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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 Kentucky Revised Statutes Chapter 136 and Chapter 304.​

136.330 Tax on premium receipts life insurance company -- Exception.
136.340 Tax on amounts paid to stock insurance companies, other than life.
136.350 Tax on amounts to mutual companies, other than life and Lloyd's insurers.
136.360 Tax on amounts paid to stock insurance, to defray cost of administering fire prevention and insurance laws.
136.377 Filing of declaration of estimated tax by company -- Payment -- Penalty.
136.381 Reports and payments due notwithstanding dissolution or retirement.
136.390 Tax on insurance companies other than stock or mutual.
299.530 Annual report on reinsurance premiums -- Tax on premiums paid to unauthorized companies.
304.3-270 Retaliatory provision.
304.4-030 Tax as to unauthorized reinsurance.
304.11-050 Premium tax on unauthorized insurer.
304.49-220 Tax levied on premium receipts -- Rates -- Exclusivity of premium tax -- Distribution of revenue for administration of KRS 304.49-010 to 304.49-230.

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Department of Insurance


Pay Insurance Premiums Tax / Surcharge

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

Mail a check or money order made payable to "KY State Treasurer" to
     KY Department of Revenue
     PO Box 1303
     Frankfort, KY 40602-1303

Overnight Address
     KY Department of Revenue
     501 High Street
     Frankfort, KY 40601-2103


All tax payment and e-file options

​​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.​​

Insurance Premiums Tax and Surcharge

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

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