Income taxes range from 2% to 6% with a $2360 standard deduction, and an exemption credit of $20 per person. Social security and some pensions are exempt. Sales tax is a flat 6%. Kentucky has an inheritance tax, but only if the proceeds are not going to immediate family members.
Corporate tax rates range from 4% to 6%. Pass through entities are required to file a return and withhold tax on shareholders and partners payments, if tax liability appears to pass $500. There is an attractive tax credit for historic preservation available to business and real estate developers. Kentucky tax and business formation information can be found at: http://revenue.ky.gov/.