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 $3,500 in state and local taxes compared to Louisiana’s $3,000 \u2014 a difference of $500.
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 | $32,920 | $33,120 | +$200 | Louisiana |
| $50K | $40,605 | $40,855 | +$250 | Louisiana |
| $60K | $48,290 | $48,590 | +$300 | Louisiana |
| $75K | $58,913 | $59,288 | +$375 | Louisiana |
| $100K | $75,625 | $76,125 | +$500 | Louisiana |
| $120K | $88,995 | $89,595 | +$600 | Louisiana |
| $150K | $108,501 | $109,251 | +$750 | Louisiana |
| $200K | $141,887 | $142,887 | +$1,000 | Louisiana |
| $250K | $174,514 | $175,764 | +$1,250 | Louisiana |
| $300K | $204,829 | $206,329 | +$1,500 | 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: $84,028 in Kentucky vs $83,654 in Louisiana.
Married Filing Jointly: How It Changes the Comparison
For a single earner at $100K filing jointly, take-home becomes $81,210 in Kentucky and $81,710 in Louisiana \u2014 a difference of $500. The gap remains similar regardless of filing status.
Should You Move from Kentucky to Louisiana?
On paper, moving from Kentucky to Louisiana would save $500/year on a $100K salary, or $2,500 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $500/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.