TAXES 17-25, Kentucky Cities (Local) Income Tax Withholding | National Finance Center

TAXES 17-25, Kentucky Cities (Local) Income Tax Withholding

Published: July 27, 2017
Effective: Pay Period 13, 2017

Summary

The city income tax withholding for residents and nonresidents has increased from 1.39 percent to 1.78 percent for Owensboro, Kentucky.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

City Name

State/City Codes

City Tax Status

Bowling Green

21/0350

Duty Station/mandatory

Covington

21/0800

Duty Station/voluntary

Florence

21/1150

Duty Station/mandatory

Frankfort

21/1220

Duty Station/mandatory

Lexington-Fayette

21/1980

Duty Station/mandatory

Louisville

21/2090

Duty Station/mandatory

Owensboro

21/2490

Duty Station/mandatory

Richmond

21/2750

Duty Station/mandatory

Withholding Formula (Effective Pay Period 13, 2017)

  1. Multiply the gross biweekly wages by 26 to obtain the annual wages.
  2. Apply the gross annual wages by multiplying the following guidelines to determine the annual Kentucky city income tax withholdings:

     City

    State/City Codes

    Resident Percentage

    Nonresident Percentage

    City Tax Status (Duty Station = DS Residence = R)

    Bowling Green

    21/0350

    1.85

    1.85

    DS

    Covington

    21/0800

    2.451

    2.451

    DS

    Florence

    21/1150

    2.002

    2.002

    DS

    Frankfort

    21/1220

    1.95

    1.95

    DS, R

    Lexington-Fayette

    21/1980

    2.25

    2.25

    DS

    Louisville

    21/2090

    1.45

    1.45

    DS

    Owensboro

    21/2490

    1.78

    1.78

    DS

    Paducah (voluntary)

    21/2520

    2.00

    2.00

     

    Richmond

    21/2750

    2.00

    2.00

    DS

    1 Maximum withholding wage base of $127,200 (maximum annual withholding of $3,116.40).

    2 Maximum withholding wage base of $127,200 (maximum annual withholding of $2,544.00).

    Note: City tax is mandatory unless otherwise indicated.

  3. Divide the annual Kentucky city income tax withholding calculated in step 2 by 26 to obtain the biweekly Kentucky city income tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or ServiceNow (SNOW) Customer Service Portal (CSP).