Updated October 8, 2026. Quick answer: Kentucky taxes wage earners at a flat 3.5% rate, with a 2026 standard deduction of $3,360, an increase of $90, according to the Department of Revenue. The Department prints one standard deduction figure and no filing-status variants.
The 2026 Kentucky rate
| Taxable income | Rate |
|---|---|
| All taxable income | 3.5% |
The 2026 Form K-4 states: “All Kentucky wage earners are taxed at a flat 3.5% rate”. The form prints one rate, so it applies to the whole amount.
The 2026 standard deduction
| Item | Amount |
|---|---|
| Standard deduction, 2026 | $3,360 |
The Department’s news release says “the standard deduction for 2026 is $3,360”. It says the Department calculates the amount “in accordance with KRS 141.081”, so it is adjusted for inflation.
A worked example
As a computed example (an illustration, not a source figure), take $100,000 of Kentucky taxable income. Starting from that income before the deduction, subtract the $3,360 standard deduction and apply 3.5%: $3,382.40 (computed). Without the deduction the flat rate alone would give $3,500 (computed).
What this page does not say
The rate is read from a withholding form and a news release, not from the rate statute, which was not fetched. The documents do not state the 2025 rate or any filing-status-specific deduction.
Common mistakes
- Looking for brackets. Kentucky’s documents print one flat rate.
- Forgetting to subtract the standard deduction before applying the rate.
- Using the 2025 standard deduction for 2026. The amount moved up by $90.
Related: how Kentucky taxes retirement income, whether Kentucky taxes pensions, how Kentucky taxes capital gains, and the federal 2026 tax brackets.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare adviser services and total fees
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore optional adviser matching
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Kentucky Department of Revenue news release: Kentucky DOR Announces 2026 Standard Deduction: https://revenue.ky.gov/News/Pages/Kentucky-DOR-Announces-2026-Standard-Deduction.aspx
- Kentucky Department of Revenue Form 42A804 (K-4) Kentucky’s Withholding Certificate 2026: https://revenue.ky.gov/Forms/42A804%20(K-4)%20(2026).pdf
- Kentucky Department of Revenue (where later updates appear; no figure on this page comes from it): https://revenue.ky.gov/
Sources: the primary documents linked above, read on October 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.