What is the Louisville Metro occupational license tax?

Louisville/Jefferson County imposes a 2.2% occupational license tax on wages earned within the Jefferson County boundaries. Combined city/county rate. It applies regardless of where you live; what matters is whether the work is performed in Louisville/Jefferson County.

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?

You pay Louisville/Jefferson 2.2% on Louisville wages plus KY non-resident state tax. Indiana then credits you for the KY tax (per KY-IN reciprocity rules) but the occupational tax is generally NOT covered by the reciprocity agreement — verify with a CPA on multi-state filing.

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

You still owe Louisville/Jefferson 2.2% on all your earnings as a Louisville resident (residence-based for the city portion). Indiana state withholds for your IN work; KY credits you at filing.

Does the calculator include the Louisville line?

The PayslipIQ Paycheck Calculator handles federal, FICA, and KY state flat 4.0% in the main tool. For the Louisville Metro 2.2%, use the Local Tax Estimator below: select "Other / custom rate" and enter 2.2%.

USA · LOUISVILLE · 2026 · Educational only

Louisville Paycheck Calculator

Louisville Metro / Jefferson County imposes a 2.2% occupational license taxon wages earned in the county. Kentucky state flat 4.0% applies first. Work-location based for non-residents; residence-based for Louisville residents.

Reviewed by PayslipIQ Editorial Team, in-house payroll editor

Last reviewed May 2026 · Editorial standards

Step 1 — federal + FICA + Kentucky flat 4.0%

Paycheck calculator

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

Gross pay (per period)Pay frequencyStateFiling statusPre-tax deductions / period (401k, HSA, etc.)Post-tax deductions / period (Roth, garnishments, etc.)

Estimated take-home (per period)

$2,330.12

Estimated take-home (annual): $60,583.00

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

Post-tax deductions-$0.00

Net (take-home)$2,330.12

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

Step 2 — add the Louisville Metro 2.2%

Select "Other / custom rate" below and enter 2.2%(the combined Louisville/Jefferson Metro occupational license rate).

Local tax estimator

Gross pay this paycheck

Locality

Local tax this paycheck

$116.28

Effective rate

3.88%

Annualised local tax

$3023

NYC resident income tax (top marginal). Nonresidents who work in NYC do not pay this.

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. This calculator does not include state income tax, federal income tax, Social Security, or Medicare. Pair it with theGross to Net Paycheck Calculatorfor a complete picture.

Source

Louisville Metro Occupational License Tax: 2.2%. Source: Louisville Metro Revenue Commission.

Common questions

What is the Louisville Metro occupational license tax?: Louisville/Jefferson County imposes a 2.2% occupational license tax on wages earned within the Jefferson County boundaries. Combined city/county rate. It applies regardless of where you live; what matters is whether the work is performed in Louisville/Jefferson County.
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?: You pay Louisville/Jefferson 2.2% on Louisville wages plus KY non-resident state tax. Indiana then credits you for the KY tax (per KY-IN reciprocity rules) but the occupational tax is generally NOT covered by the reciprocity agreement — verify with a CPA on multi-state filing.
I live in Louisville but work in Indiana — what do I pay?: You still owe Louisville/Jefferson 2.2% on all your earnings as a Louisville resident (residence-based for the city portion). Indiana state withholds for your IN work; KY credits you at filing.
Does the calculator include the Louisville line?: The PayslipIQ Paycheck Calculator handles federal, FICA, and KY state flat 4.0% in the main tool. For the Louisville Metro 2.2%, use the Local Tax Estimator below: select "Other / custom rate" and enter 2.2%.

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