Kentucky meets conditions for lawmakers to cut income tax in 2026

Associated Press

FRANKFORT, Ky. (AP) — Republican lawmakers say Kentucky has met the financial conditions to set in motion another cut in the personal income tax rate that could take effect in 2026. Sen. Chris McDaniel said Wednesday that state budget officials confirmed the financial triggers were satisfied. He says that clears the way for lawmakers to reduce the individual income tax rate to 3.5% from 4%, effective in January 2026. The legislature can pass the rate cut when it reconvenes next year. A year ago, the state failed to fully meet financial conditions. That means the income tax rate will hold steady at 4% this coming January.