The Kentucky Department of Revenue estimates the state’s total income tax bill for the current year is about $6.9 billion.
But if you divide that figure by the number of Kentucky residents, that figure drops to about $4.9 million.
Kentucky Income Tax Definition: Kentuckians pay income tax on the entire amount of their gross earnings, whether earned in a business or not.
A Kentucky resident can be considered an “incidental taxpayer” who pays no income tax.
The federal government’s definition of an “inherited” taxpayer is that he or she has been taxed at some point, and the state taxes all other Kentucky residents.
Income Tax Bill in Kentucky: According to the Kentucky Department’s income tax calculator, the state paid an estimated $4,719.1 million in income taxes last year.
That’s about $1.9 in state taxes per person and $1,073.5 per dependent, the calculator states.
That means the state received about $5,611.5 million in revenue.
The calculator doesn’t include income tax refunds.
Kentucky has the fifth highest income tax rate in the nation, and it’s likely to be the highest in the U.S. in 2020, said Steve Stitt, a professor of economics at the University of Kentucky.
The state’s budget shortfall is expected to top $1 billion, which would make it the third highest in Kentucky after Michigan and Mississippi, Stitt said.
This is not the first time Kentucky has reported its income tax numbers.
The state last reported the numbers in 2008.
States across the country are struggling with revenue shortfalls.
The U.K. government is forecasting a $1 trillion shortfall by 2029, and about 1.3 million jobs will be lost as a result of economic downturns, according to a report by the United Kingdom’s National Institute for Economic and Social Research.