Kentucky Local Income Tax Rates, 2026
28 Kentucky jurisdictions withhold a local income tax, at 1% to 2.75% for residents. Base: Gross wages, Medicare wages. Every rate links to its source.
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Calculators for major Kentucky jurisdictions
Lexington (2.75%), Louisville (2.2%), Bowling Green (2%), Ludlow (up to 2%), Taylor Mill (up to 2%), Owensboro (1.78%), Elsmere (up to 1.75%), Erlanger (up to 1.5%), Fort Mitchell (up to 1.25%), Independence (up to 1.25%), Edgewood (up to 1%), Boone County (up to 0%), Covington (up to 0%)
All Kentucky local income tax rates
| Jurisdiction | Residents | Non-residents | Source |
|---|---|---|---|
| Boone County | up to 0% | — | source |
| Bowling Green | 2% | 2% | source |
| Bromley | up to 1% | — | source |
| Campbell County | up to 0% | — | source |
| Clay County | 1% | 1% | source |
| Covington | up to 0% | — | source |
| Crescent Springs | up to 1% | — | source |
| Crestview Hills | up to 0% | — | source |
| Edgewood | up to 1% | — | source |
| Elsmere | up to 1.75% | — | source |
| Erlanger | up to 1.5% | — | source |
| Fort Mitchell | up to 1.25% | — | source |
| Fort Wright | up to 0% | — | source |
| Highland Heights | up to 0% | — | source |
| Independence | up to 1.25% | — | source |
| Kenton County (unincorporated) | up to 0% | — | source |
| Lakeside Park | up to 1% | — | source |
| Lexington | 2.75% | 2.25% | source |
| Louisville | 2.2% | 1.45% | source |
| Ludlow | up to 2% | — | source |
| Madison County | 1% | 1% | source |
| McCracken County | 1% | 1% | source |
| McCreary County | 1.5% | 1.5% | source |
| Owensboro | 1.78% | 1.78% | source |
| Park Hills | up to 1.5% | — | source |
| Ryland Heights | up to 1% | — | source |
| Taylor Mill | up to 2% | — | source |
| Villa Hills | up to 1.5% | — | source |
Resident rates apply to the base shown above; bracketed localities show the top rate.
FAQ
How many Kentucky jurisdictions have a local income tax?
28 in 2026, with resident rates from 1% to 2.75%. Anywhere else in Kentucky, no local income tax is withheld.
What income does Kentucky local income tax apply to?
Gross wages or Medicare wages. 401(k) deferrals stay in the base; only Section 125 health premiums come out first.
Do non-residents who work in a Kentucky city pay it?
Yes, at the non-resident rate shown, on wages earned in the city. Residents who work elsewhere pay their home rate.