Taxes in Paducah
Paducah's tax picture combines the lowest property tax rate in McCracken County with a real, distinct local occupational tax layer this record discloses honestly.
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Learn moreThe lowest property tax rate in McCracken County
Paducah's own effective property tax rate ran approximately 0.79% -- genuinely the lowest of any location within McCracken County, per Ownwell, against a countywide median of 0.84%.
A real, distinct local occupational tax layer
The City of Paducah's own occupational license fee runs 2.0% of wages within city limits; McCracken County's separate 1% occupational tax applies to wages earned outside Paducah within the county -- confirm current, specific withholding rules directly.
Kentucky's real, dated, CONTINGENT income-tax cut
Kentucky's flat state income tax fell to 3.5% effective January 1, 2026 (from 5% in 2018), CONTINGENT on meeting budget triggers and requiring separate legislative reenactment each cycle.
Key takeaways
- Paducah's own property tax rate (~0.79%) runs genuinely the lowest in McCracken County.
- Paducah's 2.0% city occupational tax is a real, additional cost beyond Kentucky's flat state income tax.
- Kentucky's 3.5% flat income tax (effective Jan. 1, 2026) is genuinely contingent, not a guaranteed permanent floor.
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