A 1099 IT support specialist in Kentucky pays a flat 3.5% state tax on net profit, stacked on federal income tax and the 15.3% self-employment tax a W-2 employer would have split with you. Kentucky’s flat rate fell to 3.5% for 2026, though many counties add an occupational license fee on net profit, and every dollar of tools, parts and mileage you document on Schedule C cuts all three bills at once.