Bowling Green Local Tax Guide (2026)
Understanding how local taxes work in Bowling Green, Kentucky, and how they affect your take-home pay.
In this guide
Last updated: October 1, 2026
- •Bowling Green has a local income tax that applies to income earned in the city.
- •Residents pay 2.00% on all income.
- •Local tax is separate from Kentucky state tax and federal tax. Both are calculated independently and add to your total tax burden.
- •Local tax directly reduces your take-home pay. Combined with state and federal taxes, the total tax burden can be significant for high earners.
What Bowling Green local tax costs at three incomes
The 2.00% resident rate is charged on top of federal tax, Kentucky state tax and FICA. Priced for 2026, a $75,000 salary loses $1,500 to Bowling Green alone and takes home $57,585: a combined 23.2% of gross across all four.
| Salary | Bowling Green tax | Kentucky tax | Federal + FICA | Take-home | Total rate |
|---|---|---|---|---|---|
| $50,000 | $1,000 | $1,632 | $7,645 | $39,723 | 20.6% |
| $75,000 | $1,500 | $2,507 | $13,408 | $57,585 | 23.2% |
| $120,000 | $2,400 | $4,082 | $26,750 | $86,768 | 27.7% |
How Bowling Green compares
Of the 62 US jurisdictions that levy a local income tax, Bowling Green ranks 42nd by resident rate, level with 1 other jurisdiction. The median is 2.50%, the highest is New York City at 3.078%–3.876%, and the lowest is St. Louis at 1.00%. Immediately above Bowling Green sits Marion County (Indianapolis) (2.02%) and below it Gadsden (2.00%).
Within Kentucky, 4 jurisdictions charge a local income tax and Bowling Green is the 4th highest. Same salary, different address:
| Kentucky jurisdiction | Resident rate | Cost on $75,000 |
|---|---|---|
| Covington | 3.1497% | $2,362 |
| Lexington | 2.75% | $2,063 |
| Louisville | 2.20% | $1,650 |
| Bowling Green | 2.00% | $1,500 |
What local taxes apply in Bowling Green
Bowling Green has a local income tax that applies to income earned in the city.
Key Takeaway
| Residency Status | Rate | Applies To |
|---|---|---|
| Resident | 2.00% | All income |
Bowling Green has a local income tax that applies to income earned in the city. The rate depends on whether you're a resident or non-resident.
Bowling Green has a local income tax that applies to income earned in the city.
Residents: If you live in Bowling Green, you pay 2.00% on all your income.
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How they interact with state taxes
Bowling Green local tax is calculated separately from Kentucky state income tax. Both taxes are calculated on your taxable income and are withheld by your employer.
Tax Deduction
Bowling Green local tax is calculated separately from Kentucky state income tax. This means:
- Local tax is in addition to state tax, not instead of it
- Both taxes are calculated on your taxable income (or wages, depending on the tax type)
- Your employer withholds both local and state taxes from your paycheck
- You may be able to deduct local tax on your state tax return, depending on Kentucky tax rules
For example, if you earn $100,000 in Bowling Green, you pay Kentucky state tax on that income, plus Bowling Green local tax. The local tax doesn't reduce your state taxable income.
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Who is affected
You're subject to Bowling Green local tax if you live in the city or work in the city, depending on whether you're a resident or non-resident.
You're subject to Bowling Green local tax if:
- You live in Bowling Green (residents pay on all income)
- You're self-employed and perform work in Bowling Green
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Common paycheck misconceptions
Common misunderstandings about Bowling Green local tax, including when it applies and how it's calculated.
Common misconceptions about Bowling Green local tax:
- "It's the same as state tax": False. Local tax is separate from Kentucky state tax and is calculated independently.
- "I only pay if I live there": True for residents, but check if non-residents are subject to tax.
- "Remote work means no tax": If you're a Bowling Green resident, you typically pay on all income regardless of where you work.
Take-home pay impact
Bowling Green local tax directly reduces your take-home pay. The amount depends on your income level and whether you're a resident or non-resident.
Bowling Green local tax directly reduces your take-home pay. For example, if you earn $100,000 as a Bowling Green resident:
- Local tax: approximately $2000 annually
- This reduces your bi-weekly paycheck by about $77
- Combined with Kentucky state tax and federal tax, the total tax burden can be significant
To see exactly how Bowling Green local tax affects your paycheck, use our calculator above. You can adjust your income, filing status, and deductions to see how different scenarios affect your net pay.
Want to see this with your numbers? Try the calculator with your numbers →
Does this apply to you?
Determine whether you're subject to Bowling Green local tax based on where you live and work.
Check Your Pay Stub
You're subject to Bowling Green local tax if:
- You live in Bowling Green (residents pay on all income)
You're not subject to Bowling Green local tax if you live and work outside the city, even if you're a Kentucky resident.