Kentucky met certain benchmarks in order for us to move towards eliminating the state income tax. It will be dropped 0.5% or a half percentage point beginning in 2026, that’s if it’s approved in the upcoming legislative session. This shows that the economy is doing well. The reason that the KY legislature is moving towards eliminating the state income tax is to further rev up the economy and allow Kentuckians to keep more of their hard earned money. The state doesn’t want to penalize hard work and the fruits of one’s labor, which is what the income tax does. There are critics who say it only helps the rich, but when we look at states like Florida which have eliminated the income tax, they have thriving economies which benefits everyone.