Free Lexington Paycheck Calculator

The salary calculator will help you automatically calculate your annual salary, weekly salary, and also the number of hours you work per week, the frequency of payments, the taxes of the different states where you are located, in addition to showing you the salary breakdown, it will also provide you with charts to access, all you need to do is to fill out the calculator below to get your answer.

All-in-One Paycheck Calculator

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Used to calculate yearly salary if only hourly wage is given How often you receive your paycheck Used to apply state income tax (default flat rate per state) % of income contributed to retirement savings (optional) Health, dental, or other deductions

How We Ensure Your Calculations Are Accurate at HnKey

Verified Data:In order to ensure that the accuracy of our calculations is our main priority, our team frequently checks the tax information, and policies of the IRS to review our calculations in a timely manner.

Regularly Updated:It is important to note that these data, not our guesses, come from official sources such as the IRS and state tax offices.

Disclaimer: This tool is for estimation purposes only and does not constitute financial advice. Please consult a qualified professional for personalized financial guidance.

Understanding your paycheck in Lexington, Kentucky, involves knowing how various taxes and deductions impact your take-home pay. This guide provides a clear explanation of the key components affecting your paycheck, including federal, state, and local taxes, as well as other common deductions. By breaking down the tax calculation process and referencing official guidelines, this information aims to help you accurately estimate your net income.

Federal Income Tax

Federal income tax is withheld from your paycheck based on your gross income, filing status, and allowances claimed on your IRS Form W-4. The Internal Revenue Service (IRS) uses a progressive tax system, meaning the tax rate increases as your income rises. For 2025, the federal tax brackets range from 10% to 37%, depending on your taxable income. To calculate federal income tax, your employer uses the information from your W-4 to determine your withholding amount, which is based on the IRS withholding tables. These tables account for your filing status (e.g., single, married filing jointly) and the number of dependents you claim. The IRS provides a Tax Withholding Estimator to help you ensure accurate withholding.

Social Security and Medicare Taxes

In addition to federal income tax, your paycheck is subject to Federal Insurance Contributions Act (FICA) taxes, which fund Social Security and Medicare. For 2025, the Social Security tax rate is on income up to a wage base limit of $168,600, as set by the Social Security Administration. Medicare tax is withheld at a rate of on all wages, with an additional for individuals earning above $200,000 (or $250,000 for married couples filing jointly). These taxes are automatically deducted by your employer and matched by them for contribution to federal programs.

Kentucky State Income Tax

Kentucky imposes a flat state income tax rate of on all taxable income, as outlined by the Kentucky Department of Revenue. Unlike federal taxes, which use progressive brackets, Kentucky’s flat rate simplifies the calculation: of your taxable income (gross income minus exemptions and deductions) is withheld for state taxes. For example, if your taxable income is $50,000, your state income tax would be $2,250 annually. You can claim exemptions for yourself, your spouse, and dependents, which reduce your taxable income. The Kentucky Department of Revenue provides Form K-4 for employees to specify their withholding preferences.

Lexington Local Taxes

In Lexington, employees are subject to a local occupational license tax, also known as a payroll tax, administered by the Lexington-Fayette Urban County Government. This tax is levied at a rate of on all wages earned within Fayette County. For example, if you earn $40,000 annually, the local tax would amount to $900 per year. Employers in Lexington withhold this tax directly from your paycheck, and it applies to both residents and non-residents working in the county. Certain professions, such as public school teachers, may qualify for exemptions or reductions, so check with your employer or the local government for eligibility.

Other Common Deductions

Beyond taxes, your paycheck may reflect additional deductions, such as health insurance premiums, retirement contributions (e.g., 401(k) or Kentucky Public Pensions Authority plans), and union dues, if applicable. These amounts vary based on your employment agreement and personal elections. For instance, contributions to a 401(k) plan are typically pre-tax, reducing your taxable income, while health insurance premiums may be pre-tax or post-tax, depending on your employer’s plan. Review your pay stub carefully to understand these deductions, and consult your HR department for details on voluntary contributions.

How to Calculate Your Take-Home Pay

To estimate your net pay, start with your gross income (your total earnings before deductions). Subtract federal income tax based on your filing status and W-4 allowances, using IRS withholding tables or the Tax Withholding Estimator. Next, deduct for Social Security (up to the wage cap), for Medicare (plus if applicable), for Kentucky state income tax, and for Lexington’s occupational tax. Finally, subtract any pre-tax deductions (e.g., retirement contributions or health insurance) and post-tax deductions (e.g., union dues). The remaining amount is your take-home pay. For a more precise calculation, use a reliable paycheck calculator tailored to Lexington’s tax rates.

Official Resources and Tools

For accurate withholding and tax planning, refer to official resources. The IRS website offers guidance on federal taxes and withholding, while the Kentucky Department of Revenue provides state-specific tax information and forms. For local taxes, the Lexington-Fayette Urban County Government website details occupational tax requirements. Regularly updating your W-4 and K-4 forms ensures your withholdings align with your financial situation, preventing under- or over-withholding.

Using a paycheck calculator can simplify this process by automating tax calculations based on your income, filing status, and deductions. The calculator below incorporates federal, state, and Lexington-specific tax rates to provide an accurate estimate of your take-home pay.

The above information is reviewed by our team of tax experts, all of them have an average of about 10 years of experience in the U.S. tax, if you have any questions, you can submit the form to us, our experts will be within 24 hours, reply to you.

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