Comprehensive salary data, cost of living, tax rates, and employment information for Kentucky.
Reviewed by Alexander O.M., MBA, BSc Engineering•Updated
Kentucky's $60,407 median household income is below the national average, but the cost-of-living index of 90 means effective purchasing power is closer to the middle of the US pack. The state's economy is anchored by three unusual pieces of infrastructure: UPS WorldPort in Louisville — the largest automated package-handling facility in the world, sorting over two million packages per day — Toyota Motor Manufacturing Kentucky in Georgetown (the company's largest vehicle-production plant globally), and the bourbon-distilling industry (Kentucky produces roughly 95% of the world's bourbon). Louisville and Lexington are the primary economic centres; Louisville's healthcare cluster, led by Humana, is among the largest in the South. The state income tax was a flat 4.5% and is scheduled to continue stepping down toward 4% under enacted law tied to revenue triggers. The $7.25/hour minimum wage remains at the federal floor. Eastern Kentucky (the coal-producing Appalachian counties) has a very different economy; employment has declined sharply over the past two decades as coal demand has contracted. Property taxes are low. Full income, tax, and employer breakdown follows.
Median Individual
$31,730
per year
Median Household
$60,407
per year
Cost of Living
90
Affordable (US avg = 100)
State Income Tax
4.5%
rate
Salary Overview for Kentucky
The median individual income in Kentucky is $31,730 per year, while the mean (average) individual income is $42,010. The median household income is $60,407.
Cost of Living Adjusted Salary
Kentucky's cost of living index is 90 (national average = 100). This means the median salary of $31,730 in Kentucky has the purchasing power of approximately $35,256 at the national average cost of living. Your dollar goes further in Kentucky than in most states.
Minimum Wage in Kentucky
The current minimum wage in Kentucky is $7.25/hour, which equals approximately $15,080 per year for a full-time worker (40 hours/week, 52 weeks). See our complete Kentucky minimum wage guide for tipped wages, scheduled increases, and more.
Top Employers in Kentucky
UPS WorldPort
Humana
University of Kentucky
Major Industries in Kentucky
Logistics
Healthcare
Manufacturing
Tax Rates in Kentucky
See the full tax breakdown including income tax, sales tax, property tax, and more on our Kentucky tax rates page.
Calculate Your Take-Home Pay
Use our Salary Calculator to convert between hourly, weekly, monthly, and annual pay, and estimate your take-home pay in Kentucky after federal and state taxes.