Local payroll and employment requirements that differ from or exceed Kentucky state law
Last updated: January 2025
Federal minimum wage applies. Kentucky preempts local minimum wage increases.
No state or local paid sick leave requirement in Kentucky.
Tax on wages, salaries, commissions, and other compensation for work performed in Lexington-Fayette County. Withheld by employers.
Tax on net profits from business activities conducted in Lexington-Fayette County.
Separate 0.5% tax for Lextran transit authority. This is in addition to the 2.25% occupational tax, for a total of 2.75%.
Total withholding is 2.75%: 2.25% occupational tax plus 0.5% Lextran mass transit tax.
Employers file quarterly occupational tax returns with Lexington-Fayette Urban County Government Division of Revenue.
Credit allowed for occupational taxes paid to other Kentucky localities.
These local rules apply in addition to Kentucky state law. Employers must comply with whichever law provides greater protection to employees. Always verify current requirements with official sources.