Kentuckians will see a reduction in their income tax rate next year after Governor Andy Beshear on Thursday signed House Bill One into law.
“The bill lowers the income tax to 3.5 percent next January without cutting any of the state programs that Kentuckians are dependent on,” said Kentucky House District 25 Representative Steve Bratcher. “Economists estimate the cut will leave $718 million in paychecks and pocketbooks in the first year alone. We’ve seen previous tax cuts translate into more spending in our local communities, investments, and helping Kentuckians deal with national inflation.”
During his Team Kentucky Update Thursday, Governor Beshear said he supported the bill because it saves Kentuckians money at a time where prices are high.
“This is a bill that’s been supported by Republicans,” Beshear said. “It’s been supported by Democrats. In the end, I support it because it’s going to help you, and that’s where the analysis should always focus.”
Beshear said he believed growth across the state will offset the loss of tax revenue, and noted that Kentuckians can view information on the financial impact of such bills on the 2025 Facts and Fiscal Notes webpage on the governor’s website. The text of House Bill One can be found on the Kentucky Legislative Research Commission website.
