Business-Friendly Tax Environment Fuels Growth
Richmond offers one of the most cost-effective tax climates in the region. With competitive rates at every level, companies gain predictable costs that support long-term growth and reinvestment.
Competitive State Tax Structure Encourages Business Expansion
Kentucky maintains a low flat corporate income tax rate in the country at 5%, supported by a 5% capital gains tax. The personal income tax rate is just 4.5%, scheduled to drop to 3.5% by 2026, further strengthening the state’s pro-business environment.
A consistent 6% state sales tax provides clarity and predictability for businesses operating across the state. Combined, these rates make Kentucky a stable and transparent tax environment where employers can plan with confidence.
Local Taxes That Help Businesses Keep More of What They Earn
Richmond and Madison County work together to keep local taxes low and straightforward. Businesses benefit from clear, predictable costs that make it easier to plan, hire, and grow.
In the City of Richmond:
- Businesses pay a 2% occupational tax on wages paid to employees who work in the city.
- Real property tax (on land and buildings) is 12.1 cents per $100 of assessed value.
- Personal property tax (on equipment and machinery) is 15.3 cents per $100 of assessed value.
In Madison County:
- Businesses pay a 1% occupational tax on employee wages.
- Real property tax is 6.5 cents per $100 of assessed value.
- Personal property tax is 6.5 cents per $100 of assessed value, recently lowered to reduce costs for employers.
Together, these local tax rates keep operating expenses manageable and help businesses stay competitive while investing in their workforce and facilities.
Predictable Real Property Taxes Support Long-Term Investment
Across Kentucky, real property is taxed at 10.6 cents per $100 assessed value, one of the most favorable rates in the region. This consistency allows industrial and commercial developers to invest with confidence, knowing their ongoing tax obligations will remain stable over time.
Select Richmond
Make your next move to a community where tax policy supports business growth. Contact the Richmond Industrial Development Corporation to explore available sites and tailored incentives for your project.
