Kentucky lawmakers completed their work Tuesday to reduce the state’s individual income tax rate, delivering on a top Republican priority just five days into this year's session. Final passage came on a 34-3 Senate vote to lower the tax to 3.

As blue state governors and lawmakers propose making their states more costly places to live and work, their red state counterparts are seeking to do the opposite.

A bill that would further cut the state’s income tax rate is headed to Kentucky Gov. Andy Beshear’s desk after final passage Tuesday in the Kentucky Senate.

The bill will lower Kentucky’s individual income tax rate from 4% to 3.5% in 2026, a move projected to lower state revenue by $718 million annually.