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The Kentucky Department of Revenue has made a number of changes for the 2018 tax year. The individual income tax rate is now 5%. Also, personal tax credits for taxpayers who are 65 or over, blind, or in the Kentucky National Guard are still allowed, but all other personal tax credits have been repealed.
Beginning with tax year 2018, medical expenses, taxes, investment interest, casualty or theft losses, gambling losses, and miscellaneous deductions subject to the 2% floor no longer qualify as itemized deductions for Kentucky. In addition, two new credits, the Film Industry Credit and the Inventory Tax Credit, are now available.
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