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The Kentucky Limited Liability Entity Tax (KY LLET) serves the same purpose. The tax is calculated using the lesser of $0.095/$100 of Kentucky gross receipts or $0.75/$100 of Kentucky gross profits. Regardless of which calculation method is used, business owners are required to pay a minimum Kentucky LLET of $175.
Kentucky law lowers personal income tax rates for 2023 and 2024 and removes triggers for future rate cuts. On February 17, 2023, Kentucky Governor Andy Beshear signed into law H.B.1, which lowers the state personal income tax rate to 4.5% retroactive to January 1, 2023, and to 4.0% effective January 1, 2024.
Pay by Mail?Make your checks payable to the Kentucky State Treasurer. Please specify the taxpayer's full name, Social Security number(s), and the tax period you are paying. Mail the payments to the Division of Collections, P.O. Box 491, Frankfort, KY 40602-0491.
If you received a letter from us, your return has been selected for identity confirmation and verification is required in order to complete the processing of your tax return.
Kentucky Form 725 is designed to tax the single member, individually owned Limited Liability Corporation (LLC) where the income from a business owned by an individual is taxed as a corporation, if business done by the LLC was done in Kentucky.
KY Form 725, Single Member LLC Individually Owned Income and LLET Return, can be produced and e-filed through Drake Tax. To generate KY Form 725, first complete the federal data entry screens, as applicable. Then, on each income source that corresponds to a KY LLC, enter an LLC#.
??Individual Income Tax is due on all income earned by Kentucky residents and all income earned by nonresidents from Kentucky sources.
Family Size Tax Credit - The 2022 threshold amount is $13,5900 for a family of one, $18,310 for a size of two, $23,030 for a size of three, and $27,750 for a family size of four or more people.