2026 Tax Tables
Kentucky's income tax rate dropped to 3.5% for 2026, continuing a phased reduction under HB 8 and HB 1 (from 4.5% in 2023 → 4.0% in 2024–2025 → 3.5% in 2026). Kentucky's withholding calculation is straightforward: subtract the $3,360 standard deduction from annualized wages, then apply 3.5%. The standard deduction is indexed annually — it was $3,270 in 2025. Employees use Form K-4 primarily to claim a full withholding exemption, not to reduce withholding through allowances.
Calculate KentuckyWithholding →State Tax Rate
3.5% flat
State W-4 Form
K-4
Tax Year
2026
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Kentucky's flat income tax rate is 3.5% for 2026, reduced from 4.0% in 2025 and 4.5% in 2023. These reductions are the result of HB 8 (2022) and subsequent legislation.
The Kentucky standard deduction for 2026 is $3,360, increased from $3,270 in 2025. It is indexed annually and applies uniformly regardless of filing status — the same $3,360 is subtracted from annual wages whether the employee is single or married.
The Kentucky K-4 (Withholding Certificate, Form 42A804) is primarily used for employees claiming a withholding exemption — that is, employees who had no Kentucky income tax liability last year and expect none this year. Unlike some states, the K-4 does not establish per-allowance deductions for employees subject to withholding.
No. Kentucky requires its own K-4 form. The standard $3,360 deduction applies automatically — employees subject to withholding do not need to submit a K-4 unless they are claiming a full exemption or requesting additional withholding.