Simple 4% Flat Tax | Dropping to 3.5% in 2026
| State | Rate | Tax on $75k |
|---|---|---|
| Kentucky | 4.0% | $3,000 |
| Indiana | 3.0% + county | ~$3,188 |
| Ohio | 0% - 3.125% | ~$2,081 |
| Tennessee | 0% | $0 |
| West Virginia | 2.36% - 4.82% | ~$3,113 |
Kentucky's rate drops from 4% to 3.5% on January 1, 2026 if revenue triggers are met. Taxpayers will save $375 annually on $75k income.
No, Kentucky does NOT tax Social Security benefits. All Social Security income is fully exempt.
Yes, but Kentucky offers a $41,110 pension exclusion for 2025 (taxpayers 59+). This makes Kentucky relatively retiree-friendly.