Kentucky is a Tax-Friendly State for Business Growth

Kentucky offers a competitive tax structure designed to support business success. With low corporate and personal tax rates, businesses and entrepreneurs benefit from a pro-growth environment that keeps costs down and opportunities high.

Two happy business partners engaging in a high five

Competitive Tax Rates

  • Corporate Income Tax: 5%
  • Corporate Capital Gains Tax: 5%Corporate Capital Gains Tax: 5%
  • Personal Income Tax: 4.5%
  • Personal Capital Gains Tax: 5%
  • State Sales Tax: 6%

Kentucky's tax system helps businesses of all sizes maximize profitability, while ensuring a business-friendly climate for investment and expansion. Whether launching a startup or expanding operations, Kentucky's tax advantages give your business the edge it needs to thrive.