Louisville Paycheck Calculator
Louisville Metro charges a 2.2% occupational license fee on wages earned in Jefferson County, on top of Kentucky's flat 3.5% state rate. The occupational fee applies to residents and commuters equally, and reciprocity does not remove it.
Tax year 2026 · Updated 2026-08-29 · Louisville minimum wage $7.25
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Local income tax in Louisville
This is the single most misunderstood point in Kentucky payroll. Kentucky has seven reciprocity agreements — more than any other state — and an Indiana or Ohio resident working in Louisville pays no Kentucky state income tax. They still pay the full 2.2% occupational fee, because reciprocity covers state tax only. The fee is a percentage of gross wages with no deduction or exemption.
Take-home pay in Louisville at different salaries
Single filer, no dependents, no pre-tax deductions, 2026 tax year, bi-weekly pay.
| Gross salary | Federal | FICA | KY tax | Local tax | Annual take-home | Bi-weekly |
|---|---|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $1,282 | $880 | $32,158 | $1,236.83 |
| $55,000 | $4,420 | $4,208 | $1,807 | $1,210 | $43,355 | $1,667.50 |
| $70,000 | $6,570 | $5,355 | $2,332 | $1,540 | $54,203 | $2,084.72 |
| $90,000 | $10,970 | $6,885 | $3,032 | $1,980 | $67,133 | $2,582.02 |
| $120,000 | $17,570 | $9,180 | $4,082 | $2,640 | $86,528 | $3,327.98 |
| $160,000 | $27,134 | $12,240 | $5,482 | $3,520 | $111,624 | $4,293.22 |
The local tax alone costs a Louisville worker on $75,000 about $1,650 a year — the difference between $57,435 and $59,085 of take-home pay. That is $63.46 per bi-weekly paycheck, and it is the number to weigh when you are deciding where inside the metro area to live or which office to accept.
Working in Louisville but living elsewhere
Louisville applies its local tax to wages earned in the jurisdiction regardless of where you live, so commuting in does not avoid it. If you also live in a taxing jurisdiction, check whether your home city grants a credit for tax paid here — a partial credit leaves a balance that arrives as a bill rather than as withholding.
Our guide to working in two states covers resident credits, part-year returns and the convenience-of-the-employer rules that catch out remote workers.
Louisville minimum wage
The minimum wage that applies in Louisville for 2026 is $7.25 an hour. At full-time hours that is $15,080 of gross pay a year and roughly $13,184 after tax.
Frequently asked questions
Does Louisville have a city income tax?
Yes. This is the single most misunderstood point in Kentucky payroll.
How much is taken out of a paycheck in Louisville?
On a $75,000 salary a single filer has roughly $17,565 withheld a year: $7,670 federal income tax, $5,738 in Social Security and Medicare, $2,507 in Kentucky state tax and premiums and $1,650 in local tax. Take-home is about $57,435 a year, or $2,209.04 every two weeks.
What is the total income tax rate in Louisville?
For a $75,000 single filer, an effective total rate of about 23.4% across federal, FICA, state and local tax. The marginal rate on the next dollar is higher.
Related calculators
For the full Kentucky picture including brackets, reciprocity and every local jurisdiction, see the Kentucky paycheck calculator. If you are paid by the hour, the Kentucky hourly calculator handles overtime and shift work.