Beshear signs bill to lower Ky.’s income tax rate to 4%

FRANKFORT, Ky. (WTVQ) — Gov. Andy Beshear signed House Bill 1 Friday, which will lower Kentucky’s income tax rate by half a percentage point to 4%.

In a video posted on Beshear’s Twitter account, he said inflation “is real,” grocery store bills are “still way too high” and Kentuckians need relief. But he didn’t sign the bill until he noted his concerns.

“The best way to provide that relief would have been a reduction in the sales tax. A reduction in the sales tax for a certain period of time would have meant things that cost too much, cost less,” he said. “But the General Assembly refused to go that route.”

HB 1 has long-term repercussions when it comes to funding state services, he argued, but would “put at least a couple hundred dollars in the pockets of most Kentuckians at a time when they need it.”

The income tax rate in Kentucky is currently 4.5%.

To read the full bill, click here.