Skip to content

Kentucky: minimum wage, income tax and cost of living

Kentucky in numbers: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for a budget.

Updated: October 11, 2026

What it costs to live and work in Kentucky: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.

KentuckySource
Minimum wage$7.25 an hourUS Department of Labor, State Minimum Wage Laws (updated July 1, 2026)
State income tax3.5 % flatTax Foundation, State Individual Income Tax Rates and Brackets, 2026
State sales tax6 %Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026)
Median gross rent$998 a month (2024)US Census Bureau, ACS 2024 1-year estimates, table B25064 Median Gross Rent

Kentucky's minimum wage is $7.25 an hour, the same as the federal rate.

Kentucky taxes income at a flat 3.5 % in 2026, down from 4 %.

The state sales tax is 6 %, with no local sales taxes on top.

What income does rent in Kentucky take?

A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $998 a month, that means a household income of about $39,900 a year before tax.

Work out your take-home pay

Good to know

  • Many cities and counties charge local occupational (income) taxes, which the state rate leaves out; the Tax Foundation puts the average at 0.93 % of AGI.

Sources

Related

Know how much you will have left at the end of the month

Works without your bank: we never ask for your bank passwords.

Start for free