income tax

Democratic Gov. Andy Beshear has signed a Republican-backed measure to further reduce Kentucky’s income tax. The state's personal income tax will be lowered from 4% to 3.5% percent on Jan. 1, 2026.

The income tax dropped from 5% to 4.5% this year already and under House Bill 1, the rate would be reduced to 4% beginning in 2024. Republicans have signaled they plan to eliminate the income tax altogether in the future.

In January, Kentuckians will start paying less in income taxes after the Republican-led Legislature passed a bill reducing rates from 5% to 4.5%.

A lawmaker from Hardin County is hoping Kentucky follows the example of Tennessee and other states that don’t impose an income tax on its…