Why incorporate in Kentucky?
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Cost of living
Personal Income Tax
Kentucky's personal income tax system consists of five brackets with a top rate of 6% starting at $8,000.
Personal Property Tax
Taxable. The state imposes a tax on intangible personal property. Kentucky is one of the 38 states that collect property taxes at both the state and local levels.
State Sales and Use Tax
Base Rate: 6%
Machinery Rate: none
There is an exemption for machinery for new and expanding industry. This excludes repair, replacement or spare parts.
Kentucky new employers' rate is 2.7% for 3 years.
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