Lexington tax guide
At a $75,000 salary, working in Lexington costs an extra $2,063/year in local taxes compared to a Kentucky location with no local tax, bringing annual take-home down to $56,530.
Key tax highlights
Payroll
- Lexington taxes residents and nonresidents at different rates, so your home address matters for the paycheck calculation.
- Both resident and commuter rates are withheld from each paycheck on top of Kentucky state tax.
Local taxes
- Lexington applies a 2.75% / 2.25% local wage tax on earned income.
- Nonresidents working in Lexington pay a reduced rate of 2.25%.
Salary examples
Take-home estimates including local tax as a separate line. At $75,000, the local tax adds $2,063 per year. Use the calculator above with your actual salary for a precise estimate.
| Salary | Federal | State | Local | FICA | Take-Home | Rate |
|---|---|---|---|---|---|---|
| $50,000 | $3,820 | $2,000 | $1,375 | $3,825 | $38,980 | 78.0% |
| $75,000 | $7,670 | $3,000 | $2,063 | $5,738 | $56,530 | 75.4% |
| $100,000 | $13,170 | $4,000 | $2,750 | $7,650 | $72,430 | 72.4% |
| $150,000 | $24,734 | $6,000 | $4,125 | $11,475 | $103,666 | 69.1% |
Resident and work caveats
- Lexington local tax treatment can depend on whether you are taxed as a resident, a commuter, or both under local rules.
- Use the calculator as an estimate and verify edge cases when your home and work locations differ.
Other Kentucky city pages
| City | Local rate |
|---|---|
| Louisville | 2.2% |
| Bowling Green | 2% |
| Owensboro | 1.78% |
| Covington | 2.45% |