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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7/1/2013 – repealed effective 7/1/2019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.

Drugs Were Not Exempt in Kentucky as Prescription Drugs

The Kentucky Board of Appeals issued a ruling on the appeal of PCA-Corrections, LLC seeking to overturn sales taxes levied upon drugs supplied to inpatient rehabilitation and convalescent institutions by the Kentucky Department of Revenue. The Board held that the…

Government Vendors Must Register for Sales and Use Tax in Kentucky

A permanent regulation has been adopted that requires vendors entering into contracts to supply taxable goods and services to the Commonwealth of Kentucky to register with the Kentucky Department of Revenue for a sales and use tax number. Under this…

Kentucky Repeals Packaged Liquor Exemption

Kentucky will no longer allow a sales tax exemption for the sale of packaged distilled spirits, wine and malt beverages not consumed on the premises licensed for their sale.

Parts Used in Warranty Fulfillment Taxable as Retail Sale in Kentucky

A Kentucky court found that parts and supplies used in the fulfillment of maintenance contract obligations were subject to sales and use tax as a retail sale. The court stated that since no tangible personal property is transferred at the…

Kentucky Tax Due by Pay Phone Operator

The Kentucky Board of Tax Appeals held that a company that operated pay phones was providing communications services subject to Kentucky sales tax.

Out-of-State Printers Exempt in Kentucky

An out-of-state commercial printer or mailer engaged in business in Kentucky is not required to collect use tax on sales of certain printing or direct mail advertising materials. To qualify, the advertising materials must be printed out-of-state and delivered out-of-state…

Repair or Replacement Parts Taxable in Kentucky

A manufacturer claimed that screws, gaskets, couplings, fittings, and fasteners were exempt as industrial tools, machinery, or as a result of their use within a qualified enterprise zone. The Board of Appeals, however, rule in favor of the Department of…

Kentucky Passes Bill Outlining Multiple Sales and Use Tax Changes.

The State of Kentucky has passed H.B. 267, without the signature of the governor.

Kentucky Governor Signs Comprehensive Sales and Use Tax Bill for SSTP Conformity.

Kentucky Governor Ernie Fletcher signed into law H.B. 272. Among the provisions of the bill is an adoption of affiliate agency nexus; and new taxes on telecommunication services and prepaid calling services.

Kentucky Redefines Tangible Personal Property.

In an amendment to previous legislation, the State of Kentucky has changed the official definition of “Tangible Personal Property” to include items that are “perceptible to the senses, regardless of the method of delivery.” This new definition allows the state…

Ongoing equipment leasing not allowed occasional sale exemption in Kentucky.

A corporation was set up to acquire and lease equipment to its sister corporations and has not been remitting sales tax on these transactions, which are ongoing. The corporation and all its sister corporations are all 100% owned by the…

Kentucky streamlined code exempts certain medical devices.

Changes to KRS 139.472 as a result of House Bill 293 broaden the exemption granted to medical items and clarify what items are included in the exemption.

Kentucky issues rules on purchases by advertising agencies.

A new Kentucky regulation clarifies that charges by an advertising agency to provide its customer with advertising services is exempt from tax but the sale of tangible personal property is taxable.

Kentucky seller liable for tax on invalid certificates.

The Kentucky Board of Appeals found that sellers accepting incomplete or obviously invalid sales tax exemption certificates would be held liable for sales tax if the purchaser does not either correct the exemption certificate or pay the sales tax. The…

Kentucky requires that an exemption certificate be filled out properly and completely in order to be valid.

If an exemption certificate is filled out properly and completely, the purchaser and not the seller is responsible for any future tax liability. However, if the seller accepts the wrong exemption form or if it is not properly filled out…

Kentucky clarifies the definitions and exemptions for prosthetic devices and physical aids.

Prosthetic devices and physical aids can mean artificial devices prescribed by a licensed physician.” Devices and aids that meet this definition are exempt from sales and use taxes without being subject to other requirements. The Kentucky Board of Tax Appeals…