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Kentucky
By the Numbers

Below is a snapshot of key features of Kentucky's tax system. (Scroll Down)
State & Local Revenue (FY08)
  • General Revenue, Own-Source (GROS): $21.2 billion
  • General Revenue as a Share of Income: 15.8%
  • Tax Revenue: $14.2 billion
  • Tax Revenue as Share of income: 10.5%
  • Personal Income Tax (Share of Tax Revenue): 32% (7 out of 51)
  • Corporate Income Tax (Share of Tax Revenue): 4.6% (15 out of 51)
  • Sales & Excise Tax (Share of Tax Revenue): 37.1% (18 out of 51)
  • Property Tax (Share of Tax Revenue): 19.6% (42 out of 51)
  • Other Taxes (Share of Tax Revenue): 4.8% (11 out of 51)
Personal Income Tax Features (2011)
  • Range of Tax Rates: 2.0% - 6.0%
  • Standard Deduction: $2,220 ($4,440 for Married Couples)
  • Personal Exemption: Credit=$20
  • Dependent Exemption: Credit=$20
  • Earned Income Tax Credit (EITC): None
  • Personal exemption is available as a credit
Corporate Income Tax Features (2011)
  • Range of Tax Rates: 4.00% - 6.00%
  • Income Level at Which Top Rate Applies: $100,000
  • Combined Reporting: No
  • Apportionment Factor (Payroll): 25%
  • Apportionment Factor (Property): 25%
  • Apportionment Factor (Sales): 50%
Sales Tax Features (2011)
  • State Sales Tax Rate: 6.00%
  • Average Local Sales Tax Rate: N/A
  • Average Combined State & Local Sales Tax Rate: 6.00%
  • State Sales Tax Treatment of Groceries: Exempt
  • Local Sales Tax Treatment of Groceries: N/A
  • Number of Services Taxed: 28 out of 168 surveyed
  • Streamlined Sales Tax Membership: Full
  • Vendor Compensation available with high ceiling
Property Tax Features (2011)
  • Does not provide a homestead exemption for non-elderly taxpayers.
  • Levies a car tax.
Other Tax & Revenue Features (2011)
  • Gasoline Tax Rate (per gallon): $0.225
  • Diesel Tax Rate (per gallon): $0.195
  • Cigarette Tax Rate (per pack): $0.60
  • Estate or Inheritance Tax: Yes
  • Net Lottery Sales Per Capita: $165
Tax Policy Oversight
  • Tax Expenditure Report: Yes
  • Tax Incidence Analysis Capability: Personal income tax only

Last Updated August 25, 2011

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