Kentucky Paycheck Calculator
Use this calculator to estimate your net pay after federal, state, and local taxes, as well as common deductions, for employees in Kentucky. Please note that this is an estimate and actual withholdings may vary based on specific circumstances, additional deductions, and tax law changes.
Federal Withholding
Kentucky State Withholding
Local Occupational Tax (KY)
Many KY cities/counties have an occupational tax. Enter your local rate if applicable.
Pre-Tax Deductions
Post-Tax Deductions
Paycheck Summary
Enter your details and click "Calculate Paycheck" to see your results.
Understanding Your Kentucky Paycheck
Navigating your paycheck can be complex, especially with various federal, state, and local taxes, alongside different deductions. This guide breaks down the components of a typical Kentucky paycheck to help you understand where your money goes.
Gross Pay
Your gross pay is the total amount of money you earn before any taxes or deductions are taken out. If you're an hourly employee, this is calculated by multiplying your hourly wage by the number of hours you worked in a pay period. For salaried employees, it's your annual salary divided by the number of pay periods in a year.
Example: An hourly employee earning $25/hour working 80 hours bi-weekly would have a gross pay of $25 * 80 = $2,000.
Pre-Tax Deductions
These are deductions taken from your gross pay before taxes are calculated. They reduce your taxable income, meaning you pay less in federal, state, and sometimes local taxes. Common pre-tax deductions include:
- 401(k) Contributions: Money you contribute to your retirement plan.
- Health Insurance Premiums: The cost of your employer-sponsored health coverage.
- Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs): Funds set aside for healthcare expenses.
Example: If your gross pay is $2,000 and you contribute 5% to your 401(k) ($100) and pay $150 for health insurance, your total pre-tax deductions are $250. Your taxable gross for federal and state income tax purposes would then be $1,750.
Federal Taxes
Several federal taxes are withheld from your paycheck:
- Federal Income Tax: This is a progressive tax, meaning higher earners pay a higher percentage. The amount withheld depends on your gross pay, filing status (Single, Married Filing Jointly, Head of Household), and any adjustments or credits claimed on your W-4 form (e.g., for dependents).
- Social Security Tax (OASDI): This funds retirement, disability, and survivor benefits. The rate is 6.2% of your gross pay, up to an annual wage base limit (e.g., $168,600 for 2024).
- Medicare Tax: This funds hospital insurance for the elderly and disabled. The rate is 1.45% of your gross pay, with no wage base limit. An additional 0.9% Medicare tax applies to wages over certain thresholds ($200,000 for single filers, $250,000 for married filing jointly).
Example: For a taxable gross of $1,750, Social Security would be $1,750 * 0.062 = $108.50, and Medicare would be $1,750 * 0.0145 = $25.38.
Kentucky State Income Tax
Kentucky has a relatively straightforward state income tax system. As of 2024, Kentucky has a flat income tax rate of 4.5%. While the rate is flat, your taxable income is adjusted by a standard deduction ($2,920 for 2024) and personal credits ($20 per allowance claimed on your KY W-4) before the tax is applied.
Example: If your annual taxable gross for KY is $45,500, and you claim 1 allowance, your annual KY tax would be approximately (($45,500 – $2,920) * 0.045) – $20 = $1,916.60. This would then be prorated per pay period.
Local Occupational Taxes (Kentucky)
Many cities and counties in Kentucky levy an occupational license tax (often referred to as a local income tax or payroll tax). These rates vary significantly by locality, typically ranging from 0.5% to 2.5% of your gross wages, and some may have an annual wage limit. It's crucial to know the specific rate for your work location.
Example: If your taxable gross is $1,750 and your local tax rate is 1.25%, your local tax would be $1,750 * 0.0125 = $21.88.
Post-Tax Deductions
These are deductions taken from your pay after all applicable taxes have been calculated. They do not reduce your taxable income. Common post-tax deductions include:
- Union Dues
- Garnishments
- Roth 401(k) contributions (though the growth is tax-free)
- Charitable contributions through payroll
Example: If you have $50 in post-tax deductions for union dues, this amount is subtracted after all taxes.
Net Pay
Your net pay, or "take-home pay," is the amount remaining after all federal, state, and local taxes, as well as all pre-tax and post-tax deductions, have been subtracted from your gross pay.
Gross Pay – Pre-Tax Deductions – Federal Taxes – State Taxes – Local Taxes – Post-Tax Deductions = Net Pay
Disclaimer
This calculator provides an estimate based on current tax laws and common assumptions. It does not account for all possible deductions, credits, or unique tax situations. For precise calculations or personalized tax advice, please consult a qualified tax professional or your employer's payroll department.