Louisville local tax
On $60,000 of wages, working in Louisville costs $1,320 a year in local occupational fees if you live there, or $870 if you commute in.
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 |
|---|---|---|---|
| Louisville Metro occupational tax | 1.25% | $60,000 | $750 |
| TARC (transit) levy | 0.2% | $60,000 | $120 |
| Jefferson County school boards | 0.75% | $60,000 | $450 |
| Total | $1,320 |
How Louisville and Jefferson County interact
The city and county governments are merged, so a single consolidated levy applies rather than two stacked ones.
- Merged metro government: a non-resident working in Louisville pays 1.45% (Metro plus TARC); a resident pays 2.2%, the difference being the residence-based school board levy.
- No wage cap.
- Smaller cities inside Jefferson County still STACK on top of Metro -- Jeffersontown's own FAQ: an employee earning a wage in Jeffersontown "is subject to the Jeffersontown occupational tax and the Louisville Metro occupational tax". Those city fees are not modelled here.
Source: Louisville Metro Code §110.02 and Form W-1 instructions, verified 2026-08-22.
Louisville local tax: common questions
How much local tax do I pay working in Louisville?
On $60,000 of wages, $1,320 a year if you live in Louisville, and $870 if you commute in from elsewhere. That is 3 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 Jefferson County charge on top of Louisville?
The city and county governments are merged, so a single consolidated levy applies rather than two stacked ones.
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."