Kentucky Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Kentucky state income tax as a freelancer or 1099 contractor. Kentucky has a flat income tax rate of 4%.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,000
Total Tax Owed
$20,391

Summary

Total Income
$75,000
Total Taxes
-$20,391
After-Tax Income
$54,609
Effective Tax Rate(on total income)
27.2%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,098
Q2 (Apr-May)Due June 15
$5,098
Q3 (Jun-Aug)Due September 15
$5,098
Q4 (Sep-Dec)Due January 15 (next year)
$5,098
Each Quarterly Payment
$5,098

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,098. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Kentucky Tax Overview for Freelancers

Kentucky has a flat income tax rate of 4%. The state recently transitioned from a progressive system to a flat tax. Self-employed individuals in Kentucky pay federal self-employment tax (15.3%) plus federal income tax, and Kentucky state income tax on their net self-employment earnings.

Flat 4% rateNo tax on Social SecurityLower cost of living than neighbors

Self-Employment Taxes in Kentucky

If you work as a freelancer or independent contractor in Kentucky, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Kentucky state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Kentucky Income Tax for Freelancers

Kentucky has a flat income tax rate of 4%. The state recently transitioned from a progressive system to a flat tax.

Cost of Living for Freelancers in Kentucky

Kentucky's cost of living is about 13% below the national average. As a freelancer in Kentucky, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Kentucky Freelancers

  • Kentucky's flat 4% rate is competitive and simplifies your tax calculation
  • Kentucky has a lower cost of living than most of its neighbors
  • Kentucky does not tax Social Security benefits
  • Louisville and Lexington offer growing job markets with lower costs than nearby Nashville or Cincinnati

Key Kentucky Tax Features

  • Flat 4% rate
  • No tax on Social Security
  • Lower cost of living than neighbors

Model Your Kentucky Freelance Finances Over Time

This calculator shows your Kentucky tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Kentucky with Other States

Indiana3.05% top rateOhio3.5% top rateWest Virginia5.12% top rateCalifornia13.3% top rateNew York10.9% top rateTexasNo income tax

Frequently Asked Questions

How is self-employment tax calculated in Kentucky?
Self-employed workers in Kentucky pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Kentucky state income tax. Kentucky has a flat income tax rate of 4%. The state recently transitioned from a progressive system to a flat tax.
How much will I owe in quarterly taxes as a freelancer in Kentucky?
Your quarterly estimated tax payment in Kentucky depends on your total tax liability — including SE tax, federal income tax, and Kentucky state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Kentucky freelancers?
Freelancers in Kentucky can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Kentucky state taxable income, providing additional state tax savings.
Does Kentucky have any special taxes for self-employed workers?
Kentucky does not have a separate self-employment tax. However, your net self-employment income is subject to Kentucky's regular income tax (4% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Kentucky?
The decision to form an LLC or S-Corp in Kentucky depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Kentucky tax professional for advice specific to your situation.

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State Tax-$2,384
FICA + Medicare-$4,973
Net Pay$50,181
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