Employer payroll taxes in Kentucky for 2026
On top of each paycheck, a Kentucky employer pays these taxes. None of them come out of the employee's pay. On a $60,000 salary they add $4,956.00 a year, so the employee costs $64,956.00.
| Employer tax | Rate | Wages taxed |
|---|---|---|
| Social Security | 6.2% | First $184,500 |
| Medicare | 1.45% | No limit |
| Federal unemployment (FUTA) | 0.6% | First $7,000 |
| Kentucky unemployment (SUTA) | 2.7% for new employers | First $12,000 |
Kentucky unemployment tax (SUTA)
Kentucky employers pay state unemployment tax on the first $12,000 of each employee's wages in 2026. A new employer starts at 2.7%, and experienced employers pay from 0.3% to 9% depending on their layoff history.
New employers pay 2.7% for their first three years. New construction employers start at the top rate.
What an employee costs in Kentucky
Yearly employer taxes and total cost for a single filer paid every two weeks, at the new-employer unemployment rate, for an employer with 10 employees. Benefits and workers' compensation insurance are extra.
| Salary | Employer taxes | Total cost | Added to pay | Employee take-home |
|---|---|---|---|---|
| $30,000 | $2,661.00 | $32,661 | 8.9% | $25,353 |
| $40,000 | $3,426.00 | $43,426 | 8.6% | $33,038 |
| $50,000 | $4,191.00 | $54,191 | 8.4% | $40,723 |
| $60,000 | $4,956.00 | $64,956 | 8.3% | $48,408 |
| $75,000 | $6,103.50 | $81,104 | 8.1% | $59,085 |
| $100,000 | $8,016.00 | $108,016 | 8% | $75,798 |
| $125,000 | $9,928.50 | $134,929 | 7.9% | $92,446 |
| $150,000 | $11,841.00 | $161,841 | 7.9% | $108,659 |
Withholding from Kentucky paychecks
From the employee's pay you withhold federal income tax under the W-4, 6.2% Social Security, 1.45% Medicare and Kentucky income tax. Employees checking their own pay can use the Kentucky paycheck calculator. Running a bonus? Use the bonus payroll calculator.
Kentucky employer taxes compared with nearby states
The same $60,000 employee, at each state's new-employer unemployment rate. Of the states that border Kentucky, Tennessee has the lowest employer taxes.
| State | State unemployment | All employer taxes | Total cost |
|---|---|---|---|
| Kentucky | $324.00 | $4,956.00 | $64,956 |
| Illinois payroll calculator | $477.38 | $5,109.38 | $65,109 |
| Indiana payroll calculator | $237.50 | $4,869.50 | $64,870 |
| Missouri payroll calculator | $213.84 | $4,845.84 | $64,846 |
| Ohio payroll calculator | $256.50 | $4,888.50 | $64,889 |
| Tennessee payroll calculator | $189.00 | $4,821.00 | $64,821 |
| Virginia payroll calculator | $204.00 | $4,836.00 | $64,836 |
| West Virginia payroll calculator | $256.50 | $4,888.50 | $64,889 |
Sources
Kentucky unemployment and program rates come from the state's own 2026 figures: ui.ky.gov, ui.ky.gov, ui.ky.gov. Federal figures follow IRS Publication 15 and Publication 15-T. See how we calculate for the withholding method.