Taxes & Insurance in Independence
Independence's tax picture combines a real, disclosed local payroll tax with Kentucky's own statewide rates, alongside the state's genuinely elevated homeowners-insurance costs.
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Learn moreA real, layered city-plus-state tax picture
Independence's own 1.25% city payroll tax applies to gross pay earned within city limits, on top of Kentucky's flat, CONTINGENT state income tax (3.5% effective January 1, 2026, down from 5% in 2018 via House Bill 8) -- each further cut requires the legislature to meet budget-reserve/revenue-growth triggers and reenact it each cycle, not a guaranteed permanent floor.
Kenton County's own moderate property tax rate
Kenton County's effective property tax rate ran approximately 1.00% this pass, following a real 5th consecutive annual county rate cut (to 11.5 cents per $100 of valuation), with a median annual county tax bill of approximately $2,284.
Kentucky's real, elevated statewide insurance costs
No Independence-specific premium data distinct from Kentucky's own statewide figures was found this pass -- Kentucky ran the 4th most expensive state for homeowners insurance nationally, with statewide averages running a real, disclosed $3,384-$3,540 annually, above the $2,868 national average.
Key takeaways
- Independence's 1.25% city payroll tax layers on top of Kentucky's own 3.5% flat state income tax.
- Kenton County's property tax rate (~1.00% effective) reflects a real 5th consecutive annual county rate cut.
- Kentucky ran the 4th most expensive state for homeowners insurance nationally this pass.
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