Kentucky News

Where does Kentucky get its money?

Kentucky’s Revenue Sources: A Closer Look

The Commonwealth of Kentucky generates its revenue through a variety of channels, essential for funding state programs and services. One of the primary sources is taxation, which includes income, sales, and property taxes. Kentucky’s individual income tax system is structured with rates ranging from 2% to 6%, depending on the taxpayer’s income level. The state also levies a 6% sales tax on most goods, with certain services also taxable.

Corporate taxes contribute to the state’s coffers as well, with businesses paying a rate that varies based on their net income. Additionally, property taxes, collected at the local level, provide significant funding for public education and other local services.

Kentucky also benefits from federal government grants, which support a wide range of state programs, including health care, transportation, and education. These grants are often tied to specific projects or needs within the state.

Another notable source of revenue is the state’s participation in the gaming industry. Kentucky is known for its horse racing tracks, which generate income through pari-mutuel wagering taxes. The state lottery, established in 1989, also contributes to education funding.


Q: What is the largest source of revenue for Kentucky?
A: The largest source of revenue for Kentucky is typically taxation, including income, sales, and property taxes.

Q: Does Kentucky have a state lottery?
A: Yes, Kentucky has a state lottery, which was established in 1989 and contributes to education funding.


Pari-mutuel wagering: A betting system in which all bets of a particular type are placed together in a pool, with the odds determined by the share of the pool for each bet.

Net income: The amount of money that remains after all operating expenses, taxes, interest, and preferred stock dividends have been deducted from a company’s total revenue.

By Daniel Hall

Daniel Hall is a noted author and researcher with a focus on energy efficiency and smart city technologies in the United States. His work explores the integration of innovative energy solutions into urban infrastructure, emphasizing the role of technology in enhancing sustainability and resilience in American cities. Hall's analysis of how smart grids, renewable energy sources, and energy-efficient technologies can transform urban living is both comprehensive and forward-looking. His contributions are highly regarded for shedding light on the path towards more sustainable and technologically advanced urban environments.