TAXES 19-03, Kentucky State Income Tax Withholding

Published: February 13, 2019
Effective: Pay Period 26, 2018


The annual allowance amount, per exemption claimed, has increased from $2,530 to $2,590 for the State of Kentucky. No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:


State Tax Withholding State Code:


Acceptable Exemption Form:


Basis for Withholding:

N/A / Flat Rate

Acceptable Exemption Data:


TSP Deferred:


Special Coding:


Additional Information:


Withholding Formula (Effective Pay Period 26, 2018)

  1. Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Subtract the standard deduction of $2,590 from the result of step 4 to compute the taxable income.
  6. Apply the flat tax rate of 5 percent to the annual taxable wages in step 5 to determine the annual tax amount.
  7. Divide the annual Kentucky tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Kentucky tax withholding.


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.

Previous Tax Bulletin


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