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Kentucky sales tax, explained.

Thresholds, rates, taxability, filing schedules, and the Kentucky DOR — everything a remote seller needs to know about Kentucky, on one page.

Economic nexus threshold
$100,000
Statewide base rate
6%
Transaction threshold
200
LouisvilleLexingtonBowling GreenOwensboroCovington
Kentucky · major filing jurisdictions
Nexus · Kentucky

When you owe sales tax in Kentucky.

Either kind of nexus on its own creates the obligation to register, collect, and remit. Kentucky applies an OR-type economic nexus test — you cross it when you meet either the sales dollar threshold or the transaction count, whichever comes first.

Economic nexus
Threshold
$100,000 in gross sales of tangible personal property, digital property, or services delivered to Kentucky purchasers
Measurement type
Sales OR transactions — whichever is reached first (OR-type test)
Measurement period
Previous or current calendar year
Included
Gross sales including marketplace sales count toward both the sales and transaction prongs — exempt sales and resale transactions are not excluded
Marketplaces
Marketplace-facilitated sales count toward your threshold even when the marketplace collects and remits the tax on your behalf
Physical nexus
Office or business locationEmployees / remote staffInventory · warehouse · 3PLAgents, reps, contractorsConstruction site activity

Any physical presence in Kentucky — including a remote employee working from home — creates nexus from your first sale, with no sales-volume minimum. Inventory stored at a Kentucky third-party fulfillment center is the most common trigger for e-commerce sellers.

Rates · Kentucky

What you'll collect, city by city.

Kentucky imposes a single flat statewide rate of 6% — there are no county or city add-ons. Every address in the state, from Louisville to Covington, charges the same 6% on tangible property, SaaS, and digital goods.

JurisdictionCombined rateTangible propertyDigital goodsSaaSServices
KentuckyStatewide rate6%6%6%6%0%
Louisville6%6%6%6%0%
Lexington6%6%6%6%0%
Bowling Green6%6%6%6%0%
Owensboro6%6%6%6%0%
Covington6%6%6%6%0%

Kentucky has no local sales tax — the 6% state rate is the total rate at every address in the state. Professional services are not taxable. Rates verified as of June 11, 2026.

Need the exact rate for a Kentucky address or invoice? Our calculator confirms the 6% combined rate for any Kentucky zip code.

Open the sales tax calculator
Taxability · Kentucky

Is your product taxable here?

Kentucky is broader than most states — it explicitly taxes SaaS and digital goods at the same flat 6% rate as physical goods, making it one of the more expansive digital-economy tax regimes in the US.

Product categoryStatusWhat to know
Tangible personal propertyTaxablePhysical goods delivered into Kentucky are taxable at 6% regardless of the destination city — there are no local rate variances.
SaaS & cloud softwareTaxableKentucky explicitly taxes remotely-accessed software-as-a-service for both B2B and B2C customers under its digital property rules — no download is required for the tax to apply.
Digital goodsTaxableElectronically delivered products including e-books, digital audio and video, and other digital content are taxable as digital property at 6%.
Professional servicesNot taxableGeneral and professional services — consulting, legal, design, accounting — are exempt from Kentucky sales tax.
Bundled hardware + softwarePartialWhen software is bundled with taxable hardware and not separately stated, the entire charge may be taxable. Separately-stated SaaS remains taxable on its own.
Filings · Kentucky

Filing schedules and due dates.

The Kentucky Department of Revenue assigns your filing frequency at registration based on expected tax liability. Returns must be filed for every assigned period, including periods with no taxable sales.

FrequencyReturnDue dateWho it applies to
MonthlyMost commonKentucky Sales and Use Tax Return (Form 51A102)20th day of the following monthMost remote sellers above the annual threshold
Monthly with accelerated prepaymentForm 51A102 plus prepaymentPrepayment due by the last day of the current month; return due the 20th of the following monthHigh-volume filers as assigned by the Department of Revenue
QuarterlyKentucky Sales and Use Tax Return (Form 51A102)20th day of the month following the quarter endSmaller sellers with lower annual tax liability, as assigned
AnnualKentucky Sales and Use Tax Return (Form 51A102)January 20 for the prior calendar yearVery small sellers with minimal Kentucky tax liability, as assigned

Crossed the threshold, or about to?

A Commenda expert will review your Kentucky exposure, register you with the Kentucky Department of Revenue, and take over the filing calendar — usually within a week.

The state authority

Kentucky DOR — the state's tax office.

The Kentucky Department of Revenue administers sales and use tax through a single online portal. Registration, filing, payment, and account management are all handled through the Kentucky Tax Portal at revenue.ky.gov.

revenue.ky.gov

Registration requires a Tax Portal username and password. A State Tax ID (8-digit account number) is needed for existing accounts. New registrants create an account online.

What you can do there
  • Register for a sales tax permit

    Register online through the Kentucky Tax Portal. Foreign businesses can register, but you will need a Kentucky Tax Portal account and your business entity details.

  • File returns and pay

    All sales and use tax returns, prepayments, and amended filings are submitted through the Kentucky Tax Portal — ACH and card payments accepted.

  • Confirm the rate for any address

    Kentucky's flat 6% rate applies statewide, but the DOR portal can confirm current rate information and any updates.

  • Verify a resale certificate

    Confirm that a customer's Kentucky resale certificate or exemption certificate is valid before honoring an exemption claim.

Exposure & exemptions · Kentucky

If you're behind, or your buyers are exempt.

Back-period exposure & voluntary disclosure

Kentucky participates in the Multistate Tax Commission's voluntary disclosure program, which can limit lookback and reduce penalties for sellers who come forward before the DOR contacts them.

Lookback
Generally 3 years under a voluntary disclosure agreement — unlimited if the state initiates contact first
Penalties
Typically waived under a VDA
Interest
Still due on back taxes — relief is limited
Unfiled returns
No statute of limitations applies until a return is filed — exposure can extend further back than 3 years without a VDA

Exemption certificates accepted

Collect a valid Kentucky exemption certificate at the time of sale and retain it in your records — the burden of proof rests with the seller to document the exemption.

Resale
Kentucky Resale Certificate (Form 51A105) — accepted for sales to licensed resellers
Multi-state
MTC Uniform Sales & Use Tax Exemption Certificate accepted; Kentucky is a Streamlined Sales Tax member state
Manufacturing
Kentucky Exemption Certificate (Form 51A158) for machinery and equipment used directly in manufacturing
Agriculture
Kentucky Farm Exemption Certificate (Form 51A158) for qualifying agricultural inputs and equipment

FAQ · Kentucky

Kentucky questions, answered.

The questions remote sellers ask us most about Kentucky.
Read our FAQ library

Yes. Kentucky explicitly taxes software-as-a-service and other remotely-accessed digital services at the standard 6% rate, for both B2B and B2C sales. Kentucky's digital property rules are broader than most states — no download is required for the tax to apply.

Currently $100,000 in gross sales OR 200 separate transactions delivered to Kentucky purchasers in the previous or current calendar year, whichever is reached first. Note that per HB 757, the 200-transaction prong is scheduled to be removed effective August 1, 2026, leaving only the $100,000 sales test.

Yes. Gross sales made through marketplace facilitators count toward your $100,000 threshold and your 200-transaction count, even when the marketplace collects and remits Kentucky sales tax on your behalf.

No. Kentucky has a single flat statewide rate of 6% with no county or city add-ons. The rate is the same at every delivery address in the state, which makes compliance simpler than in home-rule states like Colorado or Louisiana.

Yes. Kentucky taxes electronically delivered digital products — e-books, digital audio, digital video, and similar content — at the full 6% rate as digital property. This is one of the broader digital-economy tax regimes in the country.

Kentucky can assess back taxes, interest, and penalties going back as far as the period when nexus was first established. Without a voluntary disclosure agreement, there is no statute of limitations on unfiled returns, and lookback exposure can extend beyond three years.

Kentucky requires registration by the first of the month following 30 days after the threshold is met. Once registered, you must collect tax from the point the threshold was crossed, not just from the registration date.

Yes. Commenda monitors your Kentucky exposure, registers you with the Kentucky Department of Revenue, calculates the correct 6% rate on every transaction — including SaaS and digital goods — and files each return on the assigned schedule. Book a call to see it on your own data.

United States

Sales tax, state by state.

* No state-level sales tax. Alaska's local jurisdictions still enforce economic nexus through the ARSSTC.