Kentucky

The tax imposed by KRS 141.020 upon individuals shall apply to estates and trusts and to all fiduciaries. This tax shall be paid annually upon the net income of estates and of any property held in trust at the rates specified in KRS 141.020.

KRS 391.210 to 391.260 may be cited as the Uniform Disposition of Community Property Rights at Death Act.

Whether or not both, one (1), or neither spouse is domiciled in this state, spouses may classify any or all of their property as community property by transferring property to a community property trust and providing in the trust that the property is community property.

For taxable years beginning on or after January 1, 2024, but before January 1, 2026, the tax shall be four percent (4%) of net income.

For taxable years beginning on or after January 1, 2026, the tax shall be three and one-half percent (3.5%) of net income.

In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.

Exclude income that is exempt from state taxation by the Kentucky Constitution and the Constitution and statutory laws of the United States; ... Include interest income derived from obligations of sister states and political subdivisions thereof;

Exclude income that is exempt from state taxation by the Kentucky Constitution and the Constitution and statutory laws of the United States; ... Include interest income derived from obligations of sister states and political subdivisions thereof;

"Internal Revenue Code" means for taxable years beginning on or after January 1, 2026, the Internal Revenue Code in effect on December 31, 2025, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, 2024, that would otherwise terminate;

"Internal Revenue Code" means for taxable years beginning on or after January 1, 2026, the Internal Revenue Code in effect on December 31, 2025, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, 2024, that would otherwise terminate;

Interest income from United States government obligations shall be excluded from gross income only if such interest income is exempt from state income taxes under the laws of the United States.

For taxable years beginning on or after January 1, 2024, but before January 1, 2026, the tax shall be four percent (4%) of net income.

Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.

Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.

The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).

In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.

For taxable years beginning on or after January 1, 2024, but before January 1, 2026, the tax shall be four percent (4%) of net income.

Generally, the closer the relationship the greater the exemption and the smaller the tax rate. ... Class B beneficiaries receive a $1,000 exemption and the tax rate is 4 percent to 16 percent. ... Class C beneficiaries receive a $500 exemption and the tax rate is 6 percent to 16 percent.

For taxable years beginning on or after January 1, 2024, but before January 1, 2026, the tax shall be four percent (4%) of net income.

A nonresident individual shall be taxable only upon the amount of income received by the individual from labor performed, business done, or from other activities in this state, from tangible property located in this state, and from intangible property which has acquired a business situs in this state; provided, however, that the situs of intangible personal property shall be at the residence of the real or beneficial owner and not at the residence of a trustee having custody or possession thereof.