The Kentucky House voted 90-7 to lower the state’s individual income tax rate on Thursday.
Republicans delivered on a top priority just three days into this year’s 30-day legislative session as they moved on House Bill 1. The bill would lower the tax to 3.5% from 4% at the beginning of 2026.
Since Republican lawmakers passed a tax overhaul in 2022, the individual income tax in Kentucky has gradually been reduced by increments of a half-percentage point, conditioned on meeting benchmarks that ensure revenues are sufficient to meet state spending needs. The ultimate goal is to eliminate income tax in Kentucky…