| |
Don't forget your state tax collector this filing season. Bankrate has details about your state obligations.
|
|
|
 |
|
|
 |
| State taxes |
|
|
|
|
|
| Overview |
|
| Kentucky collects taxes on six income brackets at rates ranging from 2 percent to 6 percent. All income earned by Kentucky residents as well as income earned by nonresidents from Kentucky sources is subject to the state tax. More on Kentucky taxes can be found in the tabbed pages below. |
| |
|
|
|
|
Income |
|
Sales |
|
Property |
|
Estate |
|
Other |
|
|
| Personal income tax |
 |
Kentucky
collects income taxes
from its residents at
the following rates:
-- 2% on the first $3,000 of taxable income
-- 3% on taxable income between $3,001 and $4,000
-- 4% on taxable income between $4,001 and $5,000
-- 5% on taxable income between $5,001 and $8,000
-- 5.8% on taxable income between $8,001 and $75,000
-- 6% on taxable income
of $75,001 and above.
|
| |
Kentucky tax returns are due on April 15, or the next business day if that date falls on a weekend or holiday. For the 2007 filing season, the deadline for federal returns was changed to Tuesday, April 17. The Kentucky Department of Revenue is following the federal lead and also giving taxpayers an extra filing day to complete state returns. |
| |
The state's pension income exclusion remains at $41,110 for 2006 returns for filers who are retired from the federal, state or local government or who receive supplemental U.S. Railroad Retirement Board benefits. Under a law enacted last year, the exclusion amount is no longer adjusted annually for inflation. |
| |
Income
thresholds for Kentucky's
family size tax credit,
which in 2005 replaced
the state's low income
tax credit, have been
adjusted for the 2006
tax year. The threshold
amount is based upon
the federal poverty
level for family size.
Individuals and married
couples whose modified
gross income is less
than 133 percent of
the threshold amount
can claim the credit.
For 2006, the thresholds
are $9,800 for a family
of one, $13,200 for
a family of two, $16,600
for a family of three
and $20,000 for a family
of four or more. |
|
|
| Sales tax |
| |
The sales tax rate in Kentucky is
6 percent. |
| | A 6 percent use
tax may be due if you make out-of-state purchases for storage,
use or other consumption in Kentucky. |
|
| Personal and real property taxes |
| |
Kentucky
has a broadly-based classified
property tax system. All classes
of property, unless exempted
by the Constitution, are taxed
by the state, although at
widely varying rates. Many
of these classes are exempted
from taxation by local government.
|
| |
Of the classes that are subject
to local taxation, three have special rates set by the General
Assembly, one by the Kentucky Supreme Court and the remaining
classes are subject to the full local rate, which includes the
tax rate set by the local taxing bodies, plus all voted levies. |
| Details on the various property
tax classifications and rates can be found in the 2006
Personal Property Tax Forms and Instructions publication,
the latest compilation of this data. |
| |
Get your local property tax information at this interactive county map page. |
| | Kentucky offers taxpayers a homestead
exemption to homeowners who are 65 years of age or older or
classified as totally disabled. Any qualified person wishing
to apply for a homestead exemption should contact the Property
Valuation Administrator of his or her county and file Form
62A350 for the homestead exemption. |
| Inheritance and estate taxes |
| |
Kentucky collects an inheritance tax. |
| | Its estate tax is limited and related to federal estate tax collection. |
| Other Kentucky tax facts |
| Kentucky imposes a tax on intangible
personal property held by a taxpayer (e.g., money market accounts, bonds, notes, trusts, annuities, interests in estates, loans to stockholders and commercial paper) on Jan. 1 of each year. Residents must file Revenue
Form 62A376, the Intangible Property Tax Return, with the
Property Valuation Administrator of the county each year between
Jan. 1 and May 15. |
| Kentucky excludes all income from all sources for active duty and reserve members of any U.S. military branch or the National Guard who are killed in the line of duty. |
|
Instead of a low-income tax credit, Kentucky offers its taxpayers a family size credit. The threshold amount is based upon federal poverty level for family size. Individuals and married couples whose modified gross income is less than 133 percent of the threshold amount can claim the credit. |
|
| More information is available at
Kentucky's Online Taxpayer Service Center's Web site. |
|
|
|
|
|
|
|
|
|
|
|
| | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • | | | • |
| |
• |
| |
• |
| | • |
| |
• |
| |
• |
|
|
|
|
