Kentucky: Sales Tax Handbook
Kentucky Sales Tax Rate
|State Sales Tax||Local Sales Tax Range||Average Local Tax||Average Combined Tax||Max Combined Tax|
|6%||0% - 2.75%||0.008%||6.008%||8.75%|
2023 Kentucky Sales Tax Handbook
Kentucky Table of Contents
- List of Local Sales Tax Rates
- Sales Tax Calculator
- Sales Tax Exemption Certificates
- Sales Tax Info For Businessowners
- Taxable vs. Non-Taxable Purchases
- Sales Tax on Cars & Vehicles
- More Information
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 local sales taxes from Kentucky's 211 local tax jurisdictions are taken into account.
Rankings by Average State + Local Sales Tax:
Ranked 37th 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 8th highest by state sales tax rate
Ranked 31st highest by per capita revenue from the statewide sales tax ($689 per capita)
Printable PDF Kentucky Sales Tax Datasheet
Kentucky has a statewide sales tax rate of 6%, which has been in place since 1960.
Municipal governments in Kentucky are also allowed to collect a local-option sales tax that ranges from 0% to 2.75% across the state, with an average local tax of 0.008% (for a total of 6.008% when combined with the state sales tax). The maximum local tax rate allowed by Kentucky law is <span class='text-muted'>N/A</span>. You can lookup Kentucky city and county sales tax rates here.
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:
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 Amazon
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 Amazon
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!