Report by Tax Foundation
LEXINGTON, Ky. (March 13, 2017) — Kentucky ranks 24th in state and local tax burden as a percentage of state income, according to the Tax Foundation’s 2017 version of its annual Facts & Figures report released today.
Also, Kentucky ranks 34th on the Tax Foundation’s State Business Tax Climate Index, which measures how well each state’s tax code is structured. In addition, the report shows how much each state relies on different revenue sources for their total revenue collections.
Key rankings for Kentucky:
- Federal aid as a percentage of state general revenue: 5th (accounts for 38.5 percent of Kentucky’s budget, above the U.S. average of 30 percent)
- State individual income tax collections per capita: 26th ($920; national average: $967)
- State corporate income tax collections per capita: 18th ($170; national average: $144)
This year’s version includes new figures, including how state’s tax marijuana and tobacco vaping products, how adequately each state’s pensions are funded and how much consumption each state’s sales tax actually covers.