Kentucky Governor Andy Beshear is lowering state income taxes. Beshear signed House Bill 1, which will decrease the individual income tax rate from four-percent to three-point-five percent. The bill was the first to be approved by the Kentucky General Assembly in 2025 and was passed with bipartisan support. Beshear says despite economic growth in the state, many consumers are still having difficulties paying for basic necessities. The tax reduction will take effect on or after January 1st of next year.
