Kentucky City (Local) Income Tax Withholding

Reference Number: NFC-24-1709749757
Published: March 8, 2024
Effective: Pay Period 02, 2024


The city tax rate for Bowling Green, Covington and Florence, Kentucky, includes the following changes:

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

Tax Formula

City Name

State/City Codes

City Tax Status

Bowling Green 21/0350 Duty Station/mandatory
Covington 21/0800 Duty Station/mandatory
Florence 21/1150 Duty Station/mandatory
Frankfort 21/1220 Duty Station/mandatory
Lexington-Fayette 21/1980 Duty Station/mandatory
Louisville 21/2090 Duty Station/mandatory
Owensboro 21/2490 Duty Station/mandatory
Paducah 21/2520 Voluntary
Richmond 21/2750 Duty Station/mandatory

Withholding Formula (Effective Pay Period 02, 2024)

  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 city income tax withholding, multiply the gross annual wages by the appropriate city income tax percentage in the table below.


State/City Codes

Resident Percentage

Nonresident Percentage

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

Bowling Green 21/0350 2.00 2.00 DS
Covington 21/0800 2.45¹ 2.45¹ DS
Florence 21/1150 2.00² 2.00² DS
Frankfort 21/1220 1.95 1.95 DS, R
Lexington-Fayette 21/1980 2.25 2.25 DS
Louisville 21/2090 1.45 1.45 DS
Owensboro 21/2490 1.78 1.78 DS
Paducah (voluntary) 21/2520 2.00 2.00 N/A
Richmond 21/2750 2.00 2.00 DS

¹ Maximum withholding wage base of $168,600 (maximum annual withholding of $4,130.70).

² Maximum withholding wage base of $168,600 (maximum annual withholding of $3,372.00).

Note: City tax is mandatory unless otherwise indicated.

  1. Divide the annual Kentucky city income tax withholding calculated in step 2 by the number of pay dates in the tax year to obtain the biweekly Kentucky city income 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) Home page. Select the Publications tab and select Taxes from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin


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.