A state sales tax is levied at the rate of 6% on the purchase or lease price of taxable goods and on 
utility services. Local sales taxes are not levied in Kentucky.

The Kentucky Constitution requires the state to tax all classes of taxable property, and state statutes
allow local jurisdictions to tax only a few classes. All locally taxed property is subject to county 
taxes and school district taxes (either a county school district or an independent school district).
Property located inside city limits may also be subject to city property taxes. Property assessments 
in Kentucky are at 100% fair cash value. Special local taxing jurisdictions (fire protection districts,
watershed districts and sanitation districts) levy taxes within their operating areas (usually a small
portion of the community or county).

Click here for general fact sheets on federal, state and local business and personal taxes.

  
     
  State Property Tax Rates Per $100 Valuation, 2009  
  Selected Class of Property State Rate Local Taxation
Permitted		  
  Real Estate $0.1220 Yes  
  Manufacturing Machinery $0.1500 No  
  Pollution Control Equipment $0.1500 No  
  Inventories:  
      Raw Materials $0.0500 No  
      Goods in Process $0.0500 No  
      Finished Goods $0.0500 Yes  
      Goods-In-Transit Exempt Limited  
  Motor Vehicles $0.4500 Yes  
  Other Tangible Personal Property $0.4500 Yes  
  Source: Kentucky Department of Revenue.  

 

  Local Property Tax Rates Per $100 Valuation, 2009  
  Taxing Jurisdiction Property Taxes
Per $100 Valuation		    
  Real Estate Tangibles Motor Vehicles  
  County  
  Bourbon $0.2560 $0.2700 $0.2410    
  Clark $0.2030 $0.2604 $0.2115    
  Fayette $0.1716 $0.1905 $0.1792    
  Franklin $0.3040 $0.5006 $0.2690    
  Jessamine $0.1430 $0.3367 $0.1860    
  Madison $0.2440 $0.3690 $0.2580    
  Scott $0.1570 $0.2593 $0.2710    
  Woodford $0.1700 $0.2303 $0.1533    
  City  
  Berea $0.0990 $0.0990 $0.1000    
  Frankfort $0.2080 $0.2080 $0.2270    
  Georgetown $0.0520 $0.1254 $0.1680    
  Midway $0.1000 $0.1450 $0.1275    
  Nicholasville $0.1760 $0.1560 $0.1970    
  Paris $0.1050 $0.1050 $0.1700    
  Richmond $0.1480 $0.1540 $0.2870    
  Sadieville $0.1400 $0.1700 $0.3500    
  Stamping Ground $0.1330 $0.3960 $0.4000    
  Versailles $0.0540 $0.1419 $0.1600    
  Winchester $0.1390 $0.1390 $0.1950    
  School District  
  Berea Independent Schools $0.8570 $0.8570 $0.5910    
  Bourbon County Schools $0.5110 $0.5110 $0.5470    
  Clark County Schools $0.4760 $0.4760 $0.5350    
  Fayette County Schools $0.6280 $0.5430 $0.5920    
  Frankfort Independent Schools $0.6650 $0.6650 $0.4740    
  Franklin County Schools $0.5500 $0.5500 $0.5100    
  Jessamine County Schools $0.6110 $0.6110 $0.5470    
  Madison County Schools $0.5400 $0.5910 $0.5580    
  Paris Independent Schools $0.5600 $0.5600 $0.5530    
  Scott County Schools $0.3970 $0.3990 $0.5480    
  Woodford County Schools $0.4960 $0.4960 $0.5090    
  Source: Kentucky Revenue Cabinet.  
  Local Occupational License Taxes, 2010  
  Cities, counties and school districts may levy an occupational license tax on the net profits of businesses and/or on the salaries and wages of employees earned in the jurisdiction. Rates can vary between the two types of occupational license taxes. Occupational license taxes may be levied on businesses as either a flat rate schedule or as a percentage of apportioned net profits or gross receipts. Where both the city and county levy an occupational license tax, a credit may be given, at the option of the local governments, for the amount paid to the city against the occupational license tax of the county. (Consult local jurisdictions for further details.)  
  Taxing Jurisdiction Tax Rate on
Salaries/Wages		 Tax Rate on
Net Profits/Receipts		  
  County  
  Bourbon 0.75% 0.75%  
  Clark 1.50% 1.50%  
  Fayette 2.25% 2.25%  
  Franklin 1.00% 1.00%  
  Jessamine 1.00% 1.00%  
  Madison 1.00% 1.00%  
  Scott 1.00% 1.00%  
  Woodford 1.50% 1.50%  
  City  
  Berea 2.00% No tax  
  Frankfort 1.75% 1.75%  
  Georgetown 1.00% 1.00%  
  Midway 2.00% 2.00%  
  Nicholasville 1.50% 1.50% (on gross receipts)  
  Paris 1.50% 1.50%  
  Richmond 2.00% 2.00%  
  Sadieville No tax No tax  
  Stamping Ground No tax No tax  
  Versailles 1.00% 1.00%  
  Winchester 1.50% No tax  
  School District  
  Berea Independent Schools No tax No tax  
  Bourbon County Schools No tax No tax  
  Clark County Schools No tax No tax  
  Fayette County Schools 0.50% 0.50%  
  Frankfort Independent Schools No tax No tax  
  Franklin County Schools No tax No tax  
  Jessamine County Schools No tax No tax  
  Madison County Schools No tax No tax  
  Paris Independent Schools No tax No tax  
  Scott County Schools 0.50% 0.50%  
  Woodford County Schools No tax No tax  
  Source: Kentucky Society of Certified Public Accountants.   
  Incentives  
  Major State Incentive Programs

Bluegrass State Skills Corporation (BSSC) – Click on this link to learn more about the Grant-in-Aid and Tax Credit programs for workforce training offered through BSSC.

Kentucky Business Incentives & Financial Programs – Click on this link to learn more about the various tax incentive programs offered by the Kentucky Cabinet for Economic Development.

  
  Source: Kentucky Cabinet for Economic Development.