Kentucky Estimated Quarterly Tax

Kentucky requires estimated quarterly tax payments if you expect to owe more than $500 in state tax. The safe harbor is paying 90% of your current year tax liability or 100% of your prior year tax. Payments are due on the same dates as federal (April 15, June 15, September 15, January 15).

Why It Matters

Self-employed workers and freelancers in Kentucky must make estimated quarterly payments for both federal and state taxes. Missing payments or underpaying can result in penalties from both the IRS and Kentucky Department of Revenue. Kentucky charges a 7.0% penalty rate on underpayments. Planning ahead helps you avoid surprises at tax time and manage cash flow throughout the year.

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How It Works

Kentucky estimated tax is calculated on your expected state taxable income for the year. File using Form 740-ES through Kentucky Department of Revenue. Payments are divided equally (25% each quarter). Due dates are 2026-04-15, 2026-06-15, 2026-09-15, and 2027-01-15. The annualized income installment method is available for taxpayers with uneven income throughout the year.

Example

Single filer • $100,000 net SE income • 2026

Quarterly

$7,109

per quarter

Federal

$25,745

25.75%

Total Annual

$28,435

28.43%

Resources

Kentucky Estimated Tax Payments - Official Portal

Official Kentucky estimated tax payment portal administered by Kentucky Department of Revenue.

Source: Kentucky Department of Revenue

Frequently Asked Questions

Does Kentucky have local estimated tax requirements?

Kentucky cities and counties levy occupational license taxes (e.g., Louisville Metro 2.2%, Lexington-Fayette 2.25%). Some localities require quarterly estimated deposits for businesses/self-employed individuals above a threshold.

How do I pay estimated taxes in Kentucky?

You can make estimated tax payments in Kentucky online through Kentucky Department of Revenue's payment portal, by mailing Form 740-ES with a check, or through electronic funds transfer. Online payment is the fastest and provides immediate confirmation.

What is the estimated tax threshold in Kentucky?

Kentucky requires estimated quarterly payments if you expect to owe more than $500 in state income tax after withholding and credits. This applies to self-employed individuals, freelancers, and anyone with significant non-wage income.

What is the penalty for underpaying estimated taxes in Kentucky?

Kentucky charges an underpayment penalty at a rate of 7.0% per year on the underpaid amount. To avoid penalties, pay at least 90% of your current year tax liability or 100% of your prior year tax (110% if AGI exceeds $150,000).

When are estimated tax payments due in Kentucky?

Kentucky follows the same due dates as federal estimated payments: April 15, June 15, September 15, and January 15. Payments are made using Form 740-ES through Kentucky Department of Revenue.