Republican lawmakers wasted no time advancing a bill on the second day of this year’s legislative session to further reduce Kentucky’s individual income tax rate. The bill is a top GOP priority and would move Republicans closer to their goal of eventually eliminating the tax altogether.

Kentucky’s Republican-dominated legislature has convened to start a 30-day session that’s expected to include action to reduce the state’s individual income tax rate

The bill would lower Kentucky’s individual income tax rate from 4% to 3.5% in 2026, projected to lower state revenue by $718 million annually.

As lawmakers prepare for the first day of the legislative session Wednesday, Republicans and Democrats both want to lessen the financial burden for Missourians. Both parties think tax cuts could be a solution,

Missouri residents may soon pay a flat 4% state income tax, under a plan advanced by Republican lawmakers who want to eventually eliminate the tax. At the same time, the GOP proposal would give the General Assembly the power to impose sales taxes on an array of previously untaxed services – everything from massages to furnace maintenance.

State lawmakers met in Frankfort on Monday to begin the 2025 legislative session — welcoming new members, introducing legislation and arguing over their own rules and procedures.