TAXES 16-33, Kentucky Cities (Local) Income Tax Withholding
Published: December 28, 2016
Effective: Pay Period 25, 2016
Summary
The maximum withholding wage base and the maximum annual withholding for the cities of Covington and Florence, Kentucky have been changed as follows:
- Covington - Maximum withholding wage base from $118,500 to $127,200 and maximum annual withholding from $2,903.25 to $3,116.40.
- Florence - Maximum withholding wage base from $118,500 to $127,200 and maximum annual withholding from $2,370.00 to $2,544.00.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
City Name |
State/City Codes |
City Tax Status |
---|---|---|
Bowling Green |
21/0350 |
Duty Station/mandatory |
Covington |
21/0800 |
Duty Station/voluntary |
Florence |
21/1150 |
Duty Station/mandatory |
Frankfort |
21/1220 |
Duty Station/mandatory |
Lexington-Fayette |
21/1980 |
Duty Station/mandatory |
Louisville |
21/2090 |
Duty Station/mandatory |
Owensboro |
21/2490 |
Duty Station/mandatory |
Richmond |
21/2750 |
Duty Station/mandatory |
Withholding Formula (Effective Pay Period 25, 2016)
- Multiply the gross biweekly wages by 26 to obtain the annual wages.
- Apply the gross annual wages by multiplying the following guidelines to determine the annual Kentucky city income tax withholdings:
City
State/City Codes
Resident Percentage
Nonresident Percentage
City Tax Status (Duty Station = DS Residence = R)
Bowling Green
21/0350
1.85
1.85
DS
Covington
21/0800
2.451
2.451
DS
Florence
21/1150
2.002
2.002
DS
Frankfort
21/1220
1.95
1.95
DS, R
Lexington-Fayette
21/1980
2.25
2.25
DS
Louisville
21/2090
1.45
1.45
DS
Owensboro
21/2490
1.39
1.39
DS
Paducah (voluntary)
21/2520
2.00
2.00
Richmond
21/2750
2.00
2.00
DS
1 Maximum withholding wage base of $127,200 (maximum annual withholding of $3,116.40).
2 Maximum withholding wage base of $127,200 (maximum annual withholding of $2,544.00).
Note: City tax is mandatory unless otherwise indicated.
- Divide the annual Kentucky city income tax withholding by 26 to obtain the biweekly Kentucky city income tax withholding.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.