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How to Calculate 2018 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 2018 Kentucky state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

Learn more about the in house payroll tax solution for Kentucky small businesses here.
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Kentucky State Tax Tables



How to Add a Paycheck
     How to handle Kentucky Payroll
 Important Tax Due Dates>


2018 Kentucky State Tax Witholding Table
2017 Kentucky State Tax Witholding Table
2016 Kentucky State Tax Witholding Table
2015 Kentucky State Tax Witholding Table
2014 Kentucky State Tax Witholding Table
2013 Kentucky State Tax Witholding Table
2012 Kentucky State Tax Witholding Table
2011 Kentucky State Tax Witholding Table
2010 Kentucky State Tax Witholding Table


IRS released the new 2018 tax tables on Jan 11, 2018. Employers should implement the 2018 withholding tables as soon as possible, but not later than February 15, 2018.

Current ezPaycheck software clients and ezAccounting software clients can download the latest version for free to update 2018 tax tables.

Tax rate used in calculating Kentucky state tax for year 2018

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


Need a Better Way to Calculate Kentucky State Income Tax Withholdings?

Click here to view the step by step guide on
  • How to Calculate Kentucky State Income Tax Withholdings Automatically

  • How to Create After the Fact Paychecks and Generate the Paystubs

  • How to Calculate Federal Withholding Tax

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  • Withholding Formula >(Kentucky Effective 2018)<
    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 >$2,530< 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.
     

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