Kentucky residents will see their individual income tax rate go down at the start of 2026. State lawmakers passed a bipartisan bill, House Bill 1, to lower the tax to 3.5% from 4%. On Tuesday, Gov. Andy Beshear signed HB1 saying Kentucky is experiencing a booming economy but it’s time to help families who may be hurting financially.

Lowering the income tax rate has been a priority for Republican lawmakers in recent years. Gov. Andy Beshear signed the bill Thursday.

Democratic Kentucky Gov. Andy Beshear signs another GOP-enacted income tax cut, saying“things cost too much for our families” despite a “booming economy.”

"There's a new freshman republican out there that seems pretty focused on me," Beshear said. "I don't think about him at all."

"This has been supported by Republicans. It's been supported by Democrats. In the end, I support it because it's going to help you," the governor said before putting pen to paper.

House Bill 1, which cuts the state's individual income tax from 4% to 3.5%, passed the Senate chamber by a 34-3 vote Tuesday, the first day lawmakers returned to Frankfort after a three-week hiatus. It'll go into effect Jan.