State tax debt in Kentucky is collected by Kentucky Department of Revenue, not the IRS. After 60 days, a 25% cost of collection fee is added. The state may file a lien. Call 502-564-4921 for a payment plan.
Key facts for Kentucky
- State income tax
- Flat 3.5% for 2026. Source
- Payment plan
- After 60 days, a 25% cost of collection fee is added. The state may file a lien. Call 502-564-4921 for a payment plan. Source
- Offer program
- Yes. Kentucky calls it an Offer in Settlement. Use Form 12A018. Source
Two debts, two sets of rules
- The IRS collects federal taxes, with its own letters and plans.
- Kentucky Department of Revenue collects Kentucky taxes, with its own rules.
- A plan with the IRS does not stop the state from collecting, and the other way around.
Common questions in Kentucky
Who collects state taxes in Kentucky?
The Kentucky Department of Revenue. It is separate from the IRS. A plan with one does not stop the other from collecting.
Can I get a payment plan for Kentucky taxes?
After 60 days, a 25% cost of collection fee is added. The state may file a lien. Call 502-564-4921 for a payment plan.
Does Kentucky take offers in compromise?
Yes. Kentucky calls it an Offer in Settlement. Use Form 12A018.
Can TaxTruce help with Kentucky tax debt?
Yes. TaxTruce is a free service that connects you with tax resolution firms that work in Kentucky. Answer a few questions, confirm your phone with a text code, and a firm reviews your situation and calls you back. We are not the IRS or a state agency.
Results depend on your situation. Not every case qualifies.
Sources
- Kentucky Department of Revenue
- Kentucky Department of Revenue: income tax rates
- Kentucky Department of Revenue: payment plans
- Kentucky Department of Revenue: offers and settlements
- Census QuickFacts Kentucky (ACS 2020-2024)
- Census Reporter: Kentucky profile (ACS 2024 1 year)
- Census Reporter: Fayette County KY profile (ACS 2024 1 year, Kentucky veteran comparison)
- Census population estimates, July 1, 2024 (share 65 and over)
Facts on this page come from Kentucky Department of Revenue and are linked. Rules change. Check with Kentucky Department of Revenue or a licensed tax pro before you act. We are not affiliated with Kentucky Department of Revenue.