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7/1/2013 – repealed effective 7/1/2019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

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Kentucky Amends Remote Seller and Marketplace Facilitator Registration Requirements

Remote sellers and marketplace facilitators are now required to register and collect tax no later than the first day of the month that is at the most 60 days after an economic nexus threshold is met.

Kentucky Enacts Marketplace Nexus Provisions

Kentucky has enacted legislation that affects marketplace providers that exceed the state’s economic nexus threshold, effective July 1, 2019.

Kentucky Enacts Economic Nexus Legislation

The Kentucky Legislature has enacted legislation containing economic nexus provisions that become effective July 1, 2018.

October 1, 2018 Remote Seller Deadline for Multiple States

The October 1, 2018 remote seller compliance deadline is approaching for a number of states. Click on the links below for our previous news items with more details. Alabama Enacts Economic Nexus Provision Illinois Enacts Economic Nexus Legislation Indiana Enacts…

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

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.

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.

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.