Live in Tennessee, work in Kentucky
Your home state has no income tax, so there is no credit to offset the work state's tax. You pay the work state as a nonresident.
Official tax guidance for both states
Check withholding, filing requirements and current forms with each state's tax agency.
- Tennessee: Tennessee Department of Revenue (opens in new tab)
- Kentucky: Kentucky Department of Revenue (opens in new tab)
Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.
Before you use this estimate
This model assumes a full-year resident of Tennessee, ordinary employee wages and all workdays physically in Kentucky. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.
State income tax: $3,382 a year
Modeled annual state income tax for living in Tennessee and working in Kentucky: about $3,382 on $100,000 of wages, $3,382 more than if you worked in Tennessee.
Your home state has no income tax, so there is no credit to offset the work state's tax. You pay the work state as a nonresident.
Tax guide and official sources: live in Tennessee, work in Kentucky
Official agency starting points: Tennessee tax agency (opens in new tab) · Kentucky tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.
This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.
How this $100,000 estimate adds up
These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.
| Step | Kentucky work state | Tennessee home state |
|---|---|---|
| Tax before the modeled other-state credit | $3,382 | $0 |
| Modeled other-state credit subtracted | $0 | $0 |
| Tax after that credit | $3,382 | $0 |
Total: $3,382 + $0 = $3,382 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.
No other-state credit is subtracted in this selected scenario. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.
State tax at different salaries
| Wages | To KY | To TN | Modeled total | If you worked in TN |
|---|---|---|---|---|
| $50,000 | $1,632 | $0 | $1,632 | $0 |
| $75,000 | $2,507 | $0 | $2,507 | $0 |
| $100,000 | $3,382 | $0 | $3,382 | $0 |
| $150,000 | $5,132 | $0 | $5,132 | $0 |
| $250,000 | $8,632 | $0 | $8,632 | $0 |
Single filer, all wages earned in Kentucky, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- File a Kentucky nonresident return. There's no Tennessee return for wages because Tennessee has no income tax.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Local income taxes
- Kentucky: City/county occupational license taxes are levied by work location on residents and nonresidents alike (e.g., Louisville Metro ~2.2% combined, Lexington 2.25%), and are NOT covered by KY's state reciprocity agreements - OH/IN commuters into Louisville/Covington still pay them.
Frequently asked questions
Do I pay Kentucky income tax if I live in Tennessee?
Yes. Kentucky taxes wages earned there by nonresidents. On $100,000 that's about $3,382.
Do I have to file taxes in both Tennessee and Kentucky?
Usually you file only one state return (a nonresident return in Kentucky), though some states still require a nonresident return to get a refund of any wrongly withheld tax.
Will I be taxed twice?
No. Tennessee has no income tax, so there is no resident state income tax on these wages; you pay Kentucky's nonresident tax, about $3,382 on $100,000. Local taxes need a separate check.
Related
- Live in Kentucky, work in Tennessee
- Moving from Tennessee to Kentucky
- Moving from Kentucky to Tennessee
- Live in Tennessee, work in Alabama
- Live in Tennessee, work in Arkansas
- Live in Tennessee, work in Georgia
- Live in Tennessee, work in Missouri
- Live in Tennessee, work in Mississippi
- Live in Tennessee, work in North Carolina
- Live in Tennessee, work in Virginia
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.