Kentucky Business Tax Calculator
Calculate corporate income tax, franchise tax, and gross receipts tax for businesses operating in Kentucky.
Why calculating business in Kentucky is different
Kentucky has a flat income tax system.
State Income Tax
4.5%
Base Sales Tax
6%
State Min Wage
$7.25 / hr
Abbreviation
KY
Kentucky Business Interactive Tool
This calculator uses the latest 2026 data for Kentucky, including the minimum wage of $7.25 and the specific state income tax rates (4.5%).
Frequently Asked Questions about Kentucky Business
What is the corporate tax rate in Kentucky?
Corporate tax structures vary. In addition to potential corporate income taxes, businesses in Kentucky must also consider unemployment insurance taxes, sales tax collection (6%), and local business licenses.
Do LLCs pay tax in Kentucky?
LLCs are typically pass-through entities, meaning profits pass through to the owners' personal tax returns and are taxed at the personal 4.5% rate. However, Kentucky may also impose an annual LLC franchise fee.