Taxes in Kentucky
Every state-level tax in Kentucky, in one place—income, sales, property, corporate, estate, transfer, and excise taxes. Figures sourced from the IRS, U.S. Census Bureau, and Tax Foundation.
Kentucky levies the highest wine tax in the entire country — ranking 1st out of all 51 jurisdictions. That's not a marginal edge; it's the outright national peak, and it carries a clear message for anyone buying a bottle in the Bluegrass State. For residents and relocators alike, the practical takeaway is that wine is treated as a prime target for state revenue, so shoppers should expect to pay more at the register than they would virtually anywhere else in the country. If wine figures into your budget or your business, Kentucky's top-of-the-charts ranking is the single most important thing to know before you settle here.
State income tax
3.50% flat rate.
Local income tax: Louisville levies an occupational license tax of 1.45%. See all local income taxes.
Sales tax
The combined state + local sales tax rate is 6.00%. State rate 6.00% plus an average 0.00% local.
Estate & inheritance tax
Kentucky has no estate tax, but levies an inheritance tax on beneficiaries (top rate 16%).
Real estate transfer tax
Kentucky levies a transfer tax of 0.100% — Real estate transfer tax.
Cigarette Tax
Kentucky levies a cigarette tax of $1.10 per pack of 20. Federal excise adds $1.01 per pack.
Gas Tax
Kentucky levies a gas tax of 26.40¢ per gallon. Federal excise adds 18.4¢ per gallon. Excludes local taxes and environmental/carbon-related costs.
Beer Tax
Kentucky levies a beer tax of $0.891 per gallon. Federal excise adds $0.113–$0.581 per gallon depending on brewery size.
Wine Tax
Kentucky levies a wine tax of $3.820 per gallon. Federal excise adds $1.07 per gallon (11% still wine). MS, NH, PA, UT, WY are control states with no published excise rate.
Spirits Tax
Kentucky levies a spirits tax of $9.560 per gallon. Federal excise adds $5.40 per gallon (40% ABV). NH and WY are control states with an effective $0.00 rate.
Property tax by county
The state's median county effective property tax rate is 0.68%. Compare counties below for local rates.
Counties in Kentucky by property tax rate
| County | Effective rate | Median home value |
|---|---|---|
| Campbell County | 1.01% | $252,000 |
| Harlan County | 0.99% | $73,700 |
| Kenton County | 0.98% | $244,400 |
| Letcher County | 0.96% | $67,400 |
| Bracken County | 0.92% | $125,000 |
| Henderson County | 0.90% | $171,900 |
| Oldham County | 0.90% | $393,100 |
| Union County | 0.89% | $104,500 |
| Boyd County | 0.88% | $130,700 |
| Webster County | 0.88% | $112,900 |
| Greenup County | 0.87% | $134,000 |
| Fayette County | 0.87% | $293,500 |
| Jefferson County | 0.86% | $248,400 |
| Boone County | 0.85% | $277,300 |
| Lee County | 0.84% | $83,900 |
| Daviess County | 0.84% | $199,900 |
| Bullitt County | 0.83% | $247,200 |
| Gallatin County | 0.83% | $178,200 |
| Mercer County | 0.83% | $202,300 |
| Boyle County | 0.82% | $209,900 |
| Martin County | 0.82% | $86,900 |
| Leslie County | 0.82% | $69,000 |
| Henry County | 0.81% | $197,900 |
| Bell County | 0.81% | $89,000 |
| Fulton County | 0.80% | $79,100 |
| Pendleton County | 0.80% | $159,800 |
| Nelson County | 0.80% | $238,000 |
| Franklin County | 0.79% | $216,600 |
| Carlisle County | 0.79% | $120,400 |
| Magoffin County | 0.78% | $89,000 |