Kentucky has made the following changes to the tax laws for the 2025 tax year:
What changes have been made to deductions?
- The Standard Deduction for 2024 is $3,270.
What changes were made to state tax credits?
-
Family Size Tax Credit - For tax year 2025, the threshold amounts are as follows:
- Family size of one - $15,650
- Family size of two - $21,150
- Family size of three - $26,650
- Family size of four or more - $32,150
- Qualified Broadband Investment Tax Credit- For taxable years beginning on or after January 1, 2025, but before January 1, 2029, a nonrefundable and nontransferable credit allowed against the taxes imposed by KRS 141.020 or KRS 141.040 and KRS 141,0401 is available for the expansion of broadband services in Kentucky. The credit application must be submitted to the Department of Revenue by December 31 of the current calendar year. The Department will review and approve the allowable credit amount by February 1.
For more information, please see Kentucky's instructions.