Occupational Tax Administration
Welcome & Services
Welcome to the Henderson County Fiscal Court Occupational Tax Office webpage. The Henderson County Fiscal Court passed an occupational tax that took effect January 1, 2016. The tax has both payroll and net profits components. Henderson County entered into a contractual agreement with the City of Henderson whereas the city accepts applications and payments on behalf of the county in conjunction with the city’s occupational tax. These pages are meant to help inform the public about the Occupational Tax in Henderson County, but you are encouraged to review the ordinance or contact the Occupational Tax Administrator for clarity.
Beginning January 1, 2016, every employer (for profit and non-profit) that pays, wages, salaries, commissions, tips, or other taxable compensation to an employee for work performed within Henderson County, Kentucky but not within the city limits of Henderson, is required to withhold and remit 1% of the gross compensation paid.
Beginning January 1, 2016 every business entity conducting business for a profit in Henderson County, Kentucky but not within the city limits of Henderson, is required to pay a tax of 1% of its net profits. Businesses are granted a $10,000 initial exemption on their local net profit liability and total liability due to Henderson County is capped at $2,000 Businesses operating in Henderson County are required to file and application and pay a $25 fee.
- If my business is in the city of Henderson or outside Henderson County, do I need to have a Henderson County Occupational Tax License?
- If my business is in the city of Henderson or outside Henderson County, do I have to withhold the tax from my employees’ payroll for the Henderson County Occupational tax?