Business Costs


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.