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    How to Calculate 2016 Kentucky State Income Tax by Using State Income Tax Table

    1. Find your income exemptions

    2. Find your pretax deductions, including 401K, flexible account contributions ...

    3. Find your gross income

    4. Check the 2016 Kentucky state tax rate and the rules to calculate state income tax

    5. Calculate your state income tax step by step

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      KENTUCKY STATE TAX TABLES

    Tax rate used in calculating Kentucky state tax for year 2016

    State Abbreviation:

    KY

    State Tax Withholding State Code:

    21

    Acceptable Exemption Form:

    K-4

    Basis For Withholding:

    State Exemptions

    Acceptable Exemption Data:

    0 / Number of Exemptions

    TSP Deferred:

    Yes

    Special Coding:

    Determine the Total Number Of Allowances field as follows:
    First Position - Enter 0 (zero).
    Second and Third Positions - Enter the number of exemptions claimed.

    Additional Information:

    None




    Withholding Formula >(Kentucky Effective 2016)<
    1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.

    2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.

    3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.

    4. Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.

    5. Subtract the standard deduction of >$2,460< from the result of step 4 to compute the taxable income.

    6. Apply the taxable income computed in step 5 to the following table to determine the annual Kentucky tax withholding.

    7. Tax Withholding Table

      If the Amount of
      Taxable Income Is:

      The Amount of Kentucky
      Tax Withholding Should Be:


      Over:

      But Not
      Over:

      Of Excess Over:

      $       0
      $  3,000
      $       0
        plus
      2%
      $        0
         3,000
          4,000
             60
        plus
      3%
          3,000
         4,000
          5,000
             90
        plus
      4%
          4,000
         5,000
          8,000
           130
        plus
      5%
          5,000
         8,000
        75,000
           280
        plus
      5.8%
          8,000
        75,000
       and over
        4.166
        plus
      6%
         75,000

    8. Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 6 to compute the annual Kentucky tax withholding.
    9. Exemption Allowance = $10 x Number of Exemptions

    10. Divide the annual Kentucky tax withholding by 26 to obtain the biweekly Kentucky tax withholding.