2025 Legislative Session Begins, House Introduces Bill to Reduce Personal Income Tax Rate

Kentucky’s newly elected House and Senate members were sworn in Tuesday to begin the 30-day 2025 legislative session of the General Assembly.

After gaveling in at noon, both chambers adopted rules and introduced several bills and resolutions. Notably, the House introduced a bill to reduce the individual income tax. House Bill 1, introduced by Chairman Jason Petrie, would decrease the individual income tax rate by half a percentage point to 3.5%, effective January 1, 2026.

The House Appropriations and Revenue Committee will meet at 11:30 a.m. Wednesday, January 8, on House Bill 1.

In August 2024, the State Budget Director announced that the state met its revenue conditions, as outlined in House Bill 8 of the 2022 legislative session. This prompted the legislature to make House Bill 1 its top priority this session.

The Kentucky Center for Policy and Research recently released a new report detailing the state’s tax reform efforts and offering recommendations for the Commonwealth’s continued progress. This proposed reduction equates to about $600 million in reduced state income taxes for Kentucky taxpayers. 

Several newly elected officials began their first terms:

• Representative Kimberly Holloway (District 2)
• Representative J.T. Payne (District 11)
• Representative Ryan Bivens (District 24)
• Representative Peyton Griffee (District 26)
• Representative Chris Lewis (District 29)
• Representative Mary Marzian (District 41)
• Representative Joshua Watkins (District 42)
• Representative Adam Moore (District 45)
• Representative Erika Hancock (District 57)
• Representative Tony Hampton (District 62)
• Representative T.J. Roberts (District 66)
• Representative Matthew Lehman (District 67)
• Representative Anne Donworth (District 76)
• Representative Vanessa Grossl (District 88)
• Representative Mitchum Whitaker (District 94)
• Representative Aaron Thompson (District 98)
• Senator Craig Richardson (District 3)
• Senator Aaron Reed (District 7)
• Senator Matt Nunn (District 17)
• Senator Scott Madon (District 29)

Senators Keturah Herron and Steve Rawlings also began their new positions in the Senate today, having previously served in the House.  To view all the legislators, visit https://legislature.ky.gov/Legislators/Pages/default.aspx.

Governor Andy Beshear will give his State of the Commonwealth address on Wednesday, January 8, at 7:00 p.m. ET. The address will be broadcast live on Kentucky Educational Television.

Stay tuned to The Bottom Line for more updates during the 2025 legislative session.