Louisville Local Income Tax: What It Means for Your Paycheck (2026)
Calculator scope: ExactTakeHome currently calculates federal and Kentucky state income tax. Local income taxes are not included in the calculator.
What is Louisville's Local Income Tax?
Louisville levies a occupational license tax on earned wages at 2.2% for residents. Jefferson County occupational license tax on wages for work in Louisville Metro. According to Louisville Metro Revenue Commission, 2026, the Louisville occupational license tax rate for residents is 2.2% as of 2026.
How Much Does Louisville's Local Tax Cost?
| Annual Salary | Estimated Local Tax (2.2%) | Monthly Local Tax |
|---|---|---|
| $40,000 | $880 | $73 |
| $60,000 | $1,320 | $110 |
| $75,000 | $1,650 | $138 |
| $100,000 | $2,200 | $183 |
| $150,000 | $3,300 | $275 |
These are estimates of the local tax component only. Your total paycheck deductions also include federal income tax, Social Security, Medicare, and Kentucky state income tax.
Calculate Your Federal and State Taxes
ExactTakeHome currently calculates federal and Kentucky state income tax for Louisville residents. To estimate your take-home pay excluding local tax, use the Kentucky calculator and add the local tax amount from the table above for a full planning estimate.
Does Louisville's Local Tax Apply to Remote Workers?
Louisville Metro occupational tax generally applies to wages from work performed in Jefferson County. Remote workers should confirm whether wages are treated as Louisville-sourced with the Metro Revenue Commission.
Frequently Asked Questions
2.2% occupational license tax for residents. Source: Louisville Metro Revenue Commission, 2026.
Residents of Louisville and workers who earn wages from work performed in Louisville may owe local income tax. Rules vary by residence and work location — verify with Louisville Metro Revenue Commission.
An estimated $1,650 per year ($138 per month) at the 2.2% rate. This is an estimate of the local component only.
No. ExactTakeHome currently calculates federal and Kentucky state income tax. Local income taxes are not included in the calculator.
Use the Kentucky calculator on ExactTakeHome for federal and state withholding, then subtract the estimated local tax from the table on this page for a planning estimate.