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 2025, 87 counties levied an occupational license fee with all 87 levying the tax on payroll and 70 on net profits.
- Rates range from 0.50 percent to 2.5 percent, with a median rate of 1 percent.
- Excluding Fayette and Jefferson, counties collected a total of $387 million in occupational license fees on payroll and net profits in FY 2023, making up 44.5 percent of all tax revenue.
