Kentucky variant. This is a Kentucky-specific version of the Payroll Tax Estimator (Flat Rate), using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Payroll Tax Estimator (Flat Rate).
Kentucky employers owe federal payroll taxes (Social Security, Medicare, FUTA) plus state obligations (state income tax withholding and SUTA).
Payroll tax obligations in Kentucky
Employers match the 6.2% Social Security and 1.45% Medicare withheld from employees, and pay FUTA (0.6% on the first $7,000 after credits) plus state unemployment insurance.
Kentucky also requires state income tax withholding (Flat 4.0% (decreasing toward 3.5%)).
About taxes and housing in Kentucky
Kentucky applies a flat individual income tax that the state has been gradually lowering.
Kentucky has below-average property taxes and some of the more affordable home prices in the country.
Kentucky's economy features bourbon distilling, horse breeding, automotive manufacturing, and coal in its eastern regions.
Worked example: employer cost on $60,183
On a $60,183 salary, the employer's FICA match alone is 7.65% = $4,604, before FUTA and Kentucky unemployment insurance.
Quick reference
- State income tax: Flat 4.0% (decreasing toward 3.5%)
- State sales tax: 6% (plus 0.00% avg local)
- Median home value: $200,000
- Median household income: $60,183
- Effective property tax rate: 0.83%
- Avg auto insurance: $1,859/yr
Frequently Asked Questions
What payroll taxes do Kentucky employers pay?
Employer FICA match (7.65%), FUTA, state unemployment, and state income tax withholding.
What is the employer FICA match?
Employers match 6.2% Social Security + 1.45% Medicare = 7.65% of wages.