What is the Kentucky sales tax? Kentucky: Sales Tax Handbook

Kentucky:

Kentucky Sales Tax Rate KY Sales Tax 2016

State Sales Tax Local Sales Tax Range Average Local Tax Average Combined Tax Max Combined Tax
6.00% N/A N/A 6.00% 6%

2016 Kentucky Sales Tax Handbook

These rankings show how the Kentucky sales tax compares to the other 49 states + DC. The state with the highest sales tax is ranked 1st, and states with the same sales tax have a tie rank.

Kentucky's Sales Tax By The Numbers:

Kentucky has a higher-than-average state sales tax rate, but the actual sales tax rates in most Kentucky cities are lower than average when compared to states that allow localities to collect sales taxes (Kentucky does not).


Rankings by Average State + Local Sales Tax:

  Ranked 33rd highest by combined state + local sales tax

  Ranked 41st highest by per capita revenue from state + local sales taxes ($698 per capita)


Rankings by State Sales Tax Only:

  Ranked 7th highest by state sales tax rate

  Ranked 31st highest by per capita revenue from the statewide sales tax ($689 per capita)



Download Kentucky datasheet Printable PDF Kentucky Sales Tax Datasheet

Kentucky has a statewide sales tax rate of 6.00%, which has been in place since 1960.

Unlike many other states, Kentucky doesn't allow municipal governments to collect a local option sales tax. Therefore, sales tax rates will be the same across the entire state.

This page provides an overview of the sales tax rates and laws in Kentucky. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the Kentucky Sales Tax Handbook's Table of Contents above.

What is exempt from sales taxes in Kentucky?

Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how Kentucky taxes five types of commonly-exempted goods:


Clothing

  6.%

Groceries

  EXEMPT

Prepared Food

  6.%

Prescription Drugs

  EXEMPT

OTC Drugs

  6.%

For more details on what types of goods are specifically exempt from the Kentucky sales tax see Kentucky sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Kentucky? Taxation of vehicle purchases in particular are discussed in the page about Kentucky's sales tax on cars.

Are services subject to sales tax in Kentucky?

"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Kentucky, services are generally not taxable.

About the Kentucky Sales Tax

The state of Kentucky has very simple sales tax rate, with no local sales and use taxes. Alcoholic beverages, which were previously exempt from the state sales tax. are now taxable.

Is the Kentucky Sales Tax Destination-Based or Origin-Based?

Kentucky is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within Kentucky from a Kentucky vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.

Is Kentucky a Streamlined Sales Tax State?

Kentucky is a member of the Streamlined Sales and Use Tax Agreement, which means that the Kentucky Department of Revenue has taken significant steps to simplify Kentucky's sales tax rules and administration process.

Contact the Kentucky Department of Revenue

The Kentucky Sales Tax is administered by the Kentucky Department of Revenue. You can learn more by visiting the sales tax information website at revenue.ky.gov.

Phone numbers for the Sales Tax division of the Department of Revenue are as follows:

  • Local Phone: (502) 564-3226

Learn More: Our Book Recommendations

If you would like to learn more about how to manage your Kentucky sales taxes, we recommend the following books:


Small Business Taxes For Dummies

This introductury book assists both current and aspiring small business owners with important tax planning issues, and covers a wide variety of small business tax topics.

Buy on Amaxon

A Guide to Sales and Use Tax

This book provides information and insights on how to comply with a multitude of sales and use tax laws and regulations. This is our recommendation if you need an in-depth look into sales taxes.

Buy on Amaxon

Simplify Kentucky sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.


Kentucky Sales Tax Rates by Zip Code:

Need an updated list of Kentucky sales tax rates for your business? Download our Kentucky sales tax database!


** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/kentucky