KY HB152

Establishes a graduated income tax structure beginning January 1, 2027 for taxpayers with net income under $150,000: 4% on income up to $100,000, 5% on income between $100,000-$125,000, and 6% on income between $125,000-$150,000

Imposes a flat 6% tax rate on all net income for taxpayers earning $150,000 or more beginning January 1, 2027

Maintains the current 3.5% flat tax rate for taxable years beginning January 1, 2026 through December 31, 2026

Removes the existing automatic tax rate reduction mechanism that allowed incremental rate decreases (0.1%-0.5%) based on budget reserve trust fund balances and general fund revenue conditions

Preserves existing tax credits including $40 for taxpayers age 65+, $40 for blind taxpayers, and $20 for Kentucky National Guard members