Gov. Beshear signs tax cut bill

Gov. Beshear says despite seeing economic growth in the Commonwealth, some are still struggling to afford necessities like groceries. House Bill 1 will lower the individual income tax rate from 4% to 3.5%. The bill is the first to be approved by the Kentucky General Assembly during the 2025 legislative session. Beshear signed the bill on Thursday citing bipartisan support.

The income tax reduction is set to take effect on or after January 1, 2026.