The Kentucky House of Representatives easily advanced a bill further reduce the state’s individual income tax rate.

House Bill 1 — which would reduce the state income tax rate from 4% to 3.5% beginning January 1, 2026 —became the first bill to advance off the House floor in 2025 on Thursday.

With 90 votes to pass, House Bill 1 is now on its way to the Senate. After roughly an hour of debate, some Democrats joined Republicans in passing the bill, but not without warning about the direction of the state’s finances.

The bill to cut Kentucky’s individual income tax rate to 3.5% passed the House with bipartisan support and is expected to clear the Senate next month.