Kentucky Income Tax Guide for 2026
Overview
Kentucky has a flat income tax rate of 3.5%. Capital gains are taxed as ordinary income. The state offers a standard deduction of $3,360 for single filers.
Income Tax Rates
Single Filers
| Income Range | Tax Rate |
|---|---|
| All income | 3.5% |
Married Filing Jointly
| Income Range | Tax Rate |
|---|---|
| All income | 3.5% |
Capital Gains Tax
Capital gains are taxed at the same rates as ordinary income.
Deductions & Exemptions
| Type | Amount |
|---|---|
| Standard Deduction (Single) | $3,360 |
| Standard Deduction (Married Filing Jointly) | $6,720 |
Additional Information
- Flat rate reduced from 4.0% to 3.5% for tax years beginning on or after January 1, 2026 (HB 1, 2025 Regular Session, Acts Ch. 1)
- Standard deduction is inflation-indexed annually under KRS 141.081; $3,360 for 2026
- First $31,110 of retirement income exempt
Charts
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Sources
The 2026 figures for Kentucky on this page were compiled from the following official government publications:
- Kentucky DOR Announces 2026 Standard Deduction - Kentucky Department of Revenue
- 2026 Kentucky Withholding Tax Formula (42A003) - Kentucky Department of Revenue
- HB 1 (2025 Regular Session) An Act relating to the individual income tax rate - Kentucky General Assembly
- Individual Income Tax (Kentucky Department of Revenue) - pension income exclusion
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Start comparingLast updated: September 15, 2026
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