Democratic Gov. Andy Beshear signed a bill into law Thursday that will reduce Kentucky's individual income tax, expressing confidence that economic growth will offset the loss in revenue. The measure,

Kentucky residents will see their individual income tax rate go down at the start of 2026. State lawmakers passed a bipartisan bill, House Bill 1, to lower the tax to 3.5% from 4%. On Tuesday, Gov. Andy Beshear signed HB1 saying Kentucky is experiencing a booming economy but it’s time to help families who may be hurting financially.

Lowering the income tax rate has been a priority for Republican lawmakers in recent years. Gov. Andy Beshear signed the bill Thursday.