Kentucky

Poor Families in Kentucky Are Hit Harder by the Income Tax Than Those in Most Other States

 

Kentucky’s 1999 income tax threshold — the income level at which families begin paying income tax:	Ranking among 42 states with income taxes
For two-parent families of four: $5,200.	2nd lowest
For single-parent families of three: $5,000.	2nd lowest (tie)
Kentucky’s 1999 income tax on working-poor and near-poor families:
For families of four with incomes at the poverty line ($17,028): $555.	Highest
For families of three with incomes at the poverty line ($13,290): $334.	2nd highest
For families of three with minimum-wage earnings ($10,712): $221.	Highest
For families of four with incomes at 125% of the poverty line ($21,285): $860.	2nd highest
For families of three with incomes at 125% of the poverty line ($16,613): $552.	Highest
Kentucky has consistently taxed families with incomes below the poverty line. Because Kentucky’s tax threshold for families of four has changed little during the 1990s, the gap between the threshold and the poverty line has increased. In 1991, a family of four owed tax if its income exceeded 36 percent of the poverty line. For 1999, Kentucky’s tax threshold has dropped to 31 percent of the poverty line.