The state previously had progressive tax rates ranging from 2% to 6%, but changed to a flat rate system during a tax reform in early 2018. Regardless of their filing status, Kentuckians are taxed at a flat rate of 4.5%. The same goes for any money you choose to put in a health savings account (HSA), flexible spending account (FSA) or commuter benefit program. Similarly, if you contribute to company-sponsored retirement plans like a 401(k) or Roth IRA, that money is subtracted from your paycheck. If you have health or life insurance policies through your employer, those premiums are deducted from your wages. Having dependents also affects your taxes.Īlmost everyone has to pay federal income and FICA taxes, but there are other monies that you may opt to have taken out of your paycheck. head of household), it will affect how much you owe in taxes. Regardless of how you file your taxes (e.g. One factor that will affect the amount of taxes withheld from your pay is your marital status. It's important to note that the updated version removes the use of allowances, employing in its place a five-step process that requires filers to input annual dollar amounts to prove personal information and additional income. Situations requiring a new W-4 include getting married or having a child. Therefore, you need to fill out a new one whenever you start a new job or if you need to make any changes during the year. This is the form that tells your employer how much of your money to withhold in taxes.

How much you pay in federal income taxes depends on the information you filled out on your Form W-4.

That threshold rises to $250,000 for married couples filing jointly. If your filing status is single or head of household, earnings that exceed $200,000 are subject to an additional 0.9% in Medicare tax. The Medicare tax is 1.45% of your wages and Social Security is 6.2%. Each month, you pay into these systems so you can reap the benefits during retirement. FICA taxes comprise Medicare and Social Security taxes. Federal income taxes will go to the IRS, where it counts toward your annual income taxes. Whenever you get paid, regardless of which state you call home, your employer will withhold federal income and FICA taxes from your paycheck. Number of cities and counties that have local income taxes: 218.Median household income: $60,183 (U.S.

2021 kentucky income tax brackets