Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between Indiana and Kentucky for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.
| Tax | Indiana | Kentucky |
|---|---|---|
| State income tax (effective) | 3.05% | 4.00% |
| Long-term capital gains | 3.05% | 4.00% |
| Property tax (effective) | 0.84% | 0.83% |
| Combined sales tax | 7.00% | 6.00% |
| Retirement income | fully-taxable | partial-exempt |
| Income system | flat | flat |
Indiana total tax
$18,386
Kentucky total tax
$19,326
Indiana state tax
$3,016
Kentucky state tax
$3,956
Difference
+$940
Kentucky costs more
As % of income
0.78%
Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.
Moving from Indiana to Kentucky would cost an extra $940 per year on this profile.
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