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How Lexington, Kentucky Income Tax & Salary Deductions Work
Lexington, the Horse Capital of the World, is a thriving university city surrounded by iconic bluegrass horse farms. Home to the University of Kentucky, Lexington offers a high quality of life with affordable living and a growing technology sector.
Did you know? Lexington is surrounded by over 450 horse farms and is the center of the thoroughbred horse industry. The city's bourbon trail and horse country attract visitors from around the world.
The median household income in Lexington is approximately $58,000, with strong employment in higher education, healthcare, equine industry, technology, manufacturing, and automotive (Toyota).
Understanding Your Lexington, Kentucky Paycheck Deductions
When you receive your paycheck in Lexington, Kentucky, several deductions are automatically taken out. These include federal income tax, state income tax, local taxes, Social Security, and Medicare. Our calculator breaks down each of these components so you can see exactly where your money goes.
Lexington, Kentucky Federal & State Tax Rates 2026
The tax rates in Lexington, Kentucky are determined by multiple factors including your income level, filing status, and location. Federal taxes apply to all US residents, while state and local taxes vary significantly by location. Use our calculator above to see your personalized tax breakdown.
Where Your Money Goes in Lexington, Kentucky
74.2%
11.7%
6.2%
1.5%
4.0%
2.5%
Net Pay
$55,627
Federal Tax
$8,761
Social Security
$4,650
Medicare
$1,088
State Tax
$3,000
Local Tax
$1,875
| Tax Type | Rate | Amount |
|---|---|---|
| Federal Tax | 11.68% | $8,761 |
| Social Security | 6.20% | $4,650 |
| Medicare | 1.45% | $1,088 |
| State Tax | 4.00% | $3,000 |
| Local Tax | 2.50% | $1,875 |
| Total Tax | 25.83% | $19,373 |
Salary Calculators Near Lexington, Kentucky
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Frequently Asked Questions
On a salary of $75,000 in Lexington, Kentucky, you would pay approximately $19,373 in total taxes, which represents an effective tax rate of 25.83%. This includes all applicable federal, state, and local taxes, as well as social insurance contributions.
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