{
  "$comment": "Kentucky 2025: flat 4.00% on federal AGI less the standard deduction (KRS 141.020, 141.081); family size tax credit (KRS 141.066).",
  "country": "us",
  "jurisdiction": "us-ky",
  "taxYear": "2025",
  "period": {
    "start": "2025-01-01",
    "end": "2025-12-31",
    "tz": "America/New_York"
  },
  "status": "provisional",
  "engine": "us-payroll@1",
  "currency": "USD",
  "revision": 1,
  "params": {
    "incomeTax": {
      "kind": "brackets",
      "incomeBase": "stateWages",
      "brackets": {
        "single": [
          {
            "upTo": null,
            "rate": "0.04"
          }
        ],
        "mfj": [
          {
            "upTo": null,
            "rate": "0.04"
          }
        ],
        "mfs": [
          {
            "upTo": null,
            "rate": "0.04"
          }
        ],
        "hoh": [
          {
            "upTo": null,
            "rate": "0.04"
          }
        ]
      },
      "deductions": [
        {
          "type": "fixed",
          "id": "standard-deduction",
          "label": "Kentucky standard deduction",
          "amount": {
            "single": "3270",
            "mfj": "3270",
            "mfs": "3270",
            "hoh": "3270"
          }
        }
      ],
      "credits": [
        {
          "type": "percentOfTax",
          "id": "family-size-tax-credit",
          "label": "Family size tax credit (family size from filing status only)",
          "schedule": {
            "single": [
              {
                "agiUpTo": "15650",
                "value": "1"
              },
              {
                "agiUpTo": "16276",
                "value": "0.9"
              },
              {
                "agiUpTo": "16902",
                "value": "0.8"
              },
              {
                "agiUpTo": "17528",
                "value": "0.7"
              },
              {
                "agiUpTo": "18154",
                "value": "0.6"
              },
              {
                "agiUpTo": "18780",
                "value": "0.5"
              },
              {
                "agiUpTo": "19406",
                "value": "0.4"
              },
              {
                "agiUpTo": "19876",
                "value": "0.3"
              },
              {
                "agiUpTo": "20345",
                "value": "0.2"
              },
              {
                "agiUpTo": "20815",
                "value": "0.1"
              },
              {
                "agiUpTo": null,
                "value": "0"
              }
            ],
            "mfj": [
              {
                "agiUpTo": "21150",
                "value": "1"
              },
              {
                "agiUpTo": "21996",
                "value": "0.9"
              },
              {
                "agiUpTo": "22842",
                "value": "0.8"
              },
              {
                "agiUpTo": "23688",
                "value": "0.7"
              },
              {
                "agiUpTo": "24534",
                "value": "0.6"
              },
              {
                "agiUpTo": "25380",
                "value": "0.5"
              },
              {
                "agiUpTo": "26226",
                "value": "0.4"
              },
              {
                "agiUpTo": "26861",
                "value": "0.3"
              },
              {
                "agiUpTo": "27495",
                "value": "0.2"
              },
              {
                "agiUpTo": "28130",
                "value": "0.1"
              },
              {
                "agiUpTo": null,
                "value": "0"
              }
            ],
            "mfs": [
              {
                "agiUpTo": "15650",
                "value": "1"
              },
              {
                "agiUpTo": "16276",
                "value": "0.9"
              },
              {
                "agiUpTo": "16902",
                "value": "0.8"
              },
              {
                "agiUpTo": "17528",
                "value": "0.7"
              },
              {
                "agiUpTo": "18154",
                "value": "0.6"
              },
              {
                "agiUpTo": "18780",
                "value": "0.5"
              },
              {
                "agiUpTo": "19406",
                "value": "0.4"
              },
              {
                "agiUpTo": "19876",
                "value": "0.3"
              },
              {
                "agiUpTo": "20345",
                "value": "0.2"
              },
              {
                "agiUpTo": "20815",
                "value": "0.1"
              },
              {
                "agiUpTo": null,
                "value": "0"
              }
            ],
            "hoh": [
              {
                "agiUpTo": "21150",
                "value": "1"
              },
              {
                "agiUpTo": "21996",
                "value": "0.9"
              },
              {
                "agiUpTo": "22842",
                "value": "0.8"
              },
              {
                "agiUpTo": "23688",
                "value": "0.7"
              },
              {
                "agiUpTo": "24534",
                "value": "0.6"
              },
              {
                "agiUpTo": "25380",
                "value": "0.5"
              },
              {
                "agiUpTo": "26226",
                "value": "0.4"
              },
              {
                "agiUpTo": "26861",
                "value": "0.3"
              },
              {
                "agiUpTo": "27495",
                "value": "0.2"
              },
              {
                "agiUpTo": "28130",
                "value": "0.1"
              },
              {
                "agiUpTo": null,
                "value": "0"
              }
            ]
          }
        }
      ]
    },
    "conformity": {
      "k401": true,
      "k403b": true,
      "k457": true,
      "hsa": true,
      "healthFsa": true,
      "dependentCareFsa": true,
      "section125": true
    },
    "programmes": []
  },
  "rounding": {
    "unit": "0.01",
    "mode": "halfUp",
    "stage": "perLine"
  },
  "knownCliffs": [
    {
      "id": "ky-family-size-tax-credit-steps",
      "field": "params.incomeTax.credits.0",
      "description": "Family size tax credit percentage steps down (100% → 90% → … → 10% → 0%) at fixed modified-gross-income thresholds; crossing a threshold by $1 can raise tax by up to 10% of the tax liability."
    }
  ],
  "notModelled": [
    "Family size tax credit: family size is taken from filing status only (single/MFS = 1, MFJ/HoH = 2); additional qualifying children (family size up to 4) raise the thresholds and are not reflected, so the credit is understated for families with children",
    "Married couples filing separately on a combined return (Filing Status 4) get a $3,270 standard deduction per spouse; MoneyOtter's MFJ models a joint return (one deduction)",
    "Local occupational license taxes (city/county, e.g. Louisville Metro, Lexington-Fayette) — not modelled",
    "Itemized deductions, child and dependent care credit (20% of federal), education tuition credit, personal tax credits for age 65+/blind/National Guard",
    "Kentucky did not adopt the 2025 federal tips/overtime/car-loan deductions (IRC conformity date 31 Dec 2024); starting point federal AGI is unaffected"
  ],
  "sources": [
    {
      "field": "period",
      "url": "https://revenue.ky.gov/Forms/740%20Packet%20Instructions.pdf",
      "title": "Kentucky DOR — 2025 individual income tax (calendar year)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.kind",
      "url": "https://revenue.ky.gov/Forms/740%20Packet%20Instructions.pdf",
      "title": "Graduated/flat income tax on wages: Kentucky DOR — 2025 flat individual income tax rate 4.00%",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.incomeBase",
      "url": "https://revenue.ky.gov/Forms/740%20Packet%20Instructions.pdf",
      "title": "Kentucky DOR — 2025 Form 740 instructions: Kentucky AGI starts from federal adjusted gross income (Schedule M modifications)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://revenue.ky.gov/Forms/740%20Packet%20Instructions.pdf",
      "title": "Kentucky DOR — 2025 flat individual income tax rate 4.00%",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://revenue.ky.gov/News/Pages/Kentucky-DOR-Announces-2025-Standard-Deduction.aspx",
      "title": "Kentucky DOR — 2025 standard deduction $3,270",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://revenue.ky.gov/Forms/740%20Packet%20Instructions.pdf",
      "title": "Kentucky DOR — 2025 standard deduction $3,270 (joint return: one deduction)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.credits",
      "url": "https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49188",
      "title": "KRS 141.066 — family size tax credit: 100% at or below the federal poverty level for the family size, stepping to 10% at 133%, 0% above",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.credits",
      "url": "https://revenue.ky.gov/Documents/FSTC%20Table_TY2025.pdf",
      "title": "Kentucky DOR — 2025 Family Size Tax Credit table",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.conformity",
      "url": "https://revenue.ky.gov/Forms/740%20Packet%20Instructions.pdf",
      "title": "Kentucky DOR — Form 740 starts from federal AGI (W-2 wages already exclude 401(k)/403(b)/457(b) deferrals and cafeteria-plan/HSA salary reductions); no Kentucky add-back for these",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.programmes",
      "url": "https://revenue.ky.gov/Business/Pages/Employer-Payroll-Withholding.aspx",
      "title": "Kentucky DOR — employer payroll withholding (no employee-paid state payroll programme; UI is employer-paid)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "rounding",
      "url": "https://revenue.ky.gov/Forms/740%20Packet%20Instructions.pdf",
      "title": "MoneyOtter rounds lines to the cent",
      "retrieved": "2026-10-07"
    }
  ]
}