Kentucky residents will see their individual income tax rate go down at the start of 2026. State lawmakers passed a bipartisan bill, House Bill 1, to lower the tax to 3.5% from 4%. On Tuesday, Gov. Andy Beshear signed HB1 saying Kentucky is experiencing a booming economy but it’s time to help families who may be hurting financially.

Fulfilling comments he made earlier, Gov. Andy Beshear has signed GOP-led House Bill 1, which drops Kentucky’s income tax rate by one-half percent, to three-and-a-half percent,