Kentucky Tax Calculators.
Tax year 2026 income tax rates, brackets, and sales tax for Kentucky. Returns for tax year 2026 are generally filed in 2027; source links and last-verified dates are shown below.Tax year 2026 means income earned during calendar year 2026; those returns are generally filed in 2027. State and local sales tax rates can change during the year, so confirm current rules before filing or remitting tax.
Income Tax
Kentucky levies a flat income tax of 3.5% on taxable income for 2026. The standard deduction is $3,360 for single filers and $3,360 for joint filers. The flat rate applies uniformly across taxable income.
| Taxable Income | Rate |
|---|---|
| All taxable income | 3.5% |
Sales Tax
Groceries are exempt from sales tax. Prescription drugs are exempt.
Kentucky's top income tax rate is 3.5% for tax year 2026. Its combined state and local sales tax averages 6.0%.
What is Kentucky's income tax rate?
Kentucky levies a flat income tax of 3.5% on taxable income for 2026.
Does Kentucky tax groceries?
No, groceries (unprepared food) are exempt from Kentucky's 6% sales tax.
Will Kentucky's tax rate decrease further?
Potentially yes. Kentucky law allows the rate to drop by 0.5% increments if state revenue and budget reserves meet certain thresholds. The ultimate goal is to eventually eliminate the income tax.
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