Kentucky City (Local) Income Tax Withholding
Reference Number: NFC-25-1738702418
Published: February 5, 2025
Effective: Pay Period 26, 2024
Summary
The income tax withholding for Covington and Florence, Kentucky, includes the following changes:
- The maximum withholding for Covington, Kentucky, wage base is increasing from $168,600 to $176,100 to coincide with the 2025 Federal Old-Age, Survivors, and Disability Insurance (OASDI) wage base. The payroll tax rate remains at 2.45%. The maximum tax is $4,314.45.
-
The maximum withholding for Florence, Kentucky, wage base is increasing from $168,600 to $176,100 to coincide with the 2025 Federal OASDI wage base. The payroll tax rate remains at 2.00%. The maximum tax is $3,522.00.
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 26, 2024)
- Multiply the gross biweekly wages by the number of pay dates in the tax year to obtain the annual wages.
- 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.
|
City |
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 $176,100 (maximum annual withholding of $4,314.45).
² Maximum withholding wage base of $176,100 (maximum annual withholding of $3,522.00).
Note: City tax is mandatory unless otherwise indicated.
- 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.
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 Taxes 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.