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Individual Income Tax is due on all income earned by Kentucky residents and all income earned by nonresidents from Kentucky sources.

Kentucky's individual income tax law is based on the Internal Revenue Code in effect as of December 31, 2017. The tax rate is five (5) percent and allows itemized deductions and certain income reducing deductions as defined in KRS 141.019​. A full-year resident of Kentucky files Form 740 and a person who moves into or out of Kentucky during the year or is a full-year nonresident files Form 740-NP.

Individual income tax laws are found in Chapter 141 of the Kentucky Revised Statutes.​​

Pay Income Tax

To File a Return


Pay a Return

     Kentucky Department of Revenue
     PO Box 856980
     Louisville, KY 40285-6980

Refund/Other Returns/Certified Mail
     Kentucky Department of Revenue
     PO Box 856970
     Louisville, KY 40285-6970

Overnight Address
     Kentucky Department of Revenue
     6716 Grade Lane, Suite 910
     Louisville, KY  40213-3439


To Pay a Bill, Make an Estimated Payment or Pay an Electronic Payment Voucher

Electronic payment: Choose to pay directly from your bank account or by credit card.  Service provider fees may apply.

If paying by check or money order, make it payable to "KY State Treasurer" and mail to
     KY Department of Revenue
     Frankfort, KY  40619-0008




All tax payment and e-file options

Common Kentucky Individual Income Tax Credits

There are four common nonrefundable individual income tax credits available for taxpayers when the tax return is filed.


​Personal Credits

Personal tax credits are reported on Schedule ITC and submitted with Form 740 or 740-NP.

A $40 tax credit is allowed for each individual reported on the return who is age 65 or over. Also, a $40 tax credit is allowed if an individual is legally blind. Persons who are both age 65 or older and legally blind are eligible for both tax credits for a total of $80 per person.

M​embers of the Kentucky National Guard may claim a tax credit of $20; military reserve members are not eligible.

KRS 141.020

​Nonrefundable Family Size Tax Credit

The family size tax credit is based on modified gross income and the size of the family. If total modified gross income is $33,383 or less for 2018, you may qualify for the Kentucky family size tax credit.

KRS 141.066

​Education Tuition Tax Credit

A credit equal to 25 percent of the amount of the federal American Opportunity Credit and the Lifetime Learning Credit is available. The credit applies only to undergraduate studies, phases out for higher incomes, applies to most higher education opportunities within Kentucky and may be carried forward for up to five (5) years.

KRS 141.069

​Child and Dependent Care Credit

Kentucky taxpayers claiming the child and dependent care credit will claim this credit on Form 740 or 740-NP. The credit is claimed on line 25 of Form 740 or Form 740-NP by entering the amount of the federal credit from federal Form 2441 and multiplying by 20 percent.

KRS 141.067


To learn more about the credits available on the federal income tax return, including the earned income tax credit (EITC), please visit www.irs.gov.

FORM 1099-G

If you received a Kentucky income tax refund last year, we’re required by federal law to send Form 1099-G to you to remind you that the state refund must be reported as income on your federal tax return if you itemize deductions.

When you itemize deductions on your federal return you are allowed to deduct state income taxes or sales taxes that you paid during the year. This deduction reduces your federal taxable income. If any part of the state income tax you deducted on your federal return is later refunded to you that amount must be reported as taxable income for the year in which the refund is issued.

Form 1099-G reflects all Kentucky refunds that were credited to you for last year, including refunds from amended returns and prior year returns. The form will include any or all of your refund that was applied to the following:

  • estimated tax account
  • use tax
  • child support debt
  • delinquent tax liability or another bill

Even if your refund was applied to offset a bill or make a donation federal law maintains that you received the benefit of the refund and you must report it as income.

You don’t need to attach the Form 1099-G to your federal or state income tax returns. Just keep it for your records. If you use a professional tax preparer, please give the form to your preparer, along with your W-2s and other tax information. If your address on the form is incorrect or you have other questions, please contact the Kentucky Department of Revenue.​​​​​​


Use Tax on Individual Income Tax Return

Kentucky use tax may be due on internet, mail order, or other out-of-state purchases made throughout the year.  Please click here to see if you are required to report Kentucky use tax on your individual income tax return. 

Also see line 27 of Form 740 and the optional use tax table and use tax calculation worksheet in the 740 Packet. The current year Form 740 and 740 Packet can be found on the Forms Page.

Individual Income Tax

The Kentucky Department of Revenue conducts work
under the authority of the Finance and Administration Cabinet.