Texas vs Kentucky Taxes: Income, Property & Sales

Does Texas or Kentucky have lower taxes? We answer that in a variety of ways below:

Texas vs Kentucky Income Tax Comparison

	Texas	Kentucky
Income Tax Rates & Thresholds	None	5.00%
Median Income	$74,640	$55,880
Income Tax Paid On Median Household Income	$9,189	$7,680
Income After Tax Based on Median Household Income	$65,451	$48,200

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Texas vs Kentucky Property Tax Comparison

	Texas	Kentucky
Average Property Tax Rate	1.25%	0.60%
Average House Price By State	$305,497	$201,033
Average Property Tax Owed Per Year	$3,819	$1,206
Income After Income Taxes & Property Taxes Based On Median State Household Income	$61,632	$46,994

Texas vs Kentucky Sales Tax Comparison

	Texas	Kentucky
Average State Sales Tax	6.25%	6.00%
Average Local Sales Tax Across the State	1.95%	0.00%
Average Combined Sales Tax Rate	8.20%	6.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,671	$2,660
Maximum Disposable Income Based on Median Household Income	$56,961	$44,334

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Texas	Kentucky
Income Tax Owed	$3,040	$4,865
After Tax Income	$36,960	$35,135
Income After Income & Property Tax	$33,141	$33,929
Maximum Disposable Income After Income, Property & Sales Taxes	$30,630	$32,008

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Texas	Kentucky
Income Tax Owed	$5,968	$8,793
After Tax Income	$54,032	$51,207
Income After Income & Property Tax	$50,213	$50,001
Maximum Disposable Income After Income, Property & Sales Taxes	$46,408	$47,171

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Texas	Kentucky
Income Tax Owed	$10,368	$14,193
After Tax Income	$69,632	$65,807
Income After Income & Property Tax	$65,813	$64,601
Maximum Disposable Income After Income, Property & Sales Taxes	$60,826	$60,944

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Texas	Kentucky
Income Tax Owed	$14,768	$19,593
After Tax Income	$85,232	$80,407
Income After Income & Property Tax	$81,413	$79,201
Maximum Disposable Income After Income, Property & Sales Taxes	$75,243	$74,718

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Texas	Kentucky
Income Tax Owed	$8,481	$13,081
After Tax Income	$91,519	$86,919
Income After Income & Property Tax	$87,700	$85,713
Maximum Disposable Income After Income, Property & Sales Taxes	$81,054	$80,861

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Texas	Kentucky
Income Tax Owed	$18,536	$25,636
After Tax Income	$131,464	$124,364
Income After Income & Property Tax	$127,645	$123,158
Maximum Disposable Income After Income, Property & Sales Taxes	$117,972	$116,187

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Texas	Kentucky
Income Tax Owed	$29,536	$39,136
After Tax Income	$170,464	$160,864
Income After Income & Property Tax	$166,645	$159,658
Maximum Disposable Income After Income, Property & Sales Taxes	$154,016	$150,621

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Texas	Kentucky
Income Tax Owed	$41,455	$53,555
After Tax Income	$208,545	$196,445
Income After Income & Property Tax	$204,726	$195,239
Maximum Disposable Income After Income, Property & Sales Taxes	$189,211	$184,188

FAQ

Does Texas or Kentucky have lower income taxes?

Texas’s income tax falls into the following range: None

Whereas Kentucky’s income tax is the following 5.00%

Does Texas or Kentucky have lower property taxes?

Texas has an average property tax rate of 1.25%

In comparison, Kentucky has an average property tax rate of 0.60%

Does Texas or Kentucky have lower sales taxes?

Texas has a state sales tax rate of 6.25% and an average local rate of 1.95% for a combined total rate of 8.20%.

In contrast, Kentucky has a state sales tax rate of 6.00% and an average local rate of 0.00% for a combined total rate of 6.00%.

Do you get to keep more money in Texas or Kentucky?

Based on median household income after income, property and sales taxes Texas gives you a maximum amount of disposable income of $56,961

In comparison, Kentucky gives you $44,334.

More Comparisons:

Texas vs Oregon
Texas vs Oklahoma
Texas vs Connecticut
Texas vs Utah
Texas vs Iowa

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/