1099 Quarterly Taxes in Kentucky (2025-2026)
If you're self-employed in Kentucky — freelancer, contractor, gig worker, or single-member LLC — you owe quarterly estimated taxes to two agencies: the IRS (federal) and Kentucky Department of Revenue (state). Kentucky uses a flat 4.00% income tax, which makes estimating your state burden simpler than progressive states. But you still need to send the money on time to avoid underpayment penalties.
Kentucky state income tax (2025)
Kentucky uses a flat income tax rate of 4.00% on all taxable income above the standard deduction. There are no brackets — every dollar of taxable income is taxed at the same rate.
How to pay Kentucky estimated taxes
Federal estimated tax due dates (April 15, June 16, September 15, 2026, and January 15, 2027) apply to your Kentucky state estimated payments as well — most states piggyback on the federal schedule. Pay Kentucky taxes through the Kentucky Department of Revenue's online portal: revenue.ky.gov. You can also mail Form 740-ES with a check.
Kentucky-specific quirk freelancers miss
Kentucky transitioned to a flat tax with annual reductions tied to revenue triggers. The 2025 rate is 4.0%, down from 5.0% in 2022. Local occupational license taxes apply in many counties and cities (e.g., Louisville's 2.2%).
Common deductions for Kentucky freelancers
- Kentucky allows the same business expenses (home office, mileage, software, etc.) as federal.
- Half of SE tax is deductible federally; check Kentucky's rules for state conformity.
- KY conforms to QBI from federal AGI.
- SEP-IRA / Solo 401(k) contributions reduce both federal and Kentucky taxable income.
- Self-employed health insurance premiums are deductible federally.