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The second reading and vote to approve should take place at the councils September 12 meeting. The property tax rate for the fiscal year of 2022-2023 is set to be $0.13 for each $100 of taxable property.
Of course, where you choose to live in Kentucky has an impact on your taxes. Campbell County has the highest average effective rate in the state at 1.36%, while Carter County has the lowest rate at a mere 0.49%.
Employees and businesses within the city limits will be subject to both rates (0.6% and 0.9%) while any employee and business outside the city limits only subject to county rate.
Kentucky has a flat income tax rate of 5%, a statewide sales tax of 6% and property taxes that average $1,382 annually. Both the sales and property taxes are below the national averages, while the state income tax is right around the U.S. mark. There are two unique aspects of Kentuckys tax system.
Kentucky Food and food ingredients are exempt from sales tax. This exemption does not include candy, tobacco, alcoholic beverages, soft drinks, dietary supplements, prepared food or any food sold through vending machines.
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Kentucky cities may not levy income or sales taxes; therefore, they must depend on revenues generated from licenses and property. Occupational and business license taxes, insurance premium taxes, and property taxes are usually the most important revenue sources for cities.
The Net Profits Tax (NPT) is imposed on the net profits from the operation of a trade, business, profession, enterprise, or other activity by: Philadelphia residents, even if their business is conducted outside of Philadelphia.
What is the sales tax rate in Somerset, Kentucky? The minimum combined 2023 sales tax rate for Somerset, Kentucky is 6%. This is the total of state, county and city sales tax rates.

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