-Kentucky has statewide sales tax, but no local sales tax.
-Kentucky has a Gross Receipts tax called LLET on most businesses
The state of Kentucky is one of few states with a flat individual income tax. Kentucky’s individual tax rate is 5.00% of Federal AGI (adjusted gross income).
Local & City Income Tax – Similar to Ohio, Kentucky also has Local & City income tax rates in addition to the 5.00% state tax rate. The Local & City tax rates range from nothing to 2.50% depending on the jurisdiction (the average rate is 1.39%).
Similar to Colorado, the state of Kentucky has the same tax rate for both individual and corporate taxes, which is 5.00%
In addition to a Corporate income tax, the State of Kentucky has a Gross Receipts tax commonly referred to as LLET (Limited Liability Entity Tax). The tax is subject to C Corps, S Corps, LLCs, LPs, and LLP. The minimum LLET tax is $175 for business with less than $3M in gross receipts.
If you are a C Corporation, you may get a tax credit on your Corporate taxes for anything you paid over $175 in LLET tax.
Unlike most states, Kentucky only has a state sales tax rate (no local rate.) The state sales tax rate is 6.00%.
The average property tax rate for residential property in the state of Kentucky is 0.86%, which is slightly below the country’s average rate of 1.05%.
Kentucky is one of only 6 states in the country that has an inheritance tax. Fortunately, Kentucky’s inheritance tax does not affect lineal heirs. Learn more at the Kentucky Dept of Revenue website – click here.
Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:
Kentucky is inexpensive to to set up your LLC. Here are some important facts: