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Kentucky Sales Tax

On this page you will find handy sales and use tax information about Kentucky.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Kentucky that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6.000%
Range of Local Rates

0%
Local Rates Apply to Use Tax

N/A
Remote Seller Nexus Rules
REPORTING REQUIREMENTS

7/1/2013 – repealed effective 7/1/2019
ECONOMIC NEXUS

10/1/2018 – see state notice and FAQ page
MARKETPLACE NEXUS

7/1/2019
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

October 1, 2012 - November 30, 2012

Go to Kentucky Amnesty Page
AMNESTY INCLUSION PERIODS

Taxable periods ending or transactions occurring after December 1, 2001 and prior to October 1, 2011.

TAX TYPES AND CONDITIONS

All taxes, penalties, fees, or interest subject to the administrative jurisdiction of the department, with the exception of the following: ad valorem taxes levied on real property pursuant, ad valorem taxes on motor vehicles and motorboats collected by the county clerks, ad valorem taxes on personal property levied pursuant to KRS Ch. 132 that are payable to local officials, and any penalties imposed under KRS 131.630 or 138.205 (pertaining to cigarettes).
AMNESTY BENEFITS

Penalties and 50% of interest waived.

Status

Inactive

Amnesty Filing Dates

June 4, 2010 - July 31, 2010

Go to Kentucky Amnesty Page
AMNESTY INCLUSION PERIODS

Taxes assessed and under protest as of January 19, 2010.

TAX TYPES AND CONDITIONS

Any taxes that have been assessed; all payments are considered final and not subject to refund or recovery.
AMNESTY BENEFITS

Interest and penalties waived.

Status

Future

Amnesty Filing Dates

Go to Kentucky Amnesty Page
AMNESTY INCLUSION PERIODS

Tax periods ending on or after October 1, 2011 but prior to December 1, 2021

TAX TYPES AND CONDITIONS

All taxes administered by the Department of Revenue; also includes certain federal obligations referred to the DOR for collection
AMNESTY BENEFITS

Penalties waived and 50% interest waived

Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

1 Sales Tax Jurisdiction
HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Kentucky Resale Certificate
TYPES OF EXEMPTIONS

Types of exemptions: resale, manufacturing, solid waste recycling, energy, security lighting products, newspaper production, groceries, prescription drugs

 

Entity types of exemptions: qualifying non-profit, educational, charitable, religious historical sites, cemeteries and federal, state and local government agencies

 

Kentucky Exemption Certificate Forms
State Links
State Tax Web Page

Kentucky Department of Revenue
Rate Look-Up Page

Kentucky Sales Tax Rate Look-Up
Registration Link

Register for Kentucky Sales Tax
History & Fun Facts
HISTORY

  • The law governing Kentucky sales and use tax was originally enacted in 1959 to fund bonuses for veterans.
  • Kentucky became a full member of Streamlined Sales Tax on October 1, 2005.
  • Kentucky only imposes sales tax at the state level. Local jurisdictions do not impose sales tax.
FUN FACTS
  • All receipts collected from sales and use tax on fees paid for breeding a stallion to a mare are deposited into a fund administered by the Kentucky Horse Racing Commission. From there, 80 percent of the receipts go into the Kentucky Thoroughbred Breeder’s Incentive Fund. When breeders register an unborn foal with the Fund, it allows the breeder of record to win cash awards in races throughout the U.S. and the world. The Fund administered over $14 million in awards in 2018 to breeders for races won.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Kentucky Manufacturer Denied Partial Energy Exemptions

A Kentucky court ruling was upheld that denied a manufacturer refunds of sales and use tax and utilities gross receipts license tax that the manufacturer sought based on energy-related partial exemptions. The exemptions were the partial exemption from sales and…

Insurance Companies Lose Unclaimed Property Case in Kentucky

The Franklin County Circuit Court in Kentucky rejected a challenge by Kemper Insurance Companies to the state\’s new unclaimed property law.

Kentucky Enacts Remote Seller Reporting Requirement

The legislation requires out-of-state non-collecting retailers who expect less than $100,000 in gross sales into Kentucky per calendar year to provide notice to customers to prompt the payment of use tax, effective July 1, 2013.

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Kentucky Enacts Amnesty Program

Kentucky has enacted legislation that authorizes the Department of Revenue to conduct a tax amnesty program during fiscal year 2012-2013.

Kentucky Expands Energy Independence Act Credit Program

Kentucky enacted legislation expanding the Incentives for Energy Independence Act credit program to include the in-state portion of a carbon dioxide transmission pipeline used exclusively for the purpose of transporting carbon dioxide to a point of sale, storage, or other carbon management applications.

Taxation of Software as Tangible Personal Property in Kentucky Deemed Correct

A Kentucky company that acquired licenses to use prewritten computer software along with the hardware needed to run the software sought a refund of the sales and use tax paid on the software, arguing that it was not tangible personal…

Kentucky Allows Expedited Protest Resolution Process

Kentucky Governor Steve Beshear has signed legislation that allows an expedited protest resolution process for any tax assessment that, as of January 19, 2010, has been protested, not been the subject of a final ruling and not been the subject…

Kentucky Legislation Updates SST Conformity – Digital Products

Kentucky Governor, Steve Beshear, has signed Streamlined Sales and Use Tax (SST) Agreement legislation that conforms to the Agreement\’s definitions for digital products.

Kentucky Manufacturer’s Purchase of Machinery Meets Requirements for Tax Exemption

The Kentucky Board of Tax Appeals has determined that machinery purchased to be used directly in the manufacturing process by a manufacturer and retailer of German meats and sausages in order to expand its operations to include wholesale production is…