• Occupational license tax: Kentucky cities call this an "occupational license tax" or "occupational tax"—it functions like a local income tax.
• Work location: Tax is based on where work is performed. Employers withhold for the work city/county.
• Credit for other taxes: Most jurisdictions allow credit for taxes paid to other KY localities, preventing double taxation.
• Business net profits: Many cities also tax business net profits at similar rates.