Calculate your take-home pay in Lexington, Kentucky including the 2.25% local income tax on top of Kentucky's 3.5% state rate.
| Salary | City Tax | Take-Home (with city tax) | Take-Home (without) | City Tax Cost/Month |
|---|---|---|---|---|
| $50,000 | $1,125 | $39,480 | $40,605 | $94 |
| $75,000 | $1,688 | $57,225 | $58,913 | $141 |
| $100,000 | $2,250 | $73,375 | $75,625 | $188 |
| $125,000 | $2,813 | $89,476 | $92,289 | $234 |
| $150,000 | $3,375 | $105,126 | $108,501 | $281 |
| $200,000 | $4,500 | $137,387 | $141,887 | $375 |
Lexington/Fayette County imposes a 2.25% occupational tax — slightly higher than Louisville's 2.2%. Combined with Kentucky's 3.5% state rate, Lexington workers pay 5.75% in state and local income tax.
The tax applies to all wages and net profits earned within Fayette County. Both residents and non-residents are subject to the tax if their income is earned in the county.
Home to the University of Kentucky, Lexington's occupational tax is a primary revenue source for city services and has remained stable at 2.25% for several years.
The 2.25% local tax is applied on top of Kentucky's 3.5% state income tax and federal income tax. On a $100,000 salary, Lexington's local tax costs approximately $2,250/year — that's $188/month or $87 per biweekly paycheck.
This tax applies to both residents and non-residents earning income in Lexington. Even if you commute from outside the city, you owe the local tax on wages earned within Lexington.
Lexington charges a 2.25% local income tax. On a $100,000 salary, this costs approximately $2,250/year. This tax applies to both residents and non-residents earning income in the city.
Partially. Lexington taxes non-residents on income earned within the city at 2.25%. You'd need to both live and work outside the city to avoid it entirely.
Including Kentucky's 3.5% state rate, Lexington's 2.25% local rate, and federal taxes, a $100K earner pays an effective rate of approximately 26.6%.
Yes, local income taxes are deductible as part of your state and local tax (SALT) deduction if you itemize. However, the SALT deduction is capped at $10,000 ($5,000 for married filing separately), which limits the benefit for many taxpayers.