AN ACT relating to the individual income tax rate.

Amend KRS 141.020 to establish a graduated tax rate for net income of $300,000 or less; establish a flat tax rate of 6% for net incomes in excess of $300,000; and remove provisions relating to tax rate reduction procedures.

Introduced: January 6, 2026

Last action: January 13, 2026

To Appropriations & Revenue (H)

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This bill would change how Kentucky calculates the individual income tax people owe. It would create a stepped, graduated tax rate for income up to $300,000, while setting a flat 6% tax rate on any income above that amount. It also removes existing procedures that were used to lower the tax rate over time. Who it may affect: Kentucky residents who pay individual income taxes, particularly those with higher incomes above $300,000.

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