Kentucky County (Local) Income Tax Withholding

Reference Number: NFC-23-1678458200
Published: March 3, 2023
Effective: Pay Period 02, 2023

Summary

The income tax withholding for Boone County and Kenton County, Kentucky, includes the following changes:

  • The maximum taxable wage base for Boone County will increase from $67,179.00 to $72,906.00.
  • The maximum annual tax for Boone County will increase from $537.43 to $583.25.
  • The maximum taxable wage base for Kenton County will increase from $147,000 to $160,200 to coincide with the 2023 Federal Old-Age, Survivors, and Disability Insurance (OASDI) wage base.
  • The lower taxable wage base limit for Kenton County will increase from $25,000 to $80,100.
  • The maximum annual tax for Kenton County will increase from $311.26 to $816.54.

The following tax rates for Boone County and Kenton County, Kentucky, includes the following changes:

  • The tax rates for Boone County remains at 0.8 percent.
  • The tax rate for Kenton County will change from 0.7097 percent to 0.9097 percent on the wages up to $80,100.
  • The tax rate for Kenton County remains at 0.1097 percent on wages greater than $80,100 and up to the OASDI wage maximum of $160,200.

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

Tax Formula

County Name

State/County Codes

County Tax Status

Boone

21/015

Duty Station/mandatory

Clay

21/051

Duty Station/voluntary

Jefferson

21/111

Duty Station/mandatory

Kenton

21/117

Duty Station/mandatory

Madison

21/151

Duty Station/mandatory

McCracken

21/145

Duty Station/mandatory

Withholding Formula (Effective Pay Period 02, 2023)

  1. Multiply the gross biweekly wages by the number of pay dates in the tax year to obtain the annual wages.
  2. To determine the annual Kentucky County income tax withholding, multiply the gross annual wages by the appropriate county income tax percentage in the table below.

    County Name

    State/County Codes

    Resident Percentage

    Nonresident Percentage

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

    Boone

    21/015

    0.8%1

    0.8%1

    DS

    Clay (voluntary)

    21/051

    1.00%

    1.00%

    DS

    Jefferson

    21/111

    2.20%

    1.45%

    DS

    Kenton

    21/117

    0.9097%2

    0.9097%2

    DS

    Madison

    21/151

    1.00%

    1.00%

    DS

    McCracken

    21/145

    1.00%

    1.00%

    DS

    1 Maximum taxable wage base of $72,906 (maximum annual tax of $583.25) applies to the 0.8 percent occupational tax. Maximum taxable wage base of $16,666 (maximum annual tax of $25) applies to the 0.15 percent Senior Citizen and Mental Health Tax.

    2 Maximum taxable wage base of $160,200 (maximum annual tax of $816.54) applies to the 0.9097 percent occupational tax. The lower taxable wage base limit is increasing from $25,000 to $80,100. The payroll tax rates is changing from 0.7097 percent to 0.9097 percent on wages up to $80,100, and the payroll tax rate is 0.1097 percent on wages greater than $80,100 and up to the OASDI wage maximum of $160,200.

  3. Divide the annual Kentucky County income tax withholding calculated in step 2 by the number of pay dates in the tax year to obtain the biweekly Kentucky County 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) Home page. 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 via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.