Kentucky Association of Counties

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Kentucky Association of Counties

KACo data brief: FY27 insurance premium tax rates

Rates effective July 1, 2026

Insurance premium taxes are assessed on insurance companies for the privilege of doing business in the county. Fiscal courts can levy insurance premium taxes on the following types of insurance: automobile, fire and allied perils, casualty/liability, inland marine, life, health and all other risks.

  • Fiscal year 2027: 50 counties with an insurance premium tax on at least one category.
  • Tax rates range from 2 to 10 percent, with a median rate of 5 percent.
Kentucky counties* collected a total of $99.5 million in insurance premium tax revenue in FY25, making up 9.8 percent of total county tax revenue.

Counties are required to notify the Kentucky Commissioner of Insurance by March 23 of any new or modified insurance premium tax rate that will take effect the following July 1.

*Excluding Fayette and Jefferson counties.

Click here to download the FY27 insurance premium data brief.


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