The Kentucky House of Representatives voted on Thursday to reduce Kentucky’s individual income tax rate from its current rate of 4% to 3.5%.
If approved by the Senate and governor, the rate would take effect on Jan. 1, 2026. The General Assembly has the power to override the governor’s veto with enough votes if one occurs.
The rate change will now move to the Senate for a second round of voting. The rate change came in the form of House Bill 1, which passed the House in a 90 to 7 vote. The bill was sponsored by Rep. Jason Petrie (R-Elkton), chair of the House Appropriations and Revenue Committee.
“These income tax cuts allow individual Kentuckians to decide how to spend and invest their hard-earned money in their families and local communities, rather than state government collecting it before a paycheck is issued and then doling out money and favors from Frankfort,” said Petrie in a press release.
The vote was the newest action in a long effort by the General Assembly to gradually eliminate individual income tax. You can learn more about the history of tax reductions in Kentucky by reading this write-up from the Kentucky Lantern.
