The state of Kentucky implements a flat income tax rate of 4.5%, regardless of the filing status utilized by taxpayers. Alongside state and federal taxes, many Kentucky residents are obligated to pay local taxes, referred to as occupational taxes. In most counties and cities in Kentucky, these taxes are calculated based on a percentage of individuals’ wages.
The federal income taxes will be directed to the IRS and will contribute towards your annual income tax obligations. FICA taxes encompass Medicare and Social Security taxes. Each month, you contribute to these systems to ensure that you can avail yourself of the benefits during your retirement. The Medicare tax amounts to 1.45% of your wages, while the Social Security tax is set at 6.2%.
Your federal income tax payment is contingent upon the details provided on your Form W-4. This form serves as a guide for your employer in determining the amount of money to withhold from your earnings for tax purposes. Hence, it is essential to complete a fresh form whenever you commence a new job or if any modifications are required during the year. Instances that necessitate a new W-4 include marriage or the birth of a child.
In the state of Kentucky, if your yearly gross pay is $55,629.00, your net pay (also known as take-home pay) will be $43,954 after deducting taxes at a rate of 20.99% ($11,674.90). These deductions consist of 8.84% ($4,915.98) for federal income tax, 4.50% ($2,503.31) for state income tax, 6.20% ($3,449.00) for social security tax, and 1.45% ($806.62) for Medicare.
Important Note: The Stubcreator provides a paycheck calculator designed to provide essential guidance. This should not be relied upon to calculate exact taxes, payroll, or other financial data. You should seek a professional accountant regarding any particular requirement.
Taxable Base Wage for Kentucky are as follows:
Year | Kentucky Taxable Base Wage |
2023 | 4.0% |
2022 | 0.3%-9.0% |
2021 | 5.40% |
The taxable wage base in Kentucky for 2024 is $11,400, and the State Unemployment Insurance (SUI) tax rates vary from 0.3% to 9%. For experienced employers, the state will utilize Schedule A to calculate tax rates; however, in order to offset the Service Capacity Upgrade Fund (SCUF) assessment, the rates will be lowered by 0.075%. Employers will have the same total rates as listed in Schedule A.
Year | Kentucky SUTA Rates |
2024 | 0.3%-9.0% |
2023 | 0.30% to 9.00% |
2022 | 5.4% |
December 21, 2023, is the date of the Florida 2024 SUI tax rates. Employers who participate in the short-time compensation program may be subject to a maximum rate of 6.4%, but otherwise, the minimum rate is 0.10%, and the maximum rate is 5.4%. In 2024, new employers pay 2.7%.
Year | Kentucky FUTA Rates |
2024 | 2.7% |
2023 | 5.4% |
2022 | 6.0% |
In Kentucky, the FICA tax rates for 2024 are as follows:
Year | Kentucky FICA Tax Rates |
2024 | 4.0% |
2023 | 4.5% |
2022 | 5% |
Kentucky’s corporate income tax rate is 5.0 per cent. In addition, Kentucky does not impose municipal sales taxes and has a state sales tax rate of 6.0 per cent. The effective property tax rate for owner-occupied dwellings in Kentucky is 0.74 per cent. There is an inheritance tax in Kentucky.
Because Kentucky has a flat income tax rate of 4.00%, all citizens, regardless of income level, pay the same amount. Apply the same 4.00% tax rate and combine it with regular pay.
Below mentioned are the details of Kentucky:
Kentucky has a progressive income tax system with multiple tax brackets. Your Kentucky state income tax is calculated based on your taxable income after federal deductions. Be sure to enter your gross income accurately and consider any applicable credits or deductions when using a paycheck calculator for Kentucky.
Kentucky does not have local income taxes at the state level. However, it's important to be aware of any local taxes imposed by specific cities or counties within Kentucky, as these could impact your net pay. Check with local tax authorities or use a calculator that accounts for any relevant local taxes.
Federal taxes, such as Social Security and Medicare (FICA), are applicable to your income in Kentucky. These deductions are standard across all states and are calculated based on your gross income. Understanding how federal taxes affect your paycheck is crucial for accurate financial planning.