The Tax Foundation says Kentucky’s business tax climate is getting better.
In its annual index of states’ tax systems, Kentucky moved up to 19th in the nation for the 2021 ranking. Ratings take corporate taxes, individual income taxes, sales taxes, property taxes and unemployment insurance taxes into account. Higher ranking indicate tax codes that support economic growth and business attraction and expansion.
Tax reforms passed by the Kentucky General Assembly in the past two years contributed to recent rises in the rankings. Kentucky’s low sales tax was its highest ranking at 13th in the nation. The Commonwealth as ranked one of the worst for unemployment insurance tax rates.