Kentucky vs Ohio: Tax Impact on Your Salary
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 5.00% in Kentucky versus 3.99% in Ohio translates to about $1,010 per year at $100,000. Ohio balances this through affordability. Recent data shows traditionalists migrating to Ohio, middle class to Kentucky based on broader considerations.
The spread between Kentucky (5.00%) and Ohio (3.99%) creates noticeable paycheck differences. At $100,000, you're facing roughly $1,010 in annual tax variance. How much that matters depends on your broader financial picture.
🔑 Key Differences
- **State income tax**: Kentucky at 5.00% vs Ohio at 3.99%
- **Annual savings** (on $100,000): Ohio saves you ~$1,010
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | Kentucky | Ohio |
|---|---|---|
| State Income Tax | 5% | 0% - 3.99% |
| 💰 On $40,000 Salary |
State Tax: $2,000
Take Home: $38,000
|
State Tax: $798
Take Home: $39,202
+$1,202
|
| 💰 On $60,000 Salary |
State Tax: $3,000
Take Home: $57,000
|
State Tax: $1,197
Take Home: $58,803
+$1,803
|
| 💰 On $100,000 Salary |
State Tax: $5,000
Take Home: $95,000
|
State Tax: $1,995
Take Home: $98,005
+$3,005
|
| Cost of Living | Kentucky consistently ranks among America's most affordable states. Louisville and Lexington offer genuine metropolitan amenities - professional sports, cultural institutions, diverse dining - while maintaining housing costs 40-50% below major coastal markets. Quality homes in good neighborhoods typically sell for $200,000-300,000. Smaller cities throughout Kentucky provide even greater value. Property taxes stay low statewide, though varying by county. Groceries, utilities, and services all cost substantially less than national averages. The dramatic affordability means even moderate incomes support comfortable middle-class lifestyles that would require much higher salaries in expensive states. | Ohio ranks among America's more affordable states. Cleveland, Columbus, and Cincinnati offer genuine metropolitan amenities with housing costs 40-50% below similar-sized coastal cities. Quality homes in good suburbs typically sell for $200,000-300,000. Smaller Ohio cities provide even better value. Property taxes vary by locality but generally stay moderate. Groceries, utilities, and services all cost substantially less than national averages. The affordability means moderate salaries support comfortable middle-class lifestyles. |
Pros & Cons
Kentucky
✓ Advantages
- Flat 4.5% income tax is simple and predictable
- Very low cost of living statewide
- Extremely affordable housing
- Bourbon tourism and horse country unique culture
- No state tax on Social Security benefits
⚠ Considerations
- Lower average salaries than national average
- Some areas face economic challenges
- Limited public transportation
- Property taxes vary by county
- Some rural areas lack opportunities
Ohio
✓ Advantages
- Moderate state income tax tops out at 3.75%
- Affordable cost of living across the state
- Strong healthcare and manufacturing sectors
- Major metro areas offer urban amenities at reasonable costs
- Central location provides access to other regional markets
⚠ Considerations
- Some cities impose local income taxes on top of state tax
- Cold winters with heating expenses
- Some industrial areas face economic challenges
- Public transportation limited outside Cleveland
- Brain drain as young professionals leave for coastal opportunities
Bottom Line
The numbers favor Ohio by approximately $1,010 yearly for $100,000 earners. That said, Kentucky continues attracting residents who value affordability. Whether that tax difference outweighs Kentucky's edge in {factor} comes down to your personal situation and priorities.📢 Share This Comparison
Help others make informed decisions about their paycheck