Paducah – McCracken County Taxes

Tax TypeCalculationsDescriptionFor More Information
Corporate Income Tax / Franchise Tax Flat 5% State taxes in Kentucky are administered by the Department of Revenue. . Most types of businesses in Kentucky are required to register with the Department of Revenue. For more information and to register, visit the Start section of the Kentucky Business One Stop. Kentucky One Stop Business Portal
Local Occupation Tax Varies based on location Employers are responsible for withholding an occupational license tax on the gross wages of their employees. If a business is located within the city of Paducah, the rate is 2% of gross wages. If a business is located in McCracken County but not within the city, the rate is 1% of gross wages. -
Permitting and Fees Varies Building and electrical permits are required at a local level City of Paducah

McCracken County Inspection Department
Personal Income Tax Flat 5% In 2018, Kentucky tax brackets were replaced with a flat 5% tax rate. See the Kentucky Department of Revenue Website for additional personal tax information. Kentucky Department of Revenue
Real Property & Personal Property Tax Varies based on location McCracken County PVA is responsible for locating all taxable property in the County and establishing its value. McCracken County PVA
Sales & Use Tax 6% The sales/use tax is 6% of gross receipts on purchase price. Exclusions include groceries and prescription drugs Kentucky Department of Revenue
Unemployment Insurance Varies New employer rate: 2.7%
Minimum earned tax rate: 0.30%
Maximum earned tax rate: 9.0%
Taxable wage base: $10,200 and 0.75% surcharge
Maximum Taxable Amount: $10,200
Kentucky Department of Revenue
Workers Compensation Varies Insurance is required. Commonwealth of Kentucky Labor Cabinet

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