FORM NP City of Henderson PO Box 671 Henderson, KY 424190671 OCCUPATIONAL LICENSE TAX NET PROFIT RET 2025

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Occupation taxes are assessed on all employed residents that hold an occupation. The Occupation Assessment Tax can be a flat tax rate or an assessed value depending upon your occupation.
Occupational Taxes - You can deduct as a business expense an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality.
A license fee at the rate of 1.49% applies to the following within the City of Henderson, KY: A. Salaries, wages, commissions and other compensations for work or services rendered in any activity (referred to as Employee Withholding Fee).
Occupational license taxes may be imposed as a percentage of gross earnings (payroll) on all persons working within the city or on gross receipts or net profits on all businesses within a city. A flat annual rate may also be used by cities, which is often referred to as a business license fee.
Calendar year filers with a year end of December 31, 2022 pay a tax of 1.49% on net profits. Beginning January 1, 2023, the net profit tax will increase to 1.65%.
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An occupation tax shall be levied upon those businesses and practitioners of professions and occupations with one or more locations or offices in the unincorporated part of the county and/or upon the applicable out-of-state businesses with no location or office in the state pursuant to O.C.G.A.