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, and other compensation for work performed in Louisville Metro. Withheld by employers.
Tax on net profits from business activities conducted in Louisville Metro.
Separate 0.2% tax for Transit Authority of River City. Included in the 2.2% total for most employers.
Employers file quarterly occupational tax returns with Louisville Metro Revenue Commission. Monthly filing may be required for large employers.
Employers must obtain Louisville Metro business license and register for occupational tax withholding.
Credit allowed for occupational taxes paid to other Kentucky localities, up to the Louisville rate.
Tax applies to wages for work physically performed in Louisville Metro. Remote workers outside the metro may not be subject.
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.