What is the Louisville Metro occupational license tax?

Louisville/Jefferson County withholds occupational license tax on compensation for work performed in Louisville Metro (all of Jefferson County). The resident employee rate is 2.2% (Louisville Metro 1.25% + TARC 0.2% + school boards 0.75%). The nonresident employee rate is 1.45% (no school board). Source: Louisville Metro Revenue Commission OL-3 and W-1KJC instructions.

How does this differ from Kentucky state tax?

Kentucky has a flat state income tax (currently 4.0%, with legislative plans to lower further). The Louisville Metro occupational tax is on top of the state tax. Both come out of your paycheck if you work in Louisville.

I live in Indiana but work in Louisville — what do I pay?

On wages for work performed in Louisville Metro, the nonresident occupational rate is 1.45%, not 2.2%. Kentucky nonresident state tax may also apply. Indiana reciprocity generally does not cover the occupational line. Verify the stack with a CPA on multi-state filing.

I live in Louisville but work in Indiana — what do I pay?

Louisville Metro withholding is on compensation for work performed in Louisville Metro. Work performed only in Indiana is not automatically the 2.2% line. Indiana state withholding may apply to Indiana work. Confirm with the Louisville Metro Revenue Commission or a CPA; do not assume a residence-based 2.2% on out-of-county wages.

Does the calculator include the Louisville line?

This city page preselects "Louisville Metro occupational" at the 2.2% resident rate in the Paycheck Calculator and the estimator. Gross-to-Net still defaults to no local tax until you pick the same locality. If you already picked it in take-home, do not add the estimator line twice. Nonresidents should change the rate field to 1.45%.

USA · LOUISVILLE · 2026 · Educational only

Louisville Paycheck Calculator

Louisville Metro / Jefferson County occupational license tax is 2.2% for residents and 1.45% for nonresidents on wages for work in Jefferson County. Kentucky state flat 4.0% applies first. Other Kentucky cities have their own occupational rates; this page is Louisville Metro only.

Reviewed by PayslipIQ Editorial Team, in-house payroll editor

Last reviewed May 2026 · Editorial standards

Step 1 — federal + FICA + Kentucky flat 4.0% + Louisville Metro occupational

Paycheck calculator

Enter gross, state, and filing status. Estimates only.

Gross pay (per period)Pay frequencyStateFiling statusPre-tax deductions / period (401k, HSA, etc.)Local city / county taxLocal rate (%)Post-tax deductions / period (Roth, garnishments, etc.)

Estimated take-home (per period)

$2,264.12

Estimated take-home (annual): $58,867.00

Gross pay$3,000.00

Pre-tax deductions-$0.00

Federal income tax-$320.38

Social Security (6.2%)-$186.00

Medicare (1.45%)-$43.50

Kentucky state tax-$120.00

Louisville Metro occupational-$66.00

Post-tax deductions-$0.00

Net (take-home)$2,264.12

Educational only, not tax, legal, financial, or payroll advice. Verify with your payroll team, a CPA, the IRS, or your state tax authority.

Local tax estimator (already on this page's paycheck tool)

This estimator also defaults to Louisville Metro occupational at 2.2% (resident). Enter 1.45% if you live outside Louisville Metro. If take-home already includes this line, do not add it twice.

Local tax estimator

Gross pay this paycheck

LocalityLocal rate (%)

Local tax this paycheck

$66.00

Effective rate

2.20%

Annualised local tax

$1716

Louisville/Jefferson County occupational license tax on wages earned in Louisville Metro. Resident 2.2%; nonresident 1.45% (no school board). Enter 1.45 if you live outside Louisville Metro. Not a statewide KY occupational rate. Source: Louisville Metro Revenue Commission OL-3 / W-1KJC.

Estimate only. Local income tax rules vary by residency, work location, school district, and special assessments. Some localities (NYC, Yonkers) tax residents but not commuters; others (KC, STL, Wilmington) tax both. Verify with the city revenue agency or your payroll team before relying on a number. Pair this with theGross to Net Paycheck Calculatorand pick the same locality there so take-home includes this line.

Source

Louisville Metro occupational license tax: resident 2.2%, nonresident 1.45%. Source: Louisville Metro Revenue Commission Form OL-3 and Form W-1KJC instructions. Other Kentucky cities are not this rate.

Common questions

What is the Louisville Metro occupational license tax?: Louisville/Jefferson County withholds occupational license tax on compensation for work performed in Louisville Metro (all of Jefferson County). The resident employee rate is 2.2% (Louisville Metro 1.25% + TARC 0.2% + school boards 0.75%). The nonresident employee rate is 1.45% (no school board). Source: Louisville Metro Revenue Commission OL-3 and W-1KJC instructions.
How does this differ from Kentucky state tax?: Kentucky has a flat state income tax (currently 4.0%, with legislative plans to lower further). The Louisville Metro occupational tax is on top of the state tax. Both come out of your paycheck if you work in Louisville.
I live in Indiana but work in Louisville — what do I pay?: On wages for work performed in Louisville Metro, the nonresident occupational rate is 1.45%, not 2.2%. Kentucky nonresident state tax may also apply. Indiana reciprocity generally does not cover the occupational line. Verify the stack with a CPA on multi-state filing.
I live in Louisville but work in Indiana — what do I pay?: Louisville Metro withholding is on compensation for work performed in Louisville Metro. Work performed only in Indiana is not automatically the 2.2% line. Indiana state withholding may apply to Indiana work. Confirm with the Louisville Metro Revenue Commission or a CPA; do not assume a residence-based 2.2% on out-of-county wages.
Does the calculator include the Louisville line?: This city page preselects "Louisville Metro occupational" at the 2.2% resident rate in the Paycheck Calculator and the estimator. Gross-to-Net still defaults to no local tax until you pick the same locality. If you already picked it in take-home, do not add the estimator line twice. Nonresidents should change the rate field to 1.45%.

Kentucky Paycheck Guide

KY flat 4.0% + occupational tax overview.

All US Local Paycheck Taxes

All US cities + counties with local payroll tax.

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.

Frequently asked questions