Occupational license fees are taxes that may be imposed as a percentage of payroll on those working within a county and/or as a percentage of net profits of business activities in the county.
- As of January 2024, 86 counties levied an occupational license fee on payroll.
- Rates range from 0.50 percent to 2.25 percent, with a median rate of 1 percent.
- Excluding Fayette and Jefferson, counties collected a total of $353.5 million in occupational license fees on payroll and net profits in FY 2022, making up 42.7 percent of all tax revenue.
