Kentucky Sales
Tax Rate

Kentucky imposes a 6% sales and use tax on most taxable retail transactions in 2026. Unlike many states, Kentucky does not allow cities or counties to add a general local sales or use tax, so the same 6% statewide rate applies across Kentucky for transactions subject to the general sales tax.

The tax applies to retail sales of tangible personal property, digital property and specifically taxable services. Kentucky use tax also applies at 6% when taxable property or digital property is purchased without sufficient Kentucky sales tax and is stored, used or consumed in the state.

Source: Kentucky Sales & Use Tax

What Is the Kentucky Sales Tax Rate in 2026?

The Kentucky sales and use tax rate is 6% in 2026 and there are no local general sales and use taxes.

This statewide structure makes rate selection simpler than in states where the total changes by city, county or special district.

How to Calculate Kentucky Sales Tax

Kentucky sales tax is generally calculated by multiplying the taxable sales price by 6%.

Taxable Sales Price × 6% = Kentucky Sales Tax

For example, a $100 taxable purchase generates $6 of Kentucky sales tax. Because Kentucky does not impose a general local sales tax, no additional city or county percentage is added to the standard statewide rate.

What Is Taxable in Kentucky?

Kentucky sales tax generally applies to tangible personal property, digital property and services that state law specifically identifies as taxable.

• Most retail sales of tangible personal property
• Digital property subject to Kentucky sales tax
• Admissions and certain recreational services
• Personal fitness training and massage services unless an exemption applies
• Website design, development and hosting services
• Parking and certain transportation-related services
• Certain repair, maintenance, security and design services
• Other services specifically listed as taxable under Kentucky law

Kentucky expanded the list of taxable services in recent years. Businesses selling services should not assume that services are automatically exempt simply because no tangible product changes hands.

Are Groceries Taxed in Kentucky?

Qualifying food and food ingredients are generally exempt from Kentucky sales and use tax, but prepared food is taxable.

Prepared food can include food sold heated by the retailer, food prepared by combining ingredients for sale as one item or food sold with eating utensils provided by the seller under the statutory definition.

Restaurant meals and many deli-style prepared food transactions are therefore subject to the 6% tax even though unprepared grocery staples can qualify for the food exemption.

Common Kentucky Sales Tax Exemptions

Kentucky provides exemptions for specific products, purchasers and uses rather than a broad exemption for all retail transactions.

• Qualifying food and food ingredients
• Certain prescription drugs and qualifying medical items
• Property purchased for resale with proper documentation
• Certain agricultural purchases when the exemption requirements are met
• Qualifying sales to exempt governmental or nonprofit organizations
• Other exemptions specifically provided by Kentucky statute

The seller should retain the exemption certificate or other documentation required to support a tax-free sale.

Kentucky Sales Tax vs. Use Tax

Kentucky use tax acts as a backstop when taxable property or digital property is purchased without paying at least 6% Kentucky sales tax.

Kentucky allows a credit for qualifying state sales tax paid to another state on the same property, but the credit cannot exceed the Kentucky use tax due. Local tax paid to another city, county or country does not create the same Kentucky state use tax credit.

Source: Kentucky Consumer Use Tax

Kentucky Remote Seller Economic Nexus

A remote retailer can be required to register and collect Kentucky sales and use tax when its Kentucky sales exceed the state's economic nexus threshold.

Kentucky requires remote retailers to register when, in the current or previous calendar year, they have at least $100,000 in Kentucky gross receipts or 200 or more separate Kentucky sales.

The threshold is an alternative test, so meeting either the sales-dollar threshold or the transaction-count threshold can create a collection obligation.

Source: Kentucky Sales & Use Tax Remote Retailer Guidance

Kentucky Marketplace and Online Sales

Online sales are not automatically exempt from Kentucky tax. A taxable item sold over the internet is generally treated the same as the same taxable item sold through a physical store.

Marketplace facilitators and sellers should identify who is responsible for collecting Kentucky tax on a facilitated sale. Direct sales made outside a marketplace can create a separate registration and collection obligation for the seller.

Kentucky Sales Tax Registration and Filing

Businesses making taxable sales in Kentucky generally must register for a sales and use tax account and file returns on the schedule assigned by the Department of Revenue.

Monthly sales tax returns are generally due on the 20th day of the following month. Quarterly and annual filing frequencies can apply based on the account. Kentucky also requires electronic filing and payment for sales and excise tax returns as the Department makes the functionality available through MyTaxes.

Source: Kentucky Online Filing and Payment Mandate

Source: Kentucky MyTaxes