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Tax help in Kentucky

Kentucky tax rules, in plain words.

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Updated October 8, 20268 sourcesFact checked
The short answer

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.

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.

Run the numbers with our free tax tools, like the penalty and payment plan math.

See your options

A few questions. A tax pro calls you back.

Free tools: penalty calculator, 10 year clock, IRS offer data

Free to use. Not the IRS or any government agency. Results depend on your situation. Not every case qualifies.