Kentucky Payroll Calculator
Calculate employer payroll taxes, employee withholdings, and net pay in Kentucky. Stay compliant with Kentucky labor laws and tax regulations.
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
How do I calculate payroll taxes in Kentucky?
To calculate payroll taxes in Kentucky, you must account for federal FICA taxes (Social Security and Medicare), federal unemployment (FUTA), Kentucky state unemployment (SUTA), and Kentucky state income tax withholding (4.5%).
What is the minimum wage for payroll in Kentucky?
The current minimum wage in Kentucky is $7.25 per hour. Employers must ensure all non-exempt employees earn at least this amount.