Several new Kentucky laws are now in effect, touching your paycheck, criminal penalties, medical cannabis access, school policies, tobacco sales, and more. The individual income tax rate dropped to 3.5 percent on January 1, 2026, the Safer Kentucky Act rewrote key parts of the criminal code, the medical cannabis program opened to patients on January 1, 2025, and a wave of 2025 and 2026 bills changed rules on driving age, sports betting, concealed carry, and Medicaid. Here is what changed and how it affects you.
Income Tax Rate Dropped to 3.5 Percent
Kentucky’s flat individual income tax rate fell from 4 percent to 3.5 percent for taxable years beginning on or after January 1, 2026, under House Bill 1 from the 2025 session.1Kentucky Legislative Research Commission. Kentucky General Assembly – House Bill 1 (2025 Session) That follows a cut from 4.5 percent to 4 percent for 2024.2Kentucky Legislative Research Commission. Kentucky General Assembly – House Bill 1 (2023 Session) The 2026 state withholding tables already reflect the new rate, so most employees should see a slightly larger paycheck without doing anything.3Kentucky Department of Revenue. 2026 Kentucky Withholding Tax Formula
Future cuts aren’t automatic. A trigger mechanism from House Bill 8 in 2022 requires two conditions before the rate can drop another half point: the Budget Reserve Trust Fund must hold at least 10 percent of General Fund revenues, and General Fund revenues must exceed spending even if the rate had been a full percentage point lower. If either condition isn’t met in a given year, the rate holds until the numbers line up again.
The Safer Kentucky Act Rewrote Key Criminal Penalties
House Bill 5 from the 2024 session, known as the Safer Kentucky Act, changed dozens of statutes.4Kentucky Legislative Research Commission. Kentucky General Assembly – House Bill 5 Three provisions matter most for everyday residents.
Three Strikes for Violent Felonies
A third violent felony conviction now carries life in prison without probation or parole. If that third offense is a capital crime, the sentence is either life without parole or death.5Kentucky Legislative Research Commission. Kentucky House Bill 5 – Crimes and Punishments Judges no longer have sentencing discretion once a defendant hits that third qualifying conviction.
Unlawful Camping
It is now illegal to enter or remain in a public area not designated for camping with the intent to sleep or camp there, including with sleeping bags or other camp gear. A first offense is a violation with a fine of up to $250, but the charge jumps to a Class B misdemeanor if the person refuses to leave when told. A second or later offense is automatically a Class B misdemeanor, punishable by up to 90 days in jail and a fine of up to $250.6Kentucky Legislative Research Commission. Kentucky Revised Statutes KRS 511.110 – Unlawful Camping Local governments can designate specific areas where camping is allowed.
Fentanyl Deaths Now Charged as Manslaughter
If you knowingly sell fentanyl or a fentanyl derivative and the buyer dies from using it, you can be charged with manslaughter in the first degree, a Class B felony.5Kentucky Legislative Research Commission. Kentucky House Bill 5 – Crimes and Punishments That carries a prison sentence of 10 to 20 years.7Kentucky Legislative Research Commission. Kentucky Revised Statutes KRS 532.060 – Sentence of Imprisonment for Felony
Medical Cannabis Program Is Operational
Senate Bill 47, signed in 2023, created Kentucky’s medical cannabis program. The law took effect January 1, 2025, and dispensaries are now serving registered patients across the commonwealth.8Kentucky Legislative Research Commission. Kentucky General Assembly – Senate Bill 47 The Office of Medical Cannabis, within the Cabinet for Health and Family Services, handles licensing and patient registration.9Kentucky Medical Cannabis Program. Office of Medical Cannabis
To participate, you need a written certification from a registered healthcare provider confirming you have a qualifying medical condition. Listed conditions include:
- Any type or stage of cancer
- Chronic or severe pain
- Epilepsy or other intractable seizure disorders
- Multiple sclerosis, including muscle spasms or spasticity
- Post-traumatic stress disorder
The law lists additional conditions beyond those five.10Kentucky Legislative Research Commission. Kentucky Acts – Chapter 146 (Senate Bill 47) After certification, you register with the state and receive a registry identification card, which you must carry whenever you possess medical cannabis. Practitioners who want to issue certifications must register with the state and complete continuing education first.
Federal Rescheduling Affects Kentucky Patients
The Department of Justice moved state-regulated medical marijuana products to Schedule III of the Controlled Substances Act, and the DEA published a proposed rule in April 2026 to formalize the rescheduling.11Federal Register. Schedules of Controlled Substances: Rescheduling of Marijuana The rulemaking is still underway, but two changes matter for patients.
The ATF has proposed revising Form 4473, the federal form for firearms purchases from a licensed dealer, to remove medical marijuana as a disqualifying factor. The revised form would keep the prohibition in place for recreational use only. Public comments were being accepted through July 2026.
Workplace protections are also shifting. With medical marijuana on Schedule III, employees using it with a valid prescription may now be entitled to reasonable accommodations under the Americans with Disabilities Act, similar to other prescribed medications. Employers in safety-sensitive industries still have latitude to restrict use, and accommodation requests are evaluated case by case.
Senate Bill 150 Changed School Rules
Senate Bill 150, from the 2023 session, put a set of parental-rights requirements on Kentucky public school districts covering privacy, health notifications, and curriculum.12Kentucky Legislative Research Commission. Kentucky General Assembly – Senate Bill 150
Districts cannot require staff or students to use pronouns for a student that don’t match the biological sex on that student’s birth certificate. A parent can give written consent for different pronoun use, but the default is biological sex. Schools also cannot maintain policies designed to keep student information confidential from parents.
Local school boards must adopt policies restricting access to restrooms, locker rooms, and shower rooms based on biological sex. On overnight school-sponsored trips, students must be housed with others of the same biological sex.
Schools must obtain parental consent before administering questionnaires or screening forms to students, rather than relying on blanket consent forms. School personnel can still seek emergency medical or mental health services under district policy without prior parental approval when the situation demands it. The bill also set new requirements for any public school course or program covering human sexuality.
Tighter Rules on Tobacco and Vape Sales
House Bill 11 from the 2024 session prohibits retailers from selling tobacco and vapor products covered by the federal Tobacco Control Act to anyone under 21 and built an enforcement system around that rule.13Kentucky Legislative Research Commission. Kentucky General Assembly – House Bill 11
For buyers, the practical effect is straightforward: expect ID checks at any Kentucky retailer selling cigarettes, cigars, or vape products. For retailers, penalties escalate with repeat offenses, and four violations within two years lands a store in the state noncompliance database with a one-year ban on selling vapor products. Retailers with unpaid fines more than 60 days overdue cannot sell any covered products until they clear the debt.
2025 and 2026 Session Highlights
Beyond the income tax cut, several 2025 laws took effect on June 28, 2025, or later. House Bill 15 lets 15-year-olds apply for a motor vehicle instruction permit, adding a year of supervised driving before the intermediate license at 16. House Bill 190 requires school boards to develop plans for advanced coursework and accelerated learning in grades 4 through 12, with automatic enrollment for qualifying students. Senate Bill 1 established the Kentucky Film Office within the Cabinet for Economic Development and a Kentucky Film Leadership Council.
The 2026 session added more.14Kentucky Legislative Research Commission. Kentucky General Assembly – Legislative News Release House Bill 2 aligns Kentucky’s Medicaid program with federal requirements, including community-engagement mandates for certain able-bodied adults, changes to cost-sharing and eligibility reviews, and a public performance dashboard. House Bill 904 raised the sports-wagering age from 18 to 21, banned negative-outcome bets on in-state college athletes, and created a regulatory framework for fantasy sports. House Bill 312 allows Kentuckians aged 18 to 20 to obtain a provisional concealed-carry permit after a background check and firearms training. House Bill 139 seeks to remove felons and noncitizens from voter rolls and aligns state campaign-contribution limits with federal thresholds.