If you’re planning to start selling goods or taxable services in Kentucky, obtaining a Kentucky sales tax permit is your first legal step toward compliance. Whether you’re a local retailer, ecommerce seller, or a remote business crossing the state’s economic nexus threshold, this 2025 guide explains everything you need to know to register, collect, and remit sales tax in the state of Kentucky, without unnecessary stress.

What Is a Sales Tax Permit in Kentucky?

A Kentucky sales tax permit authorizes your business to collect sales tax from customers on behalf of the state. Also known as a sales and use tax license, this permit is issued by the Kentucky Department of Revenue (DOR) and is required for most businesses engaging in taxable transactions within the state.

If you’re a remote seller or a marketplace facilitator, you are still required to register once you meet the state’s economic nexus standards. The goal is to ensure that all sellers, regardless of physical location, contribute fairly to Kentucky’s tax system.

Do You Need to Register for a Sales Tax Permit in Kentucky?

Here’s a quick overview of who needs to apply for a sales tax permit:

  • You have a physical presence in Kentucky (storefront, warehouse, office)
  • You sell taxable goods or services to Kentucky customers
  • You participate in trade shows or temporary selling events in the state
  • You are a remote seller who exceeds $100,000 in gross revenue or 200 separate transactions with Kentucky customers
  • You operate as a marketplace facilitator selling on behalf of third-party vendors

If any of the above apply, you need to complete a sales tax registration in Kentucky through the Department of Revenue.

Related: Understand sales tax nexus

Step-by-Step: How to Get a Sales Tax Permit in Kentucky

Here is a detailed process for how to register for a Kentucky sales tax permit in 2025.

1. Gather Your Business Information

Before starting, have the following details ready:

  • Federal Employer Identification Number (EIN)
  • Legal business name and entity type (LLC, Corporation, etc.)
  • Kentucky business address (if applicable)
  • Responsible party details (name, SSN, contact information)
  • Estimated monthly sales in Kentucky
  • NAICS code for your industry

2. Create a Kentucky One Stop Business Services Account

Visit the Kentucky Business One Stop Portal and create an account.

3. Complete the Application

Log in, choose the “Register a New Business” option, and follow the prompts. Select “Sales and Use Tax” as a tax type.

4. Submit the Application

After completing the registration, submit it for review. Ensure all details are accurate to avoid delays.

5. Receive Confirmation

Once approved, you’ll receive your Kentucky Sales Tax Account Number by mail or email. You must begin collecting tax starting from the effective date listed on your permit.

What Information Do You Need to Register?

Organizing your documentation beforehand can help speed up the registration process.

Business Identification

  • EIN or SSN (for sole proprietors)
  • Legal business name and trade name (DBA)

Contact Details

  • Primary business address (Kentucky or out-of-state)
  • Phone number and email
  • Responsible party or business owner contact

Tax Information

  • NAICS industry code
  • Estimated annual or monthly sales in Kentucky
  • Start date of business activities in the state

Having these documents on hand ensures you can complete your Kentucky sales tax registration without interruptions.

How Much Does It Cost to Register for a Sales Tax Permit in Kentucky?

There is no cost to register for a sales tax permit in the state of Kentucky. The permit itself is free, although you may be required to post a bond depending on your business type or prior tax history.

Keep in mind that failure to register when required can result in back taxes, penalties, and interest. It’s best to register as soon as you become eligible.

How Long Does It Take to Get Approved?

Applications submitted online are typically processed within 3 to 5 business days. If additional verification is needed, the process may take longer. You’ll receive your Kentucky sales tax account information by email or physical mail.

What Happens After You Register?

After receiving your Kentucky sales tax permit, you are required to:

  • Begin collecting sales tax at the applicable state and local rates
  • File returns according to your assigned filing frequency (monthly, quarterly, or annually)
  • Submit zero returns even if you did not make any sales during the period
  • Keep accurate sales and tax records for at least four years

Common Mistakes to Avoid

Avoid these pitfalls during or after your sales tax registration process:

  • Registering with incorrect or incomplete business information
  • Underestimating your monthly sales volume
  • Not registering as a remote seller when thresholds are exceeded
  • Ignoring marketplace facilitator obligations
  • Missing return deadlines or filing incorrect returns

Special Considerations for Remote Sellers

Kentucky enforces economic nexus rules for out-of-state businesses. If your remote sales exceed $100,000 or 200 separate transactions in the current or previous calendar year, you must register for a Kentucky remote seller sales tax registration.

Marketplace facilitators are also required to collect and remit sales tax on behalf of sellers using their platform. However, you may still need to register independently if you sell through multiple channels.

Related: Physical vs. economic nexus explained

Resources & Where to Register

  • Register Online: Kentucky One Stop Portal
  • Sales Tax FAQ: Kentucky Department of Revenue – Sales and Use Tax
  • Customer Support: Call (502) 564-5170 for business registration help

Simplify Sales Tax Compliance with Commenda

Managing Kentucky sales tax compliance, especially if you sell across multiple states, can quickly become complex. That’s where Commenda comes in.

Commenda helps businesses:

  • Register for state permits, including Kentucky
  • Track nexus exposure across jurisdictions
  • Automate ongoing sales tax filings
  • Maintain compliance with changing laws

From ecommerce sellers to service providers, our Global Sales Tax Platform ensures your business stays compliant and audit-ready.

Frequently Asked Questions (FAQs)

Do I need a Kentucky sales tax permit if I only sell online?

Yes. If your sales into Kentucky exceed $100,000 or 200 transactions in a year, you are required to register even if you have no physical presence in the state.

Can I collect sales tax before receiving my permit?

No. You must wait until your registration is complete and you’ve received your sales tax permit before collecting any tax from customers.

How do I know how much sales tax to charge?

Sales tax rates in Kentucky are uniform statewide at 6%, with no local surtaxes. However, you should always verify this on the Kentucky DOR site for the latest updates.

What happens if I miss a sales tax filing?

Late filings may result in penalties and interest. Kentucky also requires zero returns, meaning you must file even if you had no sales during the reporting period.

Does Commenda help with Kentucky tax filings?

Yes. Commenda supports multi-state registration, filings, and compliance, including Kentucky. We handle everything from initial registration to automated monthly or quarterly filings.