Kentucky vs Louisiana:
Take-Home Pay Comparison
Side-by-side tax comparison between Kentucky (3.5% top rate, flat) and Louisiana (3% top rate, flat). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Tax Structure: Kentucky vs Louisiana
Kentucky uses a flat income tax (3.5% flat) while Louisiana has a flat system (3% flat). On a $100K salary, Kentucky takes $3,382 in state and local taxes compared to Louisiana’s $2,625 \u2014 a difference of $757.
Both states use flat brackets, but Kentucky’s top rate of 3.5% is higher than Louisiana’s 3%.
Kentucky also has local income taxes (estimated at $0/year on $100K), which Louisiana does not. This widens the gap beyond just state rates.
Take-Home at Every Salary Level
Louisiana wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Kentucky | Louisiana | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,038 | $33,495 | +$457 | Louisiana |
| $50K | $40,723 | $41,230 | +$507 | Louisiana |
| $60K | $48,408 | $48,965 | +$557 | Louisiana |
| $75K | $59,030 | $59,663 | +$632 | Louisiana |
| $100K | $75,743 | $76,500 | +$757 | Louisiana |
| $120K | $89,113 | $89,970 | +$857 | Louisiana |
| $150K | $108,619 | $109,626 | +$1,007 | Louisiana |
| $200K | $142,005 | $143,262 | +$1,257 | Louisiana |
| $250K | $174,632 | $176,139 | +$1,507 | Louisiana |
| $300K | $204,946 | $206,704 | +$1,757 | Louisiana |
Cost of Living: Kentucky (90) vs Louisiana (91)
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: $84,158 in Kentucky vs $84,066 in Louisiana.
Married Filing Jointly: How It Changes the Comparison
For a single earner at $100K filing jointly, take-home becomes $81,445 in Kentucky and $82,460 in Louisiana \u2014 a difference of $1,015. The gap widens under married filing, making the state choice even more impactful for married filers.
Should You Move from Kentucky to Louisiana?
On paper, moving from Kentucky to Louisiana would save $757/year on a $100K salary, or $3,787 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $757/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.