Kentucky City (Local) Income Tax Withholding
Reference Number: NFC-26-1769804374
Published: March 3, 2026
Effective: Pay Period 02, 2026
Summary
The income tax withholding for the cities of Covington and Florence, Kentucky, includes the following changes:
- The maximum withholding wage base has increased for both cities from $176,100 to $184,500 to coincide with the 2026 Federal Old-Age, Survivors, and Disability Insurance wage base.
- For Covington: The maximum tax is $4,520.25.
- For Florence: The maximum tax is $3,690.
All other information remains the same. 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 |
21/035 |
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 |
21/249 |
Duty Station/mandatory |
|
Paducah |
21/2520 |
Voluntary |
|
Richmond |
21/2750 |
Duty Station/mandatory |
Withholding Formula (Effective Pay Period 02, 2026)
- 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
2.0
2.00
N/A
Richmond
21/2750
2.00
2.00
DS
¹ Maximum withholding wage base of $184,500 (maximum annual withholding of $4,520.25).
² Maximum withholding wage base of $184,500 (maximum annual withholding of $3,690.00).
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 Library 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 portals at ServiceNow Portal for Federated Users and ServiceNow Portal for Non-Federated Users.