Kentucky’s low cost of doing business just got even better with the passage of major tax reform legislation by the 2018 Kentucky General Assembly. Lowering the corporate income tax rate to a flat 5 percent, along with many other tax climate improvements, the Kentucky Crossroads region is now among the lowest cost areas in the United States to do business.
Breaking News
Kentucky’s 2018 General Assembly passes historic tax reform package, lowering corporate income tax rate to 5 percent. See more details on Kentucky tax reform here.
Taxes
State
A full overview of current state taxes, including corporate income tax, property tax, sales tax and exemptions, unemployment insurance and more can be found in the Kentucky Cabinet for Economic Development’s Just the Facts: Kentucky’s Business Taxes report.
Local
Occupational Tax
Cities, counties and school districts may levy an occupational license tax on the net profits of businesses and/or on the salaries and wages of employees earned in the jurisdiction. Below are county and city occupational tax rates where applicable. Currently, no school districts have levied an occupational license tax in the Kentucky Crossroads region.
| Taxing Entity (County) | License Tax | Taxing Entity (City) | License Tax |
|---|---|---|---|
| Anderson | No tax | Lawrenceburg | No tax |
| Boyle | 0.75% (on net profits) | Danville | 1.75% (on net profits) |
| Casey | No tax | Liberty | No tax |
| Garrard | 2% (on net profits) | Lancaster | No tax |
| Lincoln | 1% (on net profits/withholding) | Stanford | 0.65% (on net profits) |
| Crab Orchard | No tax | ||
| Hustonville | No tax | ||
| Marion | 1% (on net profits) | Lebanon | 1% (on net profits) |
| Mercer | 0.45% (on net profits) | Harrodsburg | 1% (on net profits) |
| Burgin | No tax | ||
| Pulaski | No tax | Somerset | 0.60% (on net profits) |
| Rockcastle | 1.5% (on net profits) | Mount Vernon | 1% (on net profits) |
| Taylor | 1% (on net profits) | Campbellsville | 1% (on net profits) |
| Washington | 0.75% (on net profits/gross receipts | Springfield | 1% (on net profits) |
Source: Occupational Taxes Spreadsheet – Kentucky Secretary of State, Local Tax Listing – Kentucky Personnel Cabinet (2017)
Property Tax
Cities, counties and school districts may levy an occupational license tax on the net profits of businesses and/or on the salaries and wages of employees earned in the jurisdiction. Below are county and city occupational tax rates where applicable. Currently, no school districts have levied an occupational license tax in the Kentucky Crossroads region.
Tax Rates Per $100 Valuation, 2017
| Taxing Entity (County) | Real Estate | Taxing Entity (City) | Real Estate | Taxing Entity (School District) | Real Estate |
|---|---|---|---|---|---|
| Anderson | $0.2558 | Lawrenceburg | $0.1950 | Anderson Co. Schools | $0.6270 |
| Boyle | $0.2183 | Danville | $0.1440 | Boyle Co. Schools | $0.7040 |
| Danville Independent Schools | $0.9450 | ||||
| Casey | $0.3521 | Liberty | $0.2190 | Casey Co. Schools | $0.4730 |
| Garrard | $0.2363 | Lancaster | $0.1560 | Garrard Co. Schools | $0.6750 |
| Lincoln | $0.3667 | Stanford | $0.1320 | Lincoln Co. Schools | $0.5350 |
| Crab Orchard | $0.1270 | ||||
| Hustonville | $0.1190 | ||||
| Marion | $0.2133 | Lebanon | $0.2040 | Marion Co. Schools | $0.6000 |
| Mercer | $0.2880 | Harrodsburg | $0.0672 | Mercer Co. Schools | $0.6650 |
| Burgin | $0.1950 | Burgin Independent Schools | $0.6950 | ||
| Pulaski | $0.1620 | Somerset | $0.1300 | Pulaski Co. Schools | $0.5410 |
| Somerset Independent Schools | $0.7570 | ||||
| Science Hill Independent Schools | $0.6810 | ||||
| Rockcastle | $0.2752 | Mount Vernon | $0.1620 | Rockcastle Co. Schools | $0.4170 |
| Taylor | $0.3091 | Campbellsville | $0.1920 | Taylor Co. Schools | $0.5820 |
| Campbellsville Independent Schools | $0.6540 | ||||
| Washington | $0.3009 | Springfield | $0.1657 | Washington Co. Schools | $0.6020 |
Source: Kentucky Dept. of Revenue
Incentives
Kentucky Crossroads’ community partners work closely with the state’s Cabinet for Economic Development to customize incentive packages for new and expanding businesses to help offset the cost of making new capital investments and creating or retaining qualifying full-time jobs. Additionally, six of the 11 counties in our region qualify for enhanced benefits through the state’s Enhanced County designation. Please refer to this Overview of State Financial Incentive Programs for more details.
Labor Costs
Don’t think you can have your cake and eat it too? Well, we say dig in! Kentucky Crossroads’ low labor costs – among the lowest in the United States – go hand in hand with high-quality craftsmanship, a strong sense of pride in a day’s work and a productivity level that can’t be beat. Learn more about our labor costs on the Workforce Overview page.
Utilities
Utility costs can be a significant drain on the bottom line. But in Kentucky Crossroads, our utility provider partners understand the needs of business and work hard to provide the best service, infrastructure and price. Here you will find a listing of the service providers in our region. We’ll be happy to work with each of them to customize a proposal that will fit your individual needs.