Kentucky Hourly Paycheck Calculator
Your hourly rate and hours in, your take-home pay out. Overtime is paid at 1.5× your rate; tips you report are taxed like wages.
| Per paycheck | Amount | Per year |
|---|---|---|
| Gross pay | $1,600.00 | $41,600.00 |
| Federal income tax · withheld | −$108.15 | −$2,812.00 |
| Social Security (6.2%) | −$99.20 | −$2,579.20 |
| Medicare (1.45%) | −$23.20 | −$603.20 |
| Kentucky income tax · withheld | −$51.48 | −$1,338.48 |
| Local occupational license tax · enter your local rate above | $0.00 | $0.00 |
| Take-home pay | $1,317.97 | $34,267.12 |
How the federal income tax was worked out
| Pay subject to income tax, for the year · $1,600.00 × 26 paychecks | $41,600.00 |
| Minus the IRS withholding allowance · Pub 15-T Worksheet 1A, line 1g | −$8,600.00 |
| Adjusted yearly wage | $33,000.00 |
| Tax from the IRS yearly table · standard table | $2,812.00 |
| Federal income tax per paycheck · divided by 26 | $108.15 |
IRS Publication 15-T (2026), Worksheet 1A — the percentage method payroll software uses for a Form W-4 from 2020 or later. Your employer's figure can differ by a few cents because of rounding.
How the Kentucky income tax was worked out
| Pay subject to Kentucky tax, for the year · this paycheck × 26, after pre-tax 401(k) and benefits | $41,600.00 |
| Minus Kentucky standard deduction | −$3,360.00 |
| Kentucky taxable wages for the year | $38,240.00 |
| Yearly Kentucky tax · × 3.5% flat rate | $1,338.40 |
| Kentucky income tax this paycheck · ÷ 26 (2026 withholding formula) | $51.48 |
Hourly pay in Kentucky
Kentucky's minimum wage is $7.25 an hour, the same as the federal rate, in effect since July 1, 2009. Tipped employees — people who usually get more than $30 a month in tips — can be paid $2.13 an hour if tips bring them up to $7.25.
Overtime. Time-and-a-half for hours over 40 in a workweek. Kentucky also requires time-and-a-half for hours on the seventh day if you work all seven days in one workweek, unless your employer doesn't let you work more than 40 hours that week.
Extra hours raise both taxes. The state and local taxes are percentages of your pay, so overtime adds to both.
Because hours change from week to week, your withholding changes too: a week with lots of overtime is withheld as if you earned that much every week, so more comes out. It usually evens out when you file your return.
What comes out of a Kentucky paycheck
- Federal income tax withholding — worked out from your pay and your Form W-4, using the IRS tables for 2026.
- Social Security — 6.2% of your pay, up to $184,500 of pay in 2026. Above that, it stops for the rest of the year.
- Medicare — 1.45% of all your pay, plus 0.9% on pay above $200,000 in the year.
A Kentucky paycheck usually has two state and local lines:
- Kentucky income tax: 3.5% of your pay after pre-tax 401(k) and health benefits, once a yearly standard deduction of $3,360 is taken off. There are no allowances and no filing status to pick.
- Local occupational license tax — a percentage charged by many cities, counties and some school districts. Enter your combined rate above. We apply it to your gross pay, because Kentucky law counts 401(k) and pre-tax benefit contributions as pay for these local taxes.
There is no employee deduction for unemployment insurance. The state's employer guide says employers pay for it through taxes on their payroll.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
Other Kentucky calculators
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- Kentucky Department of Revenue — 42A003 (TCF)(10-2025), 2026 Kentucky Withholding Tax Formula — 3.5% flat rate; $3,360 standard deduction; four-step formula; monthly and bi-weekly examples
- Kentucky Department of Revenue — 2026 Withholding Tax Tables, Computer Formula 42A003 (TCF)(10-2025) — wage-bracket tables to the cent
- Kentucky Department of Revenue — Form K-4 (42A804), Kentucky's Withholding Certificate (2026) — flat 3.5% with $3,360 standard deduction; low-income exemption threshold $15,650 for a household of one; K-4 only needed to claim exemption or request extra withholding
- Kentucky Department of Revenue — Withholding Kentucky Income Tax, Instructions for Employers (42A003, 4-21) — wages as defined in IRC §3401; 401(k) and cafeteria plan amounts not subject to withholding
- Kentucky General Assembly — 2025 HB 1 — rate cut from 4% to 3.5% for taxable years beginning on or after Jan. 1, 2026
- KRS 141.310 — Withholding of tax from wages paid by employer — voluntary additional withholding by agreement
- KRS 67.750 — Definitions (local occupational license taxes) — compensation includes 401(k) deferrals and section 125 contributions
- Louisville Metro Revenue Commission — W-1 tax form instructions — 2.2% residents, 1.45% non-residents
- Lexington-Fayette Urban County Government — Occupational license fee rates — 2.25% of compensation
- Fayette County Public Schools — Tax Collection Office — 0.5% on compensation of Fayette County residents for work in Fayette County (KRS 160.605)
- Kentucky Office of Unemployment Insurance — Employer guide — employers pay for unemployment insurance through taxes on their payroll
- Kentucky Labor Cabinet — Kentucky Wage and Hour Laws poster — $7.25 since July 1, 2009; $2.13 tipped cash wage; overtime after 40 hours and on the seventh day; final pay
- KRS 337.020 — Time of payment of wages — at least semimonthly, for work up to 18 days before payday
Questions
How much Kentucky tax comes out of my paycheck?
3.5% of your yearly pay after pre-tax 401(k), health benefits and the $3,360 standard deduction, spread evenly over your paychecks. Local occupational tax comes on top.
How much is taken out of a $1,000 paycheck in Kentucky?
For a single filer paid every two weeks with nothing else on the W-4, a $1,000 paycheck has about $38.08 of federal income tax, $62.00 of Social Security and $14.50 of Medicare taken out, $30.48 of Kentucky income tax, leaving $854.94. Enter your own details in the calculator for your exact figure.
What is $20 an hour after taxes in Kentucky?
Working 40 hours a week and paid every two weeks, $20 an hour is $1,600.00 before tax and about $1,317.97 after tax per paycheck — $34,267.12 a year — for a single filer with a standard W-4.
Does my 401(k) lower my Kentucky tax?
It lowers your state income tax, because Kentucky uses the federal definition of wages for withholding. It does not lower city and county occupational license taxes, which count 401(k) contributions as pay.
Do I need to fill in a K-4?
Only if you want to claim exemption from Kentucky withholding or have extra tax taken out. Without one, your employer uses the standard formula.
Is unemployment insurance taken out of Kentucky paychecks?
No. Employers pay for unemployment insurance through taxes on their payroll.