Kentucky Salary After Tax Calculator
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Wage Comparison in Kentucky
Compare Your Kentucky Salary
Kentucky offers competitive salaries with progressive state income tax rates and low cost of living, particularly strong in manufacturing, healthcare, agriculture, and bourbon production, with Louisville and Lexington serving as major economic centers.
- • Compare by Louisville, Lexington, Bowling Green, and Covington areas
- • Factor in Kentucky’s progressive income tax (2% to 5%)
- • Consider manufacturing, healthcare, and agriculture sectors
Kentucky Salary Factors
Louisville: Healthcare, logistics, manufacturing
Lexington: Healthcare, education, technology
Manufacturing: Automotive, bourbon, tobacco
Bourbon capital of the world
Average Salary in Kentucky
Kentucky Industry Averages
Kentucky’s economy is driven by manufacturing, healthcare, agriculture, and bourbon production. The state is home to major automotive plants, world-renowned bourbon distilleries, and growing healthcare and technology sectors, offering diverse career opportunities.
Healthcare
$58,000
Average annual salary
Manufacturing
$55,000
Average annual salary
Agriculture
$42,000
Average annual salary
Bourbon Industry
$52,000
Average annual salary
Kentucky Salary Factors
- • Manufacturing hub
- • Healthcare leader
- • Bourbon capital
- • Low cost of living
- • Central location
- • Strong work culture
Kentucky Minimum Wage
Kentucky State Minimum Wage
Kentucky follows the federal minimum wage rate of $7.25 per hour. The state has not enacted a higher minimum wage, though some cities may have local ordinances with higher rates for certain workers or contractors.
Kentucky Minimum Wage
$7.25
per hour (Federal Rate)
Annual Full-Time
$15,080
40 hours/week, 52 weeks
Kentucky vs Other States
Note: Kentucky’s low cost of living and strong job market help offset the lower minimum wage compared to neighboring states.
Kentucky Tax Information
Understanding Kentucky Taxes
Kentucky has a progressive state income tax system with rates ranging from 2% to 5% based on income level. The state also has local sales taxes that vary by municipality, and property taxes that are generally low compared to national averages.
Federal Income Tax
Progressive rates from 10% to 37% based on income
Kentucky State Income Tax
Progressive rates from 2% to 5%
Social Security Tax
6.2% on income up to $168,600 (2025 limit)
Medicare Tax
1.45% on all income, plus 0.9% on income over $200,000
Kentucky Tax Structure
State Income Tax Brackets (2025)
- • 2% on income up to $3,000
- • 3% on income $3,001 – $4,000
- • 4% on income $4,001 – $5,000
- • 5% on income $5,001 – $8,000
- • 5.8% on income $8,001 – $75,000
- • 6% on income over $75,000
- *Rates apply to taxable income after deductions
Sales Tax
Kentucky has a 6% state sales tax, with local taxes that can bring the total to 6-9% in most areas.
Tax Benefits
Kentucky offers various tax credits and deductions, including homestead exemptions and tax credits for certain industries and activities.
Important Note
This calculator provides estimates. Consult a tax professional for personalized advice and accurate calculations.