Income Tax Rate 2024. Kentucky’s individual income tax rate will lower from 4% to 3.5% in 2026, as the final budget numbers from the 2024 fiscal year met the conditions for a tax cut under. Highlights include revised tax slabs, increased deductions, and simplified.

10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. In all, through fiscal year 2030, the 3.8% flat tax is expected to reduce state revenue by $1.329 billion, the analysis predicts.