Covington local tax
On $60,000 of wages, working in Covington costs $1,890 a year in local occupational fees.
Levy by levy
Each levy is applied at its own wage cap. Adding the rates together and applying them once would give a different, wrong answer wherever the caps differ.
| Levy | Rate | Wages it applies to | Annual amount |
|---|---|---|---|
| Covington occupational fee | 2.45% | $60,000 | $1,470 |
| Kenton County occupational fee | 0.6997% | $60,000 | $420 |
| Total | $1,890 |
How Covington and Kenton County interact
The city fee and the county fee both apply, with no credit between them. Someone working inside the city limits pays both.
- Kenton County states the stacking explicitly: "the gross earnings of employees are subject to both City AND County Withholding... every City lies within Kenton County."
- This is the county whose no-credit status traces directly to KRS 68.197(10)(a), enacted after City of Covington v. Kenton County (Ky. 2004).
- The county fee is capped at the Social Security wage base; the Covington city fee is not.
Kenton County does not credit the Covington fee -- both apply in full to the same wages.
Source: Kenton County — 2026 Quarterly Return Form QCC1 instructions, verified 2026-08-22.
Covington local tax: common questions
How much local tax do I pay working in Covington?
On $60,000 of wages, $1,890 a year if you live in Covington. That is 2 separate levies, and each is capped at its own wage base rather than sharing one — which is why the total is not simply the rates added together.
Does Kenton County charge on top of Covington?
The city fee and the county fee both apply, with no credit between them. Someone working inside the city limits pays both.
Is this the same as Kentucky state income tax?
No. This is a local occupational licence fee, levied by the city, county or school board, and it is separate from Kentucky's state income tax. It is also not waived by Kentucky's reciprocity agreements with neighbouring states — Form 740-NP-R, the reciprocal-state refund return, instructs "Do not include local tax withheld."