Kentucky Tax Calculator

The Kentucky Tax Calculator enables users to estimate their annual Kentucky state tax liability by inputting their gross income, filing status, number of dependents, and deductions, ultimately providing a breakdown of their taxable income, state tax, effective tax rate, net income, and monthly income.

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How to Use the Kentucky Tax Calculator

This guide will walk you through using the Kentucky Tax Calculator. This calculator will help you determine your state tax obligations based on your financial situation.

Step 1: Enter Your Annual Gross Income

Begin by entering your annual gross income in the field labeled Annual Gross Income ($). This is a number field, and input is required. Ensure the amount is greater than or equal to zero.

Step 2: Select Your Filing Status

Next, choose your filing status from the dropdown menu provided in the field labeled Filing Status. You can select from the following options:

  • Single
  • Married Filing Jointly
  • Head of Household

This selection is required to proceed.

Step 3: Enter the Number of Dependents

In the field labeled Number of Dependents, enter how many dependents you are claiming. This is a required field, and the number must be zero or greater. Only whole numbers are accepted, so ensure that you do not use fractions or decimals.

Step 4: Input Your Total Deductions

Provide the total amount of deductions you wish to claim in the Total Deductions ($) field. This is another number field that requires input, where the value should be zero or greater.

Step 5: Review Your Results

After completing all the above fields, the calculator will automatically compute your results based on the following:

  • Taxable Income: This is calculated using the formula: max(grossIncome – deductions – (dependents * 2970), 0). It shows the portion of your income that is subject to tax.
  • Kentucky State Tax: Calculated at a rate of 5% on your taxable income using the formula: taxableIncome * 0.05.
  • Effective Tax Rate: This is the percentage of your gross income that goes toward state tax, calculated as: (stateTax / grossIncome) * 100.
  • Net Income After State Tax: Your income after accounting for state tax, calculated using: grossIncome – stateTax.
  • Monthly Net Income: This is your net income divided by 12 months, computed as: netIncome / 12.

Review these results to understand your tax obligations and the impact of your income, deductions, and dependents on your financial situation.