Kentucky Nanny Tax Guide
Kentucky has a flat 4% state income tax, but several cities including Louisville and Lexington impose local occupational taxes that employers must also withhold.
Minimum Wage
$7.25/hour (federal)
SUTA Rate Range
0.3% - 9.0%
Key Things to Know
- Flat state income tax of 4.0%
- Local occupational taxes in Louisville & Lexington
- Uses federal minimum wage
- Standard deduction of $3,160
Kentucky Employer Requirements
State Income Tax
Kentucky uses a flat 4.0% income tax rate. A standard deduction of $3,160 (single) or $6,320 (married) reduces taxable income.
Local Occupational Taxes
Louisville (2.85%), Lexington (2.5%), and other cities have occupational taxes. You must withhold local tax if your employee works in these jurisdictions.
State Unemployment Insurance
Employers pay SUI tax on the first $11,400 of wages. New employer rate is 2.7%, with rates ranging from 0.3% to 9.0% based on experience.
What will it cost?
Wondering what you'll actually owe as a Kentucky employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.
This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.
Learn More
Nanny Tax Calculator
See exactly what you'll owe in taxes for your situation.
2026 Tax Deadline Calendar
All quarterly deadlines for Kentucky and federal taxes.
Complete Guide to Nanny Taxes
Everything you need to know about household employment taxes.
Nanny Cost by State
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NannyKeeper handles Kentucky taxes automatically
We calculate and track all state-specific requirements so you don't have to.
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