As an existing or prospective business owner, understanding your business tax situation
is a necessary aspect of running your business. Business taxes help to support government programs
at the local, state, and federal level. As such, a business owner should stay aware of pending
legislation at those levels that may impact their business. Sales and use taxes, payroll taxes and
withholding taxes, property taxes, and corporation and income taxes are just some of the types
of taxes that you may encounter as a business owner.
In 2005, Kentucky completed the first comprehensive overhaul of its tax system in half a century.
Among other things, the JOBS for Kentucky Tax Modernization Plan eliminated both the corporate
license tax and the personal property tax on intangibles, reduced individual income taxes, and
created tax incentives for economic development and environmental initiatives.
The Kentucky Department of Revenue,
administers the tax laws and collects tax revenue for the state and can provide more detailed
information. The Internal Revenue Service
can also provide assistance regarding business tax issues. The services of an accountant should
also be considered.
For additional information or assistance, please email us at
econdev@ky.gov or call 800-626-2930.
Additional Resources:
Major Business Taxes in Kentucky in PDF version*
Major Personal Taxes in Kentucky in PDF version*
State Indices of Relative Business Costs
- PDF version*
Kentucky Business Incentives and Financial Programs
Downloadable Kentucky Business Tax Forms
– Dept. of Revenue
IRS Information on Taxes
for Small Businesses and Self-Employed Individuals
Apply For a Federal
Employer Tax I.D. Number Online
Federal Tax
Information for Small Businesses Including Forms and Publications
SBA Information on
Payroll Taxes
SBA Online
Training Courses on Federal Taxes