Insurance premium taxes are levied on insurance companies for the privilege of doing business in the county and are assessed on premiums collected by insurance companies. Counties can levy insurance premium taxes on the following categories: automobile, fire and allied perils, casualty/liability, inland marine, life, health and all other risks.
- As of FY 2026, 50 counties levy an insurance premium tax on at least one category.
- Tax rates range from 2 percent to 10 percent, with a median rate of 6 percent.
- In FY 2023, counties* collected a total of $76.6 million in insurance premium tax revenue, making up 8.8 percent of total county* tax revenue
*Excluding Fayette and Jefferson counties.
