Kentucky Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for Kentucky in 2026, with political context.
No
No Income Tax
4.0% (flat)
Income Tax Rate
#40
Tax Burden Rank (1=highest)
#16
Property Tax Rank (1=highest)
Tax Policy Overview
Kentucky converted from a progressive income tax to a 4% flat rate in 2022 and has been reducing it toward 3.5%. The state has a moderate overall tax burden. Governor Andy Beshear (D) has governed with a Republican supermajority that passes tax cuts over his preferences.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 4.0% (flat) |
| No Income Tax | No |
| Sales Tax | 6.0% |
| No Sales Tax | No |
| Corporate Tax | 5.0% |
| Property Tax Rank | #16 nationally (1=highest) |
| Overall Tax Burden Rank | #40 nationally (1=highest) |
Political Context
Kentucky Republicans have passed flat income tax with the goal of eventually eliminating the income tax. Beshear has signed some tax cuts while opposing others. The flat tax model and elimination goal reflect a national Republican policy trend toward no-income-tax states.