Kentucky Bonus Tax Calculator 2026
Kentucky's 2026 withholding is a flat 3.5% of annualized wages above $3,360, so a bonus added to regular pay is withheld at 3.5%.
Bonus check calculator
A flat 3.5% formula
Kentucky's Department of Revenue states that "the Kentucky Withholding Tax rate will be 3.5% for tax year 2026." Its 2026 employer withholding calculator applies one formula to every pay frequency: annualize the period's taxable wages, subtract the $3,360 standard deduction, multiply by 3.5% and divide by the number of pay periods. Kentucky publishes no separate supplemental rate, so a bonus added to a paycheck is withheld at 3.5% of the bonus once the standard deduction is covered: $175.00 on $5,000 and $70.00 on $2,000.
Occupational license taxes
Kentucky's cities and counties levy occupational license taxes on wages, and employers withhold them separately from state income tax. The rates and rules differ by locality. Enter your combined local rate to see it: at 2.25%, for example, the local line on the same bonus would be $112.50.
The same formula on a regular paycheck
For comparison, the formula on a $3,000 biweekly paycheck works out to ((3,000 × 26) − 3,360) × 3.5% ÷ 26 = $100.48 per check, an effective 3.35% because the $3,360 deduction is spread across the year. The bonus gets the full 3.5% because the deduction has already been used by regular pay.
| Rule | Flat 3.5% formula above a $3,360 standard deduction |
|---|---|
| Valid through | December 31, 2026 |
| Documents | Employer Payroll Withholding page and 2026 Withholding Tax Calculator (Tax year 2026) |
| Agency | Kentucky Department of Revenue |
| Federal income tax | −$1,100.00 |
| Social Security | −$310.00 |
| Medicare | −$72.50 |
| Kentucky income tax | −$175.00 |
| Net | $3,342.50 |