Kentucky payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Kentucky, each with its effective date and the agency page it comes from.
Unemployment insurance
Checked on October 5, 2026.
Income tax withholding
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $7.25 | Kentucky Education and Labor Cabinet, Division of Wages and Hours, Wages and Hours (FAQ) (opens in a new tab) | |
| Tipped employees, cash wage | $2.13 | Kentucky Education and Labor Cabinet, Kentucky Wage and Hour Laws poster, updated April 2024 (PDF) (opens in a new tab) | |
| Rises with inflation | No | Kentucky Revised Statutes 337.275, Minimum wage (Kentucky Legislature) (opens in a new tab) | |
| Local rates | No local minimum wages: KRS 65.016 bars any city, county or other local government from requiring an employer to pay a wage or fringe benefit other than what the employer sets. The statewide $7.25 applies everywhere. | Kentucky Revised Statutes 65.016, Prohibition against requiring any employer to pay employee a certain wage or fringe benefit (Kentucky Legislature) (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
| Item | Value | Effective | Source |
|---|---|---|---|
| State program | None | Kentucky Revised Statutes Chapter 337, Wages and Hours, table of sections (Kentucky Legislature) (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
Checked on November 18, 2025.
What a paycheck costs the employer in Kentucky
Employer taxes and contributions on one employee's pay in Kentucky, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
- Employer taxes and contributions per check
- $252.70
- First check of the year
- Cost per check
- $2,560.39
- Pay included, first check
- Cost per year
- $64,956.00
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,484.23, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Kentucky unemployment | 2.7% on the first $12,0002.7% until the employer has three years of experience (it can go higher on the reserve ratio, never lower); new contract-construction employers pay the highest rate on the schedule in effect | $62.31None after check 6 | $324.00 | Kentucky Office of Unemployment Insurance, Employer Guide to Kentucky Unemployment Insurance, approved 07-31-2026 (PDF) (opens in a new tab); Kentucky Office of Unemployment Insurance, Taxable Wage Base and Surcharge Information (updated 2026-08-03) (opens in a new tab) |
| Employer taxes and contributions | $252.70 | $4,956.00 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,560.39 | $64,956.00 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
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Payroll taxes calculated, deposited and filed in every state
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Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- Kentucky Office of Unemployment Insurance, Unemployment Insurance Self-Service (KUIP) (opens in a new tab)
- Kentucky Office of Unemployment Insurance, Taxable Wage Base and Surcharge Information (updated 2026-08-03) (opens in a new tab)
- Kentucky Office of Unemployment Insurance, Employer Guide to Kentucky Unemployment Insurance, approved 07-31-2026 (PDF) (opens in a new tab)
- US DOL OUI, FUTA Credit Reductions (opens in a new tab)
- Kentucky Department of Revenue, Employer Payroll Withholding (opens in a new tab)
- Kentucky Department of Revenue, Withholding Kentucky Income Tax: Instructions for Employers, 42A003, revised March 2026 (PDF) (opens in a new tab)
- Kentucky Department of Revenue, 2026 Kentucky Withholding Tax Formula, 42A003(TCF)(10-2025) (PDF) (opens in a new tab)
- Kentucky Department of Revenue, Form K-4 Kentucky's Withholding Certificate 2026, 42A804(12-2025) (PDF) (opens in a new tab)
- Louisville Metro Revenue Commission, Frequently Asked Questions (opens in a new tab)
- Kentucky Education and Labor Cabinet, Division of Wages and Hours, Wages and Hours (FAQ) (opens in a new tab)
- Kentucky Education and Labor Cabinet, Kentucky Wage and Hour Laws poster, updated April 2024 (PDF) (opens in a new tab)
- Kentucky Revised Statutes 337.275, Minimum wage (Kentucky Legislature) (opens in a new tab)
- Kentucky Revised Statutes 65.016, Prohibition against requiring any employer to pay employee a certain wage or fringe benefit (Kentucky Legislature) (opens in a new tab)
- Kentucky Revised Statutes Chapter 337, Wages and Hours, table of sections (Kentucky Legislature) (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.