Kentucky residents will see their individual income tax rate go down at the start of 2026. State lawmakers passed a bipartisan bill, House Bill 1, to lower the tax to 3.5% from 4%. On Tuesday, Gov. Andy Beshear signed HB1 saying Kentucky is experiencing a booming economy but it’s time to help families who may be hurting financially.

Democratic Gov. Andy Beshear has signed off on a bill that will lower Kentucky’s individual income tax starting next year

Kentucky Governor, Andy Beshear signs a bill lowering the individual income tax rate. Gov. Beshear says despite seeing economic growth in the Commonwealth, some are still struggling to afford necessities like groceries.