Taxes in Covington
Kentucky levies a real, flat 3.5% state income tax (effective January 1, 2026, per HB 8's phase-down) and a flat 6% sales tax with NO local add-ons anywhere in the state -- a real, disclosed advantage over Ohio's own higher combined sales tax just across the river -- while Kenton County's own effective property tax rate runs modestly above Kentucky's own statewide range.
Exploring the idea of moving?
We can connect you with a local real estate professional who knows the area -- no pressure, just a starting point.
Learn moreKentucky's Real, Recently-Cut Flat State Income Tax
Kentucky's state income tax is a real, flat rate cut to 3.5% effective January 1, 2026, via House Bill 8's statutory phase-down mechanism (down from 5% in 2018) -- this record discloses honestly that each further scheduled cut is CONTINGENT on the state meeting budget-reserve and revenue-growth triggers and requires legislative reenactment each cycle, per this build's own Kentucky market manifest research context, rather than an automatic permanent floor.
No Local Sales Tax Anywhere in Kentucky -- A Real, Genuine Simplification
Kentucky's sales tax is a flat 6% state rate with NO local city or county add-ons anywhere in the state -- the state rate is the whole story. This runs a real, disclosed contrast with Ohio, just across the river, where Hamilton County's own combined sales tax (Cincinnati included) ran a genuinely higher 7.8% (5.75% state plus 2.05% county) as of this build's own research pass -- a real, worthwhile point of contrast for Covington's own Cincinnati-commuter audience.
Kenton County's Own Modestly Elevated Property Tax
As detailed in full on the property-taxes topic page, Kenton County's own median effective property tax rate ran approximately 1.03% -- modestly above Kentucky's own statewide range of approximately 0.80%-0.85%, even as the county's own underlying nominal rate has been cut for five consecutive years to its lowest level since 1983.
A Real, Genuine Trade-Off Worth Weighing Together
Movers comparing Covington against other markets should weigh Kentucky's genuinely low income and sales taxes together with Kenton County's own modestly elevated property tax, rather than evaluating either in isolation -- the combined picture, and a mover's own income level and spending pattern, matter more than any single figure.
Key takeaways
- Kentucky's flat state income tax was cut to 3.5% effective January 1, 2026, though further cuts remain contingent on state budget triggers and legislative reenactment.
- Kentucky's flat 6% sales tax carries NO local city or county add-ons anywhere in the state -- a real, disclosed advantage over Ohio's own 7.8% Hamilton County rate.
- Kenton County's own effective property tax rate (approximately 1.03%) runs modestly above Kentucky's own statewide range.
- Weigh Kentucky's low income/sales taxes together with Kenton County's modestly elevated property tax for the full real picture.
Want to know what your budget actually buys here?
Tell us a bit about what you're looking for and we'll connect you with someone local who can walk you through real numbers.
Get local guidanceRead the full Covington overview for the complete picture -- housing, taxes, climate, and who this place genuinely fits.
Planning a move?
Tell us what you're looking for and we'll connect you with a local expert who can help you make it happen.
Talk to a local expert