Kentucky State Income Tax Withholding Information

State Abbreviation:

KY

State Tax Withholding State Code:

21

Acceptable Exemption Form:

K-4

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

0/Number of Exemptions

TSP Deferred:

Yes

Special Coding:

Determine the Total Number of Allowances Claimed field as follows:

First Position - Enter 0 (zero).

Second and Third Positions - Enter the number of exemptions claimed.

Additional Resources:

TAXES 13-37, Kentucky State Income Tax Withholding

Withholding Formula Left Arrow(Effective Pay Period 01, 2014)Right Arrow

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by 26 to obtain the gross annual wages.
  5. Subtract the standard deduction of Left Arrow$2,400Right Arrow from the result of step 4 to compute the taxable income.
  6. Apply the taxable income computed in step 5 to the following table to determine the annual Kentucky tax withholding.

    Tax Withholding Table

    If the Amount of
    Taxable Income Is:

    The Amount of Kentucky
    Tax Withholding Should Be:

    Over

    But Not
    Over:

     

    Of Excess Over:

    $0

    $3,000

     

    $0

    plus

    2.0%

    $0

    3,000

    4,000

     

    60

    plus

    3.0%

    3,000

    4,000

    5,000

     

    90

    plus

    4.0%

    4,000

    5,000

    8,000

     

    130

    plus

    5.0%

    5,000

    8,000

    75,000

     

    280

    plus

    5.8%

    8,000

    75,000

    and over

     

    4,166

    plus

    6.0%

    75,000
  7. Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 6 to compute the annual Kentucky tax withholding.

    Exemption Allowance = Left Arrow$10Right Arrow x Number of Exemptions

  8. Divide the annual Kentucky tax withholding by 26 to obtain the biweekly Kentucky tax withholding.