Dave Small who was elected to Redditch Borough Council in Thursday's elections, will now be investigated amid claims he posted racist and homophobic remarks on social media.
Mr Small won his seat in the Church Hill ward, topping the poll with 665 votes.
A Ukip spokesman said: "Dave Small has been suspended with immediate effect, pending a disciplinary hearing to determine the final outcome."
It was reported at the weekend that in February 2013, Mr Small referred to gay people as "perverts" and expressed opposition to gay people being allowed to marry.
It is also alleged that he said that "thousends mor scroungers" would soon arrive in the UK as a result of a range of coalition government policies.
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