Side-by-side tax comparison between Kentucky (3.5% top rate, flat) and Louisiana (4.25% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Kentucky uses a flat income tax (3.5% flat) while Louisiana has a graduated system (1.85-4.25%). On a $100K salary, Kentucky takes $5,000 in state and local taxes compared to Louisiana’s $2,763 \u2014 a difference of $2,238.
Because Kentucky has flat brackets while Louisiana is graduated, the gap between them changes at different income levels. Kentucky’s flat rate is predictable, while Louisiana’s graduated brackets may benefit lower earners but penalize higher incomes.
Kentucky also has local income taxes (estimated at $1,500/year on $100K), which Louisiana does not. This widens the gap beyond just state rates.
Louisiana wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Kentucky | Louisiana | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,320 | $33,215 | +$895 | Louisiana |
| $50K | $39,855 | $40,974 | +$1,119 | Louisiana |
| $60K | $47,390 | $48,733 | +$1,343 | Louisiana |
| $75K | $57,788 | $59,466 | +$1,678 | Louisiana |
| $100K | $74,125 | $76,363 | +$2,238 | Louisiana |
| $120K | $87,195 | $89,880 | +$2,685 | Louisiana |
| $150K | $106,251 | $109,607 | +$3,356 | Louisiana |
| $200K | $138,887 | $143,362 | +$4,475 | Louisiana |
| $250K | $170,764 | $176,358 | +$5,594 | Louisiana |
| $300K | $200,329 | $207,041 | +$6,713 | Louisiana |
Take-home pay only tells part of the story. Kentucky has a cost of living index of 90 while Louisiana is at 91 (national average = 100).
With similar costs of living (90 vs 91), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $82,361 in Kentucky vs $83,915 in Louisiana.
For a single earner at $100K filing jointly, take-home becomes $79,710 in Kentucky and $81,948 in Louisiana \u2014 a difference of $2,238. The gap remains similar regardless of filing status.
On paper, moving from Kentucky to Louisiana would save $2,238/year on a $100K salary, or $11,188 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $2,238/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.