How Kentucky withholding works
The 2026 formula is one line: (annual wages − $3,360) × 3.5% ÷ paychecks per year. There are no allowances – every employee gets the same standard deduction.
Department of Revenue example: $3,270 a month → $39,240 a year − $3,360 = $35,880 × 3.5% = $1,255.80 ÷ 12 = $104.65 a month.
If you have more than one job, the standard deduction is applied by each employer, so you may want extra withholding (the department suggests $117.60 a year).
Worked example: $60,000 in Kentucky
Single, $60,000 salary, paid every two weeks, Kentucky
Gross pay is $2,307.69 per paycheck. Federal income tax is $193 and Social Security and Medicare $177. Kentucky withholds $76. Take-home pay is $1,862 per paycheck, or $48,407 a year.
Take-home pay per paycheck$1,861.8226 paychecks a year
- Take-home pay per year
- $48,407
- Federal income tax withheld
- $193.08
- Kentucky income tax withheld
- $76.253.5% flat
| Item | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | −$193.08 | −$5,020.08 |
| Social Security (6.2%) | −$143.08 | −$3,720.08 |
| Medicare (1.45%) | −$33.46 | −$869.96 |
| Kentucky income tax | −$76.25 | −$1,982.50 |
| Take-home pay | $1,861.82 | $48,407.38 |
At $100,000 a year, take-home pay is about $75,798 a year.