Kentucky State Income Taxes

Kentucky state income tax filing is simple and straightforward. The deadline for completing your state tax return is April 15th.


This page:

  • Lists basic Kentucky state tax information

  • Links to the major Kentucky income tax forms

  • Shows you how you can save time and money by e-filing

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Kentucky state taxes at a glance:

Tax Rate Range: Low - 2.0%; High - 6.0%
Income Brackets: Lowest - $3,000; Highest - $75,000
Number of Brackets: 6
Personal Credits: Single - y$20; Married - $40; Dependents - $20;
Standard Deduction: $650
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None

Filing your Kentucky state income tax return

The filing status used for your Kentucky state tax return does not have to be the same as the one used on your federal tax return. In fact, Kentucky tax returns have only four choices of filing status while federal tax returns have has 5choices.

Also, the deduction methods used on either tax return do not have to coincide. Meaning, you can choose the standard deduction for your state tax return, but itemize on your federal tax return.

A Kentucky income tax credit can be taken for yourself, spouse, dependent children and otherdependents. Each allowable credit reduces your Kentucky taxliability by $20.00. However, you are limited to 6 credits.

Kentucky also offers the low income credit forqualified taxpayers whose Kentucky Adjusted Gross Income is less than$25,000.00.

All income earned by Kentucky residents is fully taxable. However,Kentucky does have a pension income exclusion. For 2011 the exclusionamount is $38,775. If you have pension income, you need to complete Kentucky state tax Schedule P.Completing this form will determine the proper amount of your pension income that can be excluded.

As a Kentucky resident your capital gains are taxed at the same rate as your income. Since you Kentucky state tax return begins with your federal adjusted gross income, which already includes any capital gains, this income is automatically taxed at the same rate as ordinary income.

Part year residents and full year non residents must file a Kentucky state income tax return if any income earned during the tax year was from Kentucky sources along with a combined gross income from all sources of $5,000.00 or more.

National Guard and reserve members on active duty and serve in an area designated as a combat zone are entitles to an extension for 12 months are service in combat zone is completed.

Sidebar
You can work on your Kentucky tax return online while filing your federal return (you can work on it for free, and pay nothing until you are ready to file).

Note: if you are filing more than one state return, you must file a paper return for each additional state, as TurboTax for The Web only allows one state prep.

Kentucky income tax forms

The main Kentucky tax forms are:

Form 740 | 2011 Kentucky Income Tax Return| Instructions

Form 740EZ | Short State Income Tax Return

Schedule A | Itemized Deductions

If you need Kentucky income tax forms that are not listed here, you can download them from the Kentucky tax forms site.


Or, just simply e-file!

Additional KY state taxes help

If you need help with your federal tax return, start with our basic guide to tax filing.

For additional help with filing KY income tax returns, see the official site of the Kentucky Revenue cabinet.

State income tax info: