Kentucky taxes — property, income, sales, retirement

Home·Tax overview·Kentucky

Property tax, income tax, sales tax, and retirement-income treatment in Kentucky. Quick read for movers, retirees, and remote workers.

Flat 4.0% income tax. Modest property tax. 6% sales. Pension exclusion up to $31,110.
Effective property tax
0.83%
of home value/yr
Income tax (top rate)
4.0%
Sales tax (state)
6.00%
local adds more
SS taxed by state?
No

Property tax

Kentucky’s effective property tax rate is approximately 0.83% of assessed home value per year. On a $350,000 home that’s about $2,905/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 4.0%. Brackets vary by income. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 6.00%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Not taxed by state. Pensions & 401(k) withdrawals: Partial exclusion / credit available.

Top cities in Kentucky

Bowling Green · pop 79,076 · momentum 69

Owensboro · pop 60,675 · momentum 69

Covington · pop 41,611 · momentum 66

Georgetown · pop 40,518 · momentum 76

Richmond · pop 39,581 · momentum 73

Elizabethtown · pop 34,565 · momentum 65

Compare to other states: All 50 state tax overviews · All Kentucky cities · Best Kentucky cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.