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Kentucky Paycheck Calculator (2026)

Enter your annual salary below to see your Kentucky take-home pay after federal, state, FICA, and any local taxes for 2026.

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Quick answer

Kentucky applies a flat 3.5% state income tax to wage income, with city or county occupational license taxes layered on top in Louisville Metro, Lexington-Fayette, and several other KY jurisdictions. At $85,000 single in Kentucky with no local OLT selected, the after-tax estimate is $65,770 per year. Louisville Metro adds the highest local rate among major cities.

Kentucky's flat 3.5% state income tax came out of phased rate reductions under HB 8, replacing a higher progressive structure with a simpler single-rate schedule. What sets Kentucky apart from most flat-rate states is the city and county occupational license tax layer: Louisville/Jefferson County, Lexington-Fayette, Covington, Owensboro, Bowling Green, and many smaller jurisdictions levy a local rate on wages earned within their boundaries. Most KY workers call this the city tax, though the legal mechanism is technically an occupational license tax assessed on gross earnings. Louisville Metro carries the highest local rate among major KY cities, layered on top of the state's flat rate. The state runs no SDI program, and outside the cities with an OLT, the visible state and local income tax line on a Kentucky pay stub is the 3.5% state line alone. At $85,000 for a single filer in Kentucky with no local OLT, federal income tax lands at $9,870, state income tax at $2,857, combined FICA at $6,503, and take-home for the year at $65,770. The effective total rate is 22.62%. Use the calculator below to add Louisville Metro or another Kentucky city, or compare Kentucky against neighboring Tennessee or Indiana.

Kentucky state tax breakdown

Single-filer state income tax brackets used by the calculator for 2026.

Taxable IncomeRate
$0+3.5%

Cities in Kentucky

Local jurisdictions with employee payroll tax. Linked entries have a dedicated city page; others can be selected in the calculator below.

vs. baseline ($85,000 single filer)

A $85,000 salary in Kentucky takes home approximately $2,900 less than the same salary in a no-income-tax state like Texas or Florida.

What this estimate includes

This calculator computes Kentucky take-home pay using 2026 federal brackets after the standard deduction, FICA contributions (Social Security at the federal rate up to the annual wage base, Medicare on all wages, plus the Additional Medicare Tax above the filing-status threshold), Kentucky's state income tax schedule above, and any local income tax or state-administered payroll program (SDI, PFML, FAMLI) when you select a city or county. For states with no broad-based personal income tax, the state line is zero. It excludes employer-side payroll taxes, custom W-4 elections, supplemental-wage handling for bonuses or equity vesting, and income from sources other than W-2 wages.

Kentucky paycheck FAQ

What is the federal tax bill on $85,000 single in Kentucky for 2026?
Federal income tax at $85,000 for a Kentucky single filer is approximately $9,870, with the top slice of taxable income inside the 22% federal bracket after the standard deduction. Federal mechanics are state-agnostic, so a Kentucky resident sees the same federal line as a Tennessee or Indiana counterpart at this gross.
How much Kentucky state tax does someone owe on $85,000?
Kentucky state income tax at $85,000 for a single filer is approximately $2,857, an effective state rate of 3.36%. The flat schedule applies the same 3.5% rate across the salary range. An occupational license tax would stack on top if the worker lives or works in Louisville Metro, Lexington-Fayette, or another KY city with a local rate.
How does the Kentucky occupational license tax work?
Louisville Metro charges the highest occupational license tax among major KY cities, with Lexington-Fayette a close second; smaller Kentucky cities like Covington, Owensboro, and Bowling Green apply lower rates. The Louisville paycheck calculator page handles Louisville's specifics. OLT is technically distinct from a state income tax because it is assessed on gross wages rather than on adjusted taxable income.
How much does a 401(k) contribution save at $85,000 in Kentucky?
At $85,000 single in Kentucky with no OLT applied, the combined marginal rate is 25.5% (federal 22% plus state 3.5%). Traditional 401(k) and HSA contributions reduce both federal and Kentucky taxable income at that combined rate. Louisville Metro and other KY OLT jurisdictions usually assess their tax on gross wages, so pre-tax deferrals don't reduce the local layer.
What changes for married filing jointly, head of household, or filing separately at $85,000 in Kentucky?
MFJ at $85,000 in Kentucky produces take-home of about $69,800, roughly $4,030 more than the single estimate. The wider federal MFJ brackets and doubled federal standard deduction drive most of the gap; Kentucky's 3.5% flat rate (HB 1, 2024) is filing-status-neutral, though the state pension exclusion and standard deduction also scale, adding a small MFJ effect. Head of Household clears about $68,692, around $2,922 more than Single, helped by the wider federal HoH brackets and the larger HoH standard deduction. Combined two-return MFS take-home runs roughly $4,030 less than MFJ.
How does Kentucky compare to Tennessee at $85,000?
Tennessee does not tax wage income, so a Tennessee resident at $85,000 keeps roughly $2,857 more per year than a Kentucky counterpart on the same gross. Federal tax and FICA are identical between the two. Adding the Louisville Metro OLT to a Kentucky resident widens the gap further.

Take-home at common salaries for Kentucky

Dedicated salary-anchor pages with a federal-state-FICA breakdown, vs-baseline callouts, and a calculator pre-set to that salary and Kentucky.

$50,000 after taxesin Kentucky$75,000 after taxesin Kentucky$100,000 after taxesin Kentucky$150,000 after taxesin Kentucky$200,000 after taxesin Kentucky$250,000 after taxesin Kentucky

See also

Start from the full US take-home calculatorRun the same numbers against TennesseeCompare to the Virginia paycheck calculatorCompare to the Illinois paycheck calculatorCompare to the West Virginia paycheck calculatorHow the same salary lands in MissouriEstimate hourly take-home in KentuckyWhat overtime pays once Kentucky withholding landsKentucky self-employed take-home, both FICA halvesSee how two locations compare on take-homePlain-English glossary of paycheck termsHow we calculate paycheck taxes

Reviewed

How This Page Is Reviewed

The Kentucky paycheck page is reviewed against primary federal and state sources before each major tax-year update. Source links below are the references used to validate brackets, wage bases, and supported local taxes.

Reviewed by

PaycheckCalc Research Desk

Last reviewed

2026-07-14