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The House of Representatives in Frankfort, Kentucky, on Feb. 27, 2024. Photo by Arden Barnes. Photo courtesy of Kentucky Lantern.

Barren Countians to see a 3.5% income tax rate in 2026

Jan 1, 2026 | 12:00 PM

STAFF REPORT
Glasgow News 1

Barren Countians will now pay less in state income taxes this year.

As previously reported by Glasgow News 1, Kentucky Governor Andy Beshear signed House Bill 1 into law on Feb. 6 after a nearly unanimous passage in Kentucky’s House of Representatives and Senate, according to the Legislative Research Commission. The now-law reduces the individual state income tax by half a percentage point, going from 4 percent to 3.5 percent on Jan. 1, 2026.

This half-a-percentage point decrease is just the latest step on the Republican supermajority’s path to reduce the tax to zero. They reduced the rate from 5 percent to 4.5 percent in 2022 and another half a percentage point in 2023.

It seems unlikely Barren Countians will see another tax reduction during this legislative session as the state missed one of the two “triggers” set up allowing state legislators to consider a half-point decrease during the 2024-25 fiscal year.

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