Kentucky Local Tax Calculator 2026 — Occupational Taxes by Jurisdiction

Kentucky's occupational license taxes: counties, cities and school districts taxing wages where you work — layered, local, and easy to underestimate. Louisville, Lexington and the other verified jurisdictions, priced on your wages.

In Louisville, the combined occupational tax is 2.2% for residents — $1,650 on $75,000 — made of the Metro levy (1.25%), the school board levy (0.75%, residents only) and the transit levy (0.20%). Non-residents working in Louisville skip the school levy and pay 1.45%. Lexington-Fayette's combined rate is 2.25%; Covington's city rate is 2.45%.

Your wages Occupational tax follows the workplace.

Annual wages ($)

Jurisdiction

You are a

Only Louisville's verified split differs by residency on this page (the school levy is residents-only); the other listed rates apply to wages earned in the jurisdiction either way. Many Kentucky jurisdictions stack city + county (+ school) levies — where the research verified a combined figure it is used and labelled in the option.

Local occupational tax

$1,650

At 2.2% on wages earned in the jurisdiction.

How Kentucky layers work

A Kentucky paycheck can carry a county occupational tax, a city license fee and a school-district levy at once, each collected (usually) by the county or city tax administrator where the work happens. Unlike Ohio, the tax follows the workplace rather than residence for most levies — Louisville's school levy is the notable resident-only piece.

Frequently asked questions

Is the occupational tax deductible against the county tax?

Generally the levies stack rather than credit — but some jurisdictions credit city tax against county or vice versa. The verified combined figures on this page already reflect stacking where the administrator publishes a combined rate.

Does Kentucky state tax sit on top?

Yes — the flat state income tax (4%) is separate, on the Kentucky paycheck pages; this family prices only the local layer.

Sources & verification. Louisville Metro Revenue Commission occupational-tax regulations; Lexington-Fayette Urban County Government; Kentucky Occupational License Association (OLTA) jurisdiction listings and the named cities' official tax pages.
Verified 4 November 2026 from the official sources named on each page. An estimator for planning, not tax advice.

Local tax$1,650

Kentucky local occupational taxes for 2026: Louisville's combined 2.20% for residents and 1.45% for non-residents, Lexington-Fayette 2.25%, Covington 2.45% and more — on $75,000 a Louisville resident owes $1,650.

UNDERSTAND YOUR RESULTS

Kentucky Local Tax Calculator — Occupational Taxes, Priced guide

Kentucky’s occupational license taxes on wages: Louisville, Lexington and the verified jurisdictions, with the resident-only school levy handled correctly.

How to use this tool

Enter wages.
Pick the jurisdiction.
Say whether you live there (it matters in Louisville).
Read the local tax.

A worked example

A Louisville resident on $75,000 owes $1,650; a non-resident co-worker owes $1,088 — the school levy is the difference.

What you can do with this tool

Louisville’s three-part levy decomposed on the page: Metro 1.25% + school 0.75% (residents only) + transit 0.20%.
Resident/non-resident split applied where the administrator publishes one.
Eleven verified jurisdictions from the LMRC regulations, Lexington-Fayette and OLTA listings.

How it works

Kentucky levies follow the workplace for most components.

Frequently asked questions

Why do residents pay more in Louisville?

The Jefferson County school board levy (0.75%) applies to residents only.

Is this on top of Kentucky state tax?

Yes — the 4% flat state tax is separate.