Kentucky State Tax

There are a number of taxes applicable to the state of Kentucky, which includes sales tax and six income brackets for personal income taxation.  Tax returns are due on April 15.

Kentucky state sales tax – 6%, (food, prescription drugs, utilities and medical supplies exempt)

Kentucky state personal income tax 

Six income brackets for single filings

2% - first $3,000 of taxable income

3% - $3,000 - $4,000

4% - $4,000 - $5,000

5% - $5,000 - $8000

5.8% - $8,000 - $75,000

6% - $75,000+

Kentucky state excise taxes

Taxes assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes.

$.60 per package of 20 cigarettes, $.19 per unit of snuff

15% taxation on other tobacco products

$1.92 tax per gallon of liquor, no less than 12 cents on half pint retial containers

$2.50 per 31 gallon barrel of beer

$.50 per gallon of wine

Motor vehicle usage tax – 6% of selling price

$.21 a gallon on gasoline , $.18 on diesel

Kentucky State marijuana/drug taxes

$1,000 for each marijuana plant, $3.50 per gram of processed marijuana

$200 for each gram of cocaine

Tax payments of this nature are made anonymously and signified by adding a tax stamp to the product.  This is a legally questionable tax due to the implications for self-incrimination for all that buy these stamps.

Kentucky inheritance tax 

Kentucky would only impose an estate tax if the federal estate tax were phased out.

Kentucky payroll taxes

State Disability Insurance – none

State Unemployment Insurance - 1% to 10%, wage base is $8,000.  Employer contribution is 10% for new construction employers, 2.7% for all others.

Kentucky state property tax

Property must be assessed by Jan 1, annually and listed by March 15.  The Kentucky State property tax is 13.6 cents per $100 of assessed value.  This tax goes directly into the state’s general fund.

Exemptions

Pension income exclusion stands at $41,110 for government pensions and US Railroad Retirement Board benefits.  Not adjusted for inflation.

Low income tax credit - $10,830 for single person, $14,570 family of two, up to $22,050 for a family of four.

Qualified persons may be exempt for property under $34k under the homestead exemption.  This generally applies to seniors over the age of 65, individuals that are totally disabled and disabled members and veterans of the armed forces.  All others under 65 must file applications annually.

Corporate income tax

4 percent of the first $50,000 of taxable income, 5 percent of the next $50,000 of taxable income, 6 percent of the taxable income over $100,000.

Misc

Social Security, railroad retirement are not taxed under Kentucky law.

Medical expenses that exceed 7.5% of income can be deducted.

Military personnel receiving their only income from the military pay will be exempt from taxes in Kentucky.  They will not need to file tax returns.