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.

Fulfilling comments he made earlier, Gov. Andy Beshear has signed GOP-led House Bill 1, which drops Kentucky’s income tax rate by one-half percent, to three-and-a-half percent,

Governor Andy Beshear signed House Bill 1 into law Thursday morning, a move that will lower the individual income tax rate next year. Governor Beshear stated that he signed the bill due to Kentucky’s “booming” economy,

Democratic Kentucky Gov. Andy Beshear signs another GOP-enacted income tax cut, saying“things cost too much for our families” despite a “booming economy.”

House Bill 1, which cuts the state's individual income tax from 4% to 3.5%, passed the Senate chamber by a 34-3 vote Tuesday, the first day lawmakers returned to Frankfort after a three-week hiatus. It'll go into effect Jan.