01/06/2026
LEGISLATIVE UPDATE
Promises Kept: Lowering the income tax means rewarding work, attracting investment, increasing competitiveness
On January 1, Kentucky took another meaningful step toward a more competitive, more prosperous future, and working Kentuckians can see the results in their next paycheck. Our individual income tax rate officially dropped to 3.5%, continuing the legislature’s long‑term commitment to phasing out the tax entirely. For a $50,000 salary, we have helped put an additional $1,250 in your pocket since we started reducing the personal income tax rate.
Our goal is simple: eliminate the individual income tax entirely. Not overnight, not recklessly, but responsibly through measured reductions tied to clear fiscal benchmarks. This approach ensures that we protect essential services while still moving Kentucky toward a tax structure that rewards work, attracts investment, and makes our state competitive with our neighbors.
This year’s reduction builds on the work we began by setting a framework for responsible, data‑driven rate cuts tied to revenue triggers and economic performance. Economists estimate that the most recent reduction will leave approximately $718 million in the pockets of Kentucky taxpayers in the first full fiscal year of implementation.
We have already seen the benefits. Businesses are taking notice. Families are choosing to stay. Entrepreneurs are choosing to build here rather than elsewhere. Every step we take toward eliminating the income tax sends a message that Kentucky is open for growth, open for innovation, and open for opportunity.
Meaningful work - real reform that reshapes a state’s economic future - never happens by accident. It takes persistence, discipline, and, at times, the willingness of the legislature to stand firm when the governor tries to slam on the brakes. Here in Kentucky, lawmakers had to override the governor’s veto to pass HB 1 in 2022. And yet, despite his attempt to block it, he now seems more than willing to bask in the glow of its success. It is a reminder that progress often requires the legislature to lead boldly and to stay the course even when others try to claim the credit after the fact.
As we convene this year’s legislative session, I am optimistic about where we are headed. We are demonstrating that fiscal responsibility and improving our quality of life are not mutually exclusive - they are mutually reinforcing. By continuing to lower the income tax and finding ways to ensure state government works for the people and not the other way around, we are building a stronger foundation for future generations and ensuring that Kentucky remains a place where hard work is rewarded, not penalized.
The future is bright for our Commonwealth. And as long as I have the privilege of serving, I will continue working to ensure that Kentucky families keep more of what they earn and that our state remains on a path toward lasting prosperity.
However, our work is far from done and we will convene the 2026 Regular Session on January 6. Want to follow along? The Legislative Research Commission (LRC) is the legislature’s administrative arm and maintains a helpful, information-packed website. It contains every bill and resolution, schedules, contact information, and information about the legislative process. For decades, Kentucky Educational Television (KET) has televised committee meetings and the work we do on the House Floor. In addition, the legislature now offers a YouTube channel and broadcasts live from all committees and the House and Senate. To access the KET and YouTube coverage, visit www.legislature.ky.gov and click on “Live Coverage.”
As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via email at [email protected] and keep track through the Kentucky legislature’s website at legislature.ky.gov.