This allows the DOI adequate time to update the next fiscal year tax schedule and other resources prior to the July 1 effective date. This year, the deadline falls on March 23, 2023.
The Department is required to notify each insurance company engaged in business in the Commonwealth of the local governments that have elected to impose fees or taxes, and the current amount of the fee or rate of tax.
The Department is required to notify each insurance company engaged in business in the Commonwealth of the local governments that have elected to impose fees or taxes, and the current amount of the fee or rate of tax.
The updated tax schedule, 2022-23 Local Government Premium Tax bulletin, and other resources are available on the Department website at https://insurance.ky.gov/ppc/new_default.aspx?divid=13
For additional information, contact DOI’s John Hord at (502) 564-1649 or email john.hord@ky.gov.
Insurance premium taxes are one of the top three revenue sources for Kentucky counties. For FY 2022-23, 45 counties are listed as administering an insurance premium tax in at least one category.
County insurance premium taxes fall into seven categories:
County insurance premium taxes fall into seven categories:
- Fire and Allied Perils (45 counties)
- Casualty Liability Only (45 counties)
- Vehicle (45 counties)
- Inland Marine (45 counties)
- Health (7 counties)
- Life (22 counties)
- All Other Risk Taxed (43 counties)
All 45 counties tax at least 5 of these categories. The most frequently excluded category is health insurance followed by life insurance. Tax rates range from 2 to 10 percent, with an average rate across all categories of 5.8 percent.
Download a list of 2022-23 county insurance premium tax rates here.
