Dentons SALTS Insights: Kentucky Tax Developments: Fall 2022

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Dentons SALTS Insights: Kentucky Tax Developments: Fall 2022

Dentons SALTS Insights: Kentucky Tax Developments: Fall 2022

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November 4, 2022

There are several notable tax developments from the Kentucky 2022 regular session, including House Bill 8 (“HB 8”), which passed over the Governor’s veto. HB 8 includes a proposal to reduce the individual income tax. Rather than reducing the individual income tax outright, HB 8 establishes a rate reduction evaluation, with any potential tax rate reduction beginning on January 1, 2023. Because Kentucky was able to reach the appropriate revenue threshold by September 5, 2022, the income tax rate will be reduced to 4.5% for the 2023 tax year.

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