KENTUCKY - Your paycheck just got a raise, your digital privacy is finally yours, and the rules for your hybrid car just changed. While the fireworks were popping over the Ohio River, a new set of statutes officially hit the books in the Commonwealth. The General Assembly’s latest updates include one of the most aggressive tax cuts in recent history and a major overhaul of digital rights that puts Kentucky ahead of most of the country.
From a bigger take-home pay to a crackdown on "festival seltzers," here are the 5 laws now effective in Kentucky as of January 1, 2026.
1. The "Automatic" Pay Raise (HB 1)
If you live and work in Kentucky, your first paycheck of 2026 will look a little different—in a good way.
- The Law: The state’s individual income tax rate has officially dropped again.
- The Big Change: The rate has been cut from 4.0% to 3.5%. While 0.5% might sound small, it adds up to hundreds of dollars a year for the average family. This is part of the state's long-term plan to eventually phase out the income tax entirely, meaning you keep more of what you earn starting right now.
2. The "Right to Delete" Your Data (HB 15)
Kentucky has officially joined the small list of states with a comprehensive "Consumer Data Protection Act," and it is a game-changer for online privacy.
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The Law: Companies that process the data of over 100,000 Kentuckians (or sell data of over 25,000) must now comply with strict privacy standards.
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The Impact: You now have the legal right to access, correct, and delete your personal data held by these companies. More importantly, you can opt out of having your data sold or used for targeted advertising. If a website tracks you, you now have the power to tell them to stop.
3. The "Hybrid Loophole" is Closed (And You Save Money)
If you drive a standard hybrid (like a Prius that you don't plug in), the state just gave you a break.
- The Law: Changes to the vehicle ownership fees have reshuffled who pays for the roads.
- The Big Change: The ownership fee for standard hybrids has been eliminated entirely. However, if you drive a fully Electric Vehicle (EV) or a Plug-in Hybrid, your fees are going up slightly (to roughly $126) to account for road maintenance costs, since you aren't paying gas tax.
4. The "Vape Shop" Shake-Up (SB 100)
You may notice fewer options on the shelves at your local convenience store starting this month.
- The Law: A strict new licensing and enforcement law for vape and nicotine products is now in full effect.
- The Impact: Retailers must now hold a specific state license to sell these products, and they are restricted to selling only products that are FDA-authorized or currently pending specific FDA review. This effectively bans thousands of unauthorized, colorful disposable vapes that have flooded the market in recent years.
5. No More "Hemp Seltzers" at the Fair (SB 202)
The "Delta-8" gray market is getting some clear guardrails this year.
- The Law: New regulations on THC-infused beverages have kicked in.
- The Change: You will no longer find intoxicating hemp-derived drinks sold at family-friendly venues like fairs and festivals. The law bans the sale of these beverages at such events and enforces a strict 5mg THC cap per can for products sold elsewhere, treating them more like alcohol with strict age verification (21+).
Bonus: The "Permit" Shift
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Learner's Permits: Updates to the licensing system now allow 15-year-olds to apply for their instruction permit, provided they pass the written and vision tests. This aims to give young drivers more time to practice behind the wheel before hitting the road solo.
