Roth conversion taxes in Kentucky (2026)
By Mario Bailey · Published · Last reviewed
Kentucky taxes Roth conversions as ordinary income at a flat 3.5%. A conversion adds to your state taxable income in the year you convert, on top of federal tax. The table below shows the computed Kentucky tax on a $50,000 conversion at three baseline income levels, using 2026 rates.
Computed example: $50,000 conversion
State tax only (federal not included), age 66, standard deduction, no other state adjustments. Computed with the same functions the calculator uses.
| Filing status | Baseline income | State tax without conversion | With $50,000 conversion | Tax on the conversion | Effective rate |
|---|---|---|---|---|---|
| Single | $40,000 | $0 | $1,594 | $1,594 | 3.2% |
| Single | $80,000 | $1,244 | $2,994 | $1,750 | 3.5% |
| Single | $150,000 | $3,694 | $5,444 | $1,750 | 3.5% |
| Married filing jointly | $40,000 | $0 | $1,594 | $1,594 | 3.2% |
| Married filing jointly | $80,000 | $1,244 | $2,994 | $1,750 | 3.5% |
| Married filing jointly | $150,000 | $3,694 | $5,444 | $1,750 | 3.5% |
Social Security and retirement income
Kentucky does not tax Social Security benefits. A conversion can still raise the federally taxable share of your benefits through the provisional income formula. Kentucky also excludes up to $41,110 of retirement income for filers age 59 and over, which can shelter part of a conversion depending on how the state defines eligible retirement income.
FAQ
Does Kentucky tax Roth conversions?
Yes. Kentucky taxes Roth conversions as ordinary income at a flat 3.5%. Federal tax applies on top.
Does Kentucky tax Social Security benefits?
No. Social Security benefits are not subject to Kentucky income tax.
What is the top Kentucky rate on a conversion in 2026?
3.5% at the highest flat rate.
Model your Kentucky conversion in the calculator
Rate data source: https://revenue.ky.gov/Forms/2026%20Withholding%20Formula.pdf (KY DOR 2026 Withholding Tax Formula: rate 3.5%, standard deduction $3,360)