{"place":"Kentucky","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/kentucky","state":{"code":"KY","name":"Kentucky","slug":"kentucky","incomeTax":{"type":"flat","flatRate2026":3.5,"lowestRate2026":null,"topRate2026":null,"topRateStartsSingle":null,"notes":"The rate fell from 4.0% to 3.5% for tax years beginning on or after Jan. 1, 2026 under HB 1 (2025 Regular Session): https://apps.legislature.ky.gov/record/25rs/hb1.html. The 2026 standard deduction is $3,360.","source":"https://revenue.ky.gov/Forms/2026%20Withholding%20Formula.pdf"},"estimatedTax":{"form":"740-ES","rule":"Generally required if you expect to owe at least $500 for 2026 after withholding and refundable credits, and those will cover less than the smaller of 90% of 2026 tax or 100% of 2025 tax. Use 110% instead of 100% if 2025 AGI was over $150,000.","schedule":"Same dates as federal (April 15, June 15, and September 15, 2026, and January 15, 2027).","source":"https://revenue.ky.gov/Forms/740-ES%20Instructions%20(2025).pdf"},"minimumWage2026":{"standard":7.25,"tippedCash":2.13,"tipCreditAllowed":true,"notes":"Kentucky's state rate matches the federal $7.25. Employers may pay $2.13 an hour to employees who customarily receive more than $30 a month in tips, as long as wages plus tips reach the minimum wage.","source":"https://elc.ky.gov/workplace-standards/Documents/KY%20Wage%20and%20Hour%20Poster%20English.pdf"},"soleProprietorTaxes":[{"name":"Kentucky limited liability entity tax (LLET)","summary":"Applies to every corporation and limited liability pass-through entity doing business in Kentucky, including single-member LLCs owned by an individual, which file Form 725 even if disregarded federally. A sole proprietor without an LLC is not a limited liability entity. The tax is the lesser of 0.095% of Kentucky gross receipts or 0.75% of Kentucky gross profits (phased in between $3 million and $6 million), with a $175 minimum. Entities with $3 million or less in gross receipts or gross profits pay only the $175. (Source is the 2023 Form 725 instructions, the latest at this URL; rates are set by KRS 141.0401.)","source":"https://revenue.ky.gov/Forms/Form%20725%20Instructions.pdf"}],"contractorLaws":[{"name":"Marketplace contractor law (KRS 336.137)","summary":"App-based marketplace contractors are not employees under state or local law if they agree in writing that they are independent contractors and bear their own expenses. The platform also can't set required hours, bar other platforms or other work, or supply tools. Freight and parcel delivery are excluded.","source":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47492"}],"notes":"Many Kentucky cities and counties levy local occupational license taxes. As of Oct. 2025, 89 cities and 70 counties taxed net profits and 39 cities taxed gross receipts (KACo/KLC presentation to the Interim Joint Committee on Local Government: https://apps.legislature.ky.gov/CommitteeDocuments/26/35676/Oct%2021%20202%20KACo_KLC%20Occupational%20Taxes%20Presentation.pdf)."},"stateRetirementProgram":{"state":"Kentucky","code":"KY","programName":null,"status":"none","employerMandate":null,"mandateMin":null,"keyDates":null,"covers1099":null,"selfEnroll":"n/a","sourceUrl":"https://cri.georgetown.edu/states","note":"No enacted state-facilitated program.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/kentucky/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/kentucky/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/kentucky/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/kentucky/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/kentucky/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/kentucky/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/kentucky/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}