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 2026, 87 counties levied an occupational license fee with all 87 levying the tax on payroll and 70 counties levying the tax 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 $430.7 million in occupational license fees on payroll and net profits in FY 2024, making up 45.8 percent of all tax revenue.
• As of January 2026, 87 counties levied an occupational license fee with all 87 levying the tax on payroll and 70 counties levying the tax 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 $430.7 million in occupational license fees on payroll and net profits in FY 2024, making up 45.8 percent of all tax revenue.
