Paycheck Calculator Kentucky - KY
(Tax Year 2025: Last Updated on May 15, 2025)
Use our free Kentucky paycheck calculator to determine your net pay or take-home pay by inputting your period or annual income along with the pertinent federal, state, and local W4 information. Kentucky has a 5% flat income tax.
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AKentucky - KY Paycheck Calculator: Hourly and Salary
Are you planning to move to Kentucky to start a new business or job and trying to figure out the cost of your business or take-home pay from the job? If yes, then don't worry, this post is just for you.
From Moving to Kentucky to paycheck calculation, this guide will help you on every step. So let's get started with some of the Kentucky States facts that would definitely make up your mind for settling here.
Overview:
Kentucky, also known as "The Bluegrass State" is a southeastern state bounded by the Appalachian Mountains in the east and Ohio River in the north. The largest two cities are Lexington and Louisville, while Frankfort is the state capital.
This State is prevalent with different experiences and cultures along with a spectacular collection of parks and other natural attractions including fresh lakes, mysterious forests, glorious waterfalls, and magnificent caves. Moreover, this state is also known for tobacco farms, Kentucky Derby, breeding horses and the finest bourbon across the nation.
Cost of Living:
Apart from the natural attraction, Kentucky is also known for the low cost of living. The houses here are newer and cheaper to buy and rent compared to other states, with the median selling price for a home at $155,600 with comparatively lower property taxes and the median price for rent is $1,065. Furthermore, the Cost of Living of this state has a score of 89, which is well lower than the national score of 100 points as things like food, healthcare and transportations are relatively lower than rest of the United States, making Kentucky ranked on 8th in the country for affordability by the U.S News.
Housing:
After Housing and cost of living, another thing that comes to the mind is education while relocating, for which Kentucky is ranked on 14th in terms of affordability and ranked on number 27 in terms of education overall.
Outdoor Activities:
Outdoor activities and tourist destinations are something very important when you are planning a move, as everyone needs to refresh after days long workweek. Kentucky State is full of natural beauties, from the Appalachian Mountains to beautiful parks, from lakes to rivers, from hiking to camping and from historic museums to the longest cave systems, this state offers much to explore.
Job Market and Paycheck Calculation:
According to studies and stats, the Job market in Kentucky is not enough appealing, due to which you may find it difficult to find a good-paying job right away after moving. However, the unemployment rate here is 3.9 which is slightly lower than the national average of 4.1%. Therefore, if you are educated and skilled enough then you can find a high paying job in industries like education, health care and automotive industry like Toyota.
As we have discussed, housing, cost of living, education, tourist destinations, and the job market. You must have made up your mind about moving here.
After moving and settling in Kentucky, the next thing we need is a source of earning from whether it be a profitable business or a good-paying job. In both sources, it is essential to figure out what we are going to earn at the end of the day.
Wherefore, for the business, the employer requires to calculate their employment cost to deduce their net profit, and for the job, the employee requires to calculate their take-home pay. In both situations, the pay-check calculation is a must, and it requires a lot of knowledge, time, effort and calculation.
But don't you worry. We have done all the hard work for you.
So without wasting any of your time, let us move to our main topic, Paycheck Calculation in Kentucky.
Kentucky State and Payroll Facts:
- Along with Federal Income Tax with rates ranging from 0% to 37%, Kentucky residents are also charged with State Income Tax with a flat rate of 5%, regardless of filing status and income level. However, there is no provision for Supplemental wages and bonuses by the Kentucky state, therefore it must be also charged with the same rate of 5%.
- Besides State Income Tax, Kentucky residents are also entitled to pay local income tax; which is Occupational Tax charged by counties in addition to income tax charged by the cities in Kentucky, depending on which city and county you live in. Most cities and counties charge a percentage of your adjusted gross wages, ranging from 0.05% to 3.00%.
- Kentucky follows has the same Minimum Wage rate as the Federal Minimum Wage of $7.25 for non-exempted employees. Moreover, for Tipped employees it is $2.13, with the maximum tip credit of $5.12.
- The Bluegrass State doesn't require any State Disability Insurance (SDI) tax from the employees or employers. However, employers in Kentucky are also required to pay State Unemployment Insurance (SUI) Tax at the rates ranging from rates range from 0.3% to 9.0% on the first $10,500 earned by each employee. However, new employers are only required to pay at a flat rate of 2.7%.
- The Median Household income of Kentucky residents is $46,535, according to United States Census Bureau.
- Residents of Virginia, Indiana, Ohio, West Virginia, Illinois, Michigan, and Wisconsin working in Kentucky only taxed by their resident states, and not in Kentucky due to the reciprocal Agreement between these states.
- According to a Massachusetts Institute of Technology living-wage calculator, a livable wage for a single adult with no child is $10.82 and for a couple (one working) with 2 children is $23.92.
How to calculate Take-Home Pay in Hawaii?
To calculate Take Home Pay or Paycheck, you need to go through several steps that include calculation of Gross Pay, Pre-Tax Deductions, Federal Taxes, State Taxes, Post Tax Deductions, Local Tax, etc.
To make it easy for you, we have divided this guide into steps, which would give a general idea. However, there may be some differences or additional taxes that you may be subjected to, according to your situation. As it's a comprehensive guide, we can only discuss general aspects.
Step 1 - Calculating Gross Pay:
- To calculate Gross Pay, first, you need to determine the Pay Type of an employee. It is whether an employee is paid on an hourly basis or salary basis.
Hourly Employees:
Hourly Base Employees are paid for each hour they work in a day or a week, at the mutually agreed hourly rate. However, the mutually agreed hourly rate must be as per the Federal and State Minimum Wage law.
Hourly Employees are also entitled to receive overtime, for each excess hours worked after Regular worked hours in a day or week. The overtime rate in most of the states is one and a half times the regular hourly rate.
Salaried Employees:
Salaried employees receive a fixed but mutually agreed on pay, for a decided pay frequency, usually semi-monthly or monthly. However, for gross payment determination for a pay period, the annual salary is divided by the pay frequency.
Most of the salaried employees are exempted from Overtime law. Therefore, they are not entitled to receive overtime, regardless of how many excess hours they work. However, some exceptional salaried employees may be eligible to receive overtime according to federal or state law.
- Remember, Supplementary Wages like bonuses, commissions, and paid leaves, as well as double time and fringe benefits, are also taxable wages. Therefore they must also be included in gross pay before federal and state tax calculation.
Step 2 – Subtracting Pre-Tax Deductions (If Any):
Pre-Tax Deduction is an amount deducted from employee's gross pay before any withholding tax is deducted. These deductions have several advantages, including the reduction of taxable wages. Hence, increasing the take-home pay of an employee. However, not all deductions can be considered as free from all taxes, which means some of the deductions may require certain taxes to be withheld.
Some of the standard Pre-tax deductions are:
- Health Savings Accounts or FSA or HSA plans
- Commuter Benefits
- Healthcare Insurance
- Short-Term Disability
- Dental Insurance
- Medical Expenses and Flexible Spending Accounts
- Vision Benefits
- Retirement funds like a traditional 401(k)
Note: Pre-Tax deduction rate changes from year to year, according to inflation and costs of living by the federal government. Therefore, you must keep yourself updated with all rates before making any deductions.
Step 3 – Calculate and Subtract Federal Taxes:
Federal Taxes are taxes deducted from almost every employee, regardless of which state or county they work in.
Federal Taxes are calculated according to the details provided by the employee on Form W-4, which comprises of income, filing status, number of dependents, number of allowances, number of jobs, etc.
The details are form W-4, are assessed and used by the employer to deduce the federal tax bracket, in which the employee's taxable wage lay upon.
Federal Taxes ranges from 0% to 37% have seven tax brackets, depending on filing status, income, and the number of allowances claimed. Below is the income tax details for the year 2025:
| Taxable Income | Rate |
|---|---|
| $0 - $9,700 | 10% |
| $9,700 - $39,475 | 12% |
| $39,475 - $84,200 | 22% |
| $84,200 - $160,725 | 24% |
| $160,725 - $204,100 | 32% |
| $204,100 - $510,300 | 35% |
| $510,300+ | 37% |
| Taxable Income | Rate |
|---|---|
| $0 - $19,400 | 10% |
| $19,400 - $78,950 | 12% |
| $78,950 - $168,400 | 22% |
| $168,400 - $321,450 | 24% |
| $321,450 - $408,200 | 32% |
| $408,200 - $612,350 | 35% |
| $612,350+ | 37% |
| Taxable Income | Rate |
|---|---|
| $0 - $9,700 | 10% |
| $9,700 - $39,475 | 12% |
| $39,475 - $84,200 | 22% |
| $84,200 - $160,725 | 24% |
| $160,725 - $204,100 | 32% |
| $204,100 - $306,175 | 35% |
| $306,175+ | 37% |
| Taxable Income | Rate |
|---|---|
| $0 - $13,850 | 10% |
| $13,850 - $52,850 | 12% |
| $52,850 - $84,200 | 22% |
| $84,200 - $160,700 | 24% |
| $160,700 - $204,100 | 32% |
| $204,100 - $510,300 | 35% |
| $510,300+ | 37% |
Step 4 – Deduct FICA Taxes:
Along with Federal Withholding, employers are also required to withhold Federal Insurance Contributions Act (FICA) taxes from the employee's paycheck as well as pay a matching amount themselves to the IRS.
There are two types of FICA taxes:
- Social Security:
Employers are entitled to withhold 6.2% from the first $132,900 (wage base limit for 2025), taxable wages earned by the employee. Moreover, the employer is also required to pay an equal amount to the IRS for each employee.
- Medicare:
Medicare tax is another type of FICA Tax that an employer must withhold from the taxable gross wage of the employee, at the rate of 1.45%. Unlike social security, there is no wage base limit. However, if the employee earns more than the defined threshold than he/she is subjected to an additional 0.9% of the Additional Medicare Tax rate, for every dollar earned above the threshold amount.
Like Social Security, IRS also requires the employer to pay an equal amount of Medicare tax for each employee.
Step 5 – Payment of FUTA Taxes
The Federal Unemployment Tax Act (FUTA) is a tax that the IRS requires the employer to pay without deducting anything from the employee's paycheck.
The FUTA Tax rate for 2025 is 6.0% of the first taxable wage up to $7000 of an employee. However, once the taxable wage limit is crossed for a particular employee, then the employer no longer has to pay this tax.
What to reduce FUTA Tax?
Yes! Then you must pay State Unemployment Insurance (SUI) tax in full and on time and get a FUTA tax credit of up to 5.4%. Which means, you saved a whopping 90% from FUTA Tax.
Step 6 – Subtract Post-Tax Deductions (If any):
Although, employers are not required to withhold any amount as a post-tax deduction, unless if an employee voluntarily asks to do so. However, there are some deductions ordered by the court like child support or wage garnishment, which the employer is entitled to deduct.
Step 7 – Withhold Kentucky State Payroll Taxes:
As were are done with federal taxes, let's talk about State Payroll Taxes. Kentucky State requires the employers to withhold state withholding tax at a flat rate of 5% from the employee's paycheck, regardless of income level or filing status.
Employers are required to calculate the withholding amount according to the details provided by the employee in Form K-4. This form is filled by the employee at the time of enrollment and it includes tax-related details such as filing status, income, number of allowances to be claimed, etc. Employees are suggested to update the details on Form K-4 regularly when any significant event occurs in their lives like marriage, child's birth or divorce.
State Unemployment Insurance (SUI) Tax:
Like most of the states, Kentucky also requires the employer to pay State Unemployment Insurance (SUI) Tax, range from 0.4% to 9.25% (as in 2025) on the first $10,200 in wages paid to each employee in a Year. However, if the employer is new, then he gets the relief to pay a flat rate of 2.7% of the wage paid to each employee.
Note: Employees are not required to pay this tax.
Step 8 – Withhold Local Tax:
Besides State Income Tax, Kentucky residents are also entitled to pay local income tax; which is Occupational Tax charged by counties in addition to income tax charged by the cities in Kentucky, depending on which city and county you live in. Most cities and counties charge a percentage of your adjusted gross wages (not taxable income), ranging from 0.05% to 3.00%.
| City/County | Rate |
|---|---|
| Adairville | 1.50% |
| Alexandria | 1.50% |
| Allen County | 1.00% |
| Ashland | 2.00% |
| Auburn | 0.33% |
| Augusta | 1.00% |
| Ballard County | 1.00% |
| Bardstown | 1.00% |
| Bath County | 1.50% |
| Beattyville | 1.00% |
| Bellevue | 2.50% |
| Benton | 0.50% |
| Berea | 2.00% |
| Boone County | 0.80% |
| Bourbon County | 0.75% |
| Bowling Green | 1.85% |
| Boyd County | 1.00% |
| Boyle County | 0.75% |
| Breathitt County | 1.00% |
| Bromley | 0.13% |
| Brooksville | 1.75% |
| Brownsville | 1.00% |
| Burkesville | 2.00% |
| Butler County | 1.00% |
| Cadiz | 3.00% |
| Caldwell County | 1.50% |
| Calvert City | 0.50% |
| Campbell County | 1.05% |
| Campbellsville | 1.00% |
| Carlisle | 1.00% |
| Carroll County | 1.00% |
| Catlettsburg | 1.50% |
| Cave City | 1.00% |
| Clark County | 1.50% |
| Clarkson | 1.20% |
| Clay City | 1.00% |
| Clay County | 1.00% |
| Clinton | 0.50% |
| Clinton County | 1.25% |
| Cold Spring | 1.00% |
| Covington | 2.50% |
| Crescent Springs | 0.08% |
| Crestview Hills | 0.75% |
| Crittenden County | 0.50% |
| Cumberland County | 1.25% |
| Cynthiana | 1.50% |
| Danville | 1.25% |
| Daviess County | 0.35% |
| Dayton | 2.00% |
| Dry Ridge | 1.25% |
| Earlington | 1.50% |
| Eddyville | 1.50% |
| Edgewood | 0.75% |
| Edmonton | 1.50% |
| Elizabethtown | 1.35% |
| Elkhorn City | 1.00% |
| Elkton | 0.13% |
| Elsmere | 1.00% |
| Eminence | 0.75% |
| Erlanger | 0.08% |
| Estill County | 1.25% |
| Fayette County | 2.25% |
| Flemingsburg | 1.00% |
| Florence | 0.10% |
| Fort Mitchell | 0.08% |
| Fort Thomas | 1.25% |
| Fort Wright | 0.08% |
| Frankfort | 1.95% |
| Franklin | 0.60% |
| Franklin County | 1.00% |
| Fulton | 2.00% |
| Gallatin County | 1.00% |
| Gamaliel | 1.00% |
| Garrard County | 1.50% |
| Georgetown | 1.00% |
| Glasgow | 1.50% |
| Graves County | 1.00% |
| Grayson | 0.50% |
| Grayson County | 0.05% |
| Greensburg | 1.00% |
| Guthrie | 0.15% |
| Hancock County | 1.25% |
| Harrison County | 1.50% |
| Harrodsburg | 1.00% |
| Hart County | 0.80% |
| Hazard | 1.25% |
| Henderson | 1.00% |
| Hickman | 1.50% |
| Hickman County | 1.25% |
| Highland Heights | 0.35% |
| Hillview | 1.80% |
| Hodgenville | 0.75% |
| Hopkinsville | 1.50% |
| Horse Cave | 1.00% |
| Independence | 0.08% |
| Jackson | 2.00% |
| Jackson County | 1.85% |
| Jamestown | 1.00% |
| Jeffersontown | 1.00% |
| Jeffersonville | 1.00% |
| Jessamine County | 1.00% |
| Johnson County | 0.50% |
| Junction City | 1.00% |
| Kenton County | 0.71% |
| Knox County | 1.00% |
| La Grange | 1.00% |
| Lakeside Park | 0.75% |
| Laurel County | 1.00% |
| Lebanon | 1.00% |
| Lebanon Junction | 1.00% |
| Leitchfield | 1.20% |
| Leslie County | 1.00% |
| Lewisburg | 1.50% |
| Lexington Fayette Urban County | 2.25% |
| Lincoln County | 1.00% |
| Livingston County | 1.00% |
| Logan County | 0.75% |
| Louisville | 2.20% |
| Ludlow | 0.08% |
| Madison County | 1.00% |
| Madisonville | 1.50% |
| Magoffin County | 1.00% |
| Marion | 1.00% |
| Marion County | 1.00% |
| Marshall County | 1.00% |
| Martin | 1.00% |
| Martin County | 1.00% |
| Mayfield | 2.00% |
| Maysville | 0.08% |
| McCracken County | 1.00% |
| McCreary County | 1.00% |
| McKee | 1.00% |
| McLean County | 1.00% |
| Menifee County | 1.00% |
| Mercer County | 0.45% |
| Metcalfe County | 1.00% |
| Middlesboro | 2.00% |
| Midway | 2.00% |
| Millersburg | 1.00% |
| Monroe County | 1.00% |
| Montgomery County | 1.00% |
| Morehead | 1.50% |
| Morgan County | 0.50% |
| Morgantown | 2.00% |
| Mount Vernon | 1.00% |
| Mt. Olivet | 2.00% |
| Mt. Washington | 1.00% |
| Muldraugh | 0.25% |
| Munfordville | 0.75% |
| Nelson County | 0.50% |
| Newport | 0.35% |
| Nicholas County | 1.00% |
| Nicholasville | 1.00% |
| Nortonville | 1.00% |
| Oak Grove | 1.50% |
| Ohio County | 1.00% |
| Owensboro | 1.39% |
| Owenton | 1.00% |
| Paducah | 2.00% |
| Paintsville | 1.25% |
| Paris | 1.50% |
| Park City | 1.00% |
| Park Hills | 0.35% |
| Pendleton County | 0.50% |
| Perryville | 1.00% |
| Pike County | 1.00% |
| Pikeville | 2.00% |
| Pineville | 1.50% |
| Pioneer Village | 1.00% |
| Powell County | 1.00% |
| Prestonsburg | 1.50% |
| Princeton | 1.50% |
| Pulaski County | 1.00% |
| Raceland | 1.50% |
| Radcliff | 2.00% |
| Richmond | 2.00% |
| Robertson County | 1.50% |
| Rockcastle County | 1.50% |
| Rowan County | 1.50% |
| Russell County | 0.75% |
| Russell Springs | 1.00% |
| Russellville | 2.00% |
| Ryland Heights | 1.00% |
| Saylersville | 1.00% |
| Scott County | 1.00% |
| Scottsville | 1.50% |
| Shelby County | 1.00% |
| Shelbyville | 1.50% |
| Shepherdsville | 1.50% |
| Shively | 1.50% |
| Silver Grove | 1.50% |
| Simpson County | 0.75% |
| Southgate | 2.50% |
| Spencer County | 0.80% |
| Springfield | 1.00% |
| St. Matthews | 0.75% |
| Stanford | 0.65% |
| Stanton | 1.00% |
| Taylor County | 1.00% |
| Taylor Mill | 2.00% |
| Taylorsville | 0.75% |
| Todd County | 1.00% |
| Tompkinsville | 1.00% |
| Union County | 0.50% |
| Vanceburg | 1.00% |
| Versailles | 1.50% |
| Villa Hills | 0.08% |
| Vine Grove | 1.00% |
| Warren County | 1.00% |
| Washington County | 0.75% |
| Wayne County | 0.90% |
| West Buechel | 1.00% |
| West Liberty | 0.05% |
| West Point | 1.00% |
| Whitley County | 1.00% |
| Wilder | 0.08% |
| Wilmore | 2.00% |
| Winchester | 2.00% |
| Wolfe County | 1.25% |
| Woodford County | 1.50% |
Step 9 – Calculate Pay Check:
Once you are done with all elements (steps) discussed earlier, you will have a net pay amount for each employee. Now all you have to do is pay employees on time. Also, to file all Federal Taxes, State Taxes, FICA, and FUTA taxes on time, to avoid any penalties.
Kentucky State and Federal Payroll Laws:
- Kentucky Law requires the employer to pay their employees overtime at one and a half times the regular hourly rate for each excess hour worked after 40 hours in a workweek. However, the following type of employees are exempted from this law:
- Employees working on the retail store as seller, purchaser, and distributer of merchandise, articles, wares, goods, or commodities
- Employees working in motels, hotels, and restaurants.
- Employees working as a 24-hour babysitter for a non-profit childcare facility in an employer's facility.
- Employees employed by the third-party agency for providing in-home elder care.
- Employees exempted under FLSA overtime law are also exempted from Kentucky overtime law.
- Salaried employees such as professionals, administrative, executives, and computer professionals.
- Employees engaged in outside sales, agriculture and motor carrier.
- The current minimum wage in Kentucky is equal to the federal minimum wage of $7.25.
- The Cash Minimum Wage rate for a Tipped employee (who earns more than $30 a month as a tip) is $2.13, with the Maximum Tip Credit of $5.12.
- Employers in Kentucky are allowed to reduce the minimum wage by the cost of providing lodging, board, and other allowances.
- Following are the minimum wage exemptions from Kentucky Minimum Wage Law:
- Minor Employees: Minor employees of age under 20 are allowed to be paid the minimum wage rate of $4.25 for the first 90 days of employment.
- Student Employees: High School or College students who work as part-time employees under certain employers like "work-study programs at universities" are allowed to be paid at the Minimum Wage rate of $6.16, which is 85% of the regular minimum wage for up to 20 hours of work per week.
- State Law requires the employers to provide ten minutes PAID rest break for every four hours of Work. Moreover, employers are also entitled to provide a reasonable period of the lunch break to the employees, which should be no later than five hours or no sooner than three hours of work in a shift, unless employers and employees have a mutual agreement.
- Kentucky State requires employers to pay at least twice a month, which is a semi-monthly pay frequency. Moreover, the Payday for the last pay period must not be more than 18 days.
FAQs
Answer: Following are the taxes taken out of the employee's paycheck in Kentucky:
- Federal Income Tax: This tax is charged at the rates ranging from 0% to 37%, having seven tax brackets depending on the filing status and income level.
- FICA Tax: This is another tax charged by the federal. This tax comprises of two taxes, charged on the employees, and the matching amount is paid by the employer. The employee's portion comprises of 6.2% of Social Security Tax and 1.45% of Medicare Tax. Moreover, if the employee's income exceeds the defined threshold, they are also charged with the additional Medicare tax of 0.9%.
- State Income Tax: This tax is charged at a flat rate of 5%, regardless of filing status and income level.
- County Tax: Many counties in Kentucky also charge a county income tax, on a flat rate, depending on which county you live in. (This tax is charged on wages, instead of taxable income)
- Local Income Tax: In Addition to county tax, many cities also charge a Local Income tax, on a flat rate, depending on which city you live in. (This tax is charged on wages, instead of taxable income)
Answer: Following Payroll taxes are charged on employers and employees in Kentucky:
- Federal Income Tax: This tax is charged on employees, at the rates ranging from 0% to 37%, having seven tax brackets depending on the filing status and income level.
- FICA Tax: This is another tax charged by the federal on both employers and employees. This tax comprises of two taxes, charged on the employees, and the matching amount is paid by the employer for each employee. The employee's portion comprises of 6.2% of Social Security Tax and 1.45% of Medicare Tax. Moreover, if the employee's income exceeds the defined threshold, they are also charged with the additional Medicare tax of 0.9%.
- State Income Tax: This tax is charged on employees, at a flat rate of 5%, regardless of filing status and income level.
- State Unemployment Insurance (SUI) Tax: Only employers in Kentucky are required to pay State Unemployment Insurance (SUI) Tax at the rates ranging from rates range from 0.3% to 9.0% on the first $10,500 earned by each employee. However, new employers are only required to pay at a flat rate of 2.7%.
- County Tax: Many counties in Kentucky also charge a county income tax on employee's paycheck, at a flat rate, depending on which county you live in. (This tax is charged on wages, instead of taxable income).
- Local Income Tax: In Addition to county tax, many cities also charge a Local Income tax on employee's paycheck, at a flat rate, depending on which city you live in. (This tax is charged on wages, instead of taxable income).
Answer: Yes, Kentucky State charges the state withholding tax on a flat rate of 5%, on employee's paycheck.
Answer: Yes, Employees are also entitled to pay Occupational Taxes depending on which city or county they are working in Kentucky.