Kentucky’s individual income tax rate is set to remain the same in 2025.
The commonwealth failed to meet certain fiscal requirements that would have ushered in another reduction under a Republican plan to phase the tax out.
However, key GOP lawmakers say the legislation is working as intended.
A recent report from the state budget director states the Kentucky failed to meet both of the requirements required to trigger another tax rate cut in 2025.
The conditions were met for 2023 and 2024, triggering half-percentage-point cuts in the state income tax for those years.
The rate is currently set to drop to 4% at the start of 2024.
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