Bill > HB13

This bill amends Kentucky Revised Statute (KRS) 141.020 to change how individual income tax is calculated. Starting January 1, 2027, it will implement a graduated tax rate for net incomes up to $300,000, with a 3.5% rate on income up to $250,000 and a 6% rate on income between $250,000 and $300,000. For net incomes exceeding $300,000, a flat tax rate of 6% will apply. The bill also removes provisions related to procedures for reducing tax rates, which previously involved complex calculations based on budget reserve funds and general fund appropriations. The bill also outlines transitional tax rates for the years 2024 through 2026, with rates of 4.5% for 2023-2024, 4% for 2024-2026, and 3.5% for 2026-2027, before the new graduated and flat tax structure takes effect.

Budget and Finance

https://apps.legislature.ky.gov/record/26RS/hb13.html