What are Kentucky occupational taxes?

Many Kentucky cities and counties levy a local occupational license tax on wages, typically 1% to 2.5%, which employers withhold based on where the work is performed and show separately on the pay stub.

What is the Kentucky income tax rate for 2026?

Kentucky applies a flat individual income tax of 4%, which is scheduled to continue declining in 0.5-point increments as state revenue conditions are satisfied.

Is a generated paystub legal in Kentucky?

Yes, as long as the information provided is accurate and reflects real wages or contractor payments. A generated paystub is best used as an organized personal or business record, while formal applications may still require official employer, bank, or tax documents.

How do I calculate Kentucky state taxes?

Our generator automatically applies the current 2026 Kentucky state income tax rates based on your gross pay and filing status. You don't need to do the math manually. We update our tax tables annually to match the latest Dept of Revenue guidelines.

Can I use this for a 1099 contractor in Kentucky?

Absolutely. While 1099 contractors are not employees, they often need organized income records. You can generate a "check stub" style document or a remittance advice slip using our generator to summarize payments received.

Kentucky Paystub Generator

Kentucky Paystub Generator — Create professional paystubs with accurate local tax calculations. 50+ templates, instant PDF download. Free to preview, no signup required.

Kentucky Payroll Facts (2026)

Minimum wage: $7.25/hour
State income tax: Flat 4%
Pay stub requirement: Kentucky requires employers to provide itemized pay stubs.
State payroll taxes: Local Occupational Tax

Example: Take-Home Pay on a $60,000 Salary in Kentucky

A single filer earning $60,000 per year in Kentucky takes home about $48,290 after taxes — federal income tax $5,020, state income tax $2,100, Social Security $3,720, and Medicare $870 — an effective tax rate of 19.5%. Use the generator above for your exact pay and frequency.

Kentucky Pay Statement Requirements

Kentucky Revised Statutes 337.070 requires employers to furnish each employee a statement showing the gross wages, deductions, and net wages for each pay period when deductions are made. Kentucky also requires advance notice before changing pay rates. Employers in Louisville, Lexington, and Bowling Green commonly issue stubs to satisfy this rule and document local occupational taxes.

Kentucky Flat Tax and Local Taxes

Kentucky levies a flat individual income tax that has been reduced to 4% and is scheduled to keep falling as revenue triggers are met. In addition, most Kentucky cities and counties impose a local occupational license tax (a payroll tax) commonly between 1% and 2.5%, withheld from wages. The state minimum wage matches the federal $7.25 per hour.

Frequently Asked Questions

What are Kentucky occupational taxes?: Many Kentucky cities and counties levy a local occupational license tax on wages, typically 1% to 2.5%, which employers withhold based on where the work is performed and show separately on the pay stub.
What is the Kentucky income tax rate for 2026?: Kentucky applies a flat individual income tax of 4%, which is scheduled to continue declining in 0.5-point increments as state revenue conditions are satisfied.
Is a generated paystub legal in Kentucky?: Yes, as long as the information provided is accurate and reflects real wages or contractor payments. A generated paystub is best used as an organized personal or business record, while formal applications may still require official employer, bank, or tax documents.
How do I calculate Kentucky state taxes?: Our generator automatically applies the current 2026 Kentucky state income tax rates based on your gross pay and filing status. You don't need to do the math manually. We update our tax tables annually to match the latest Dept of Revenue guidelines.
Can I use this for a 1099 contractor in Kentucky?: Absolutely. While 1099 contractors are not employees, they often need organized income records. You can generate a "check stub" style document or a remittance advice slip using our generator to summarize payments received.

How to Create a Kentucky Paystub Generator

Enter Employer Info: Fill in your company name, address, and contact information.
Enter Employee Details: Add the employee name, address, and employment information. State and local tax rates are applied automatically.
Enter Pay Period: Specify the pay period dates, pay frequency, and earnings. Federal, state, and FICA taxes are calculated for you.
Review & Download: Preview your paystub for free, then download a professional PDF instantly.