Insurance Premiums Tax/Surcharge
Insurance Premiums Tax is a tax paid by all life insurance companies, all stock insurance companies, all mutual insurance companies, and all captive insurers doing business in Kentucky.
The tax is assessed on premiums collected by insurance companies on policies written in Kentucky during the preceding calendar year.
The Insurance Premium Surcharge is charged and collected by every foreign, domestic, or alien insurer, other than life insurers, on premiums, assessments, or other charges, for insurance coverage provided to its policyholders on risks located in Kentucky. The surcharge rate is $1.80 per $100 of premiums, and assessments, or other charges for insurance coverage.
The Insurance Premiums Tax and Premium Surcharge laws are located in Chapters 136 and 304 of the Kentucky Revised Statutes. Links to the applicable sections are listed on the right-hand side of this page.
||Exemptions for Insurance Premium Surcharge:
Types of Policyholders Exempt or Partially Exempt from the Insurance Premium Surcharge pursuant to KRS 136.392(5):
- The federal government;
- Resident educational and charitable institutions qualifying under Section 501(c)(3) of the Internal Revenue Code;
- Resident nonprofit religious institutions for real, tangible, and intangible property coverage only;
- State government for coverage of real property; or
- Local governments for coverage of real property.
Also, Exempt from the Insurance Premium Surcharge:
- Premiums received by life and health insurers pursuant to KRS 136.392(1);
- Municipal premium taxes pursuant to KRS 136.392(1);
- Premiums received for accident and health insurance;
- Premiums received for federal insured crop insurance;
- Premiums received for federal insured flood insurance;
- Premiums received for reinsurance;
- Premiums received for title insurance; or
- Premiums received for workers’ compensation insurance.
||Locate Forms to Download
||Contact DOR Staff
If you have questions or require forms not included in this list please contact us.
Questions can be directed to the Kentucky Department of Revenue, Financial Tax Section, Station 61, PO Box 1303, Frankfort, KY 40602-1303 (502) 564-4810.