Kentucky lawmakers have finalized a reduction in the state’s individual income tax rate from 4% to 3.5%, effective in 2026. This decision, supported by Republican Gov. Andy Beshear, reflects a continued effort by the GOP to lower taxes since gaining legislative control in 2017. Republican Sen. Chris McDaniel stated: “We’ve added another thing that’s fairly certain — which is the General Assembly is going to do everything in its power… to lower your taxes.” The tax cut is projected to save taxpayers approximately $718m annually. However, some Democrats, like Sen. Cassie Chambers Armstrong, argue that the benefits will disproportionately favor wealthier individuals. The ongoing tax overhaul aims to balance the budget while potentially leading to further reductions in the future.
Kentucky cuts income tax rate to 3.5%
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