The Ultimate Kentucky Sales Tax Guide

Even though Kentucky only has a state sales tax (making it a single sales tax state), it’s still important to understand the state’s sales tax regulations if you sell taxable products and services to Kentucky residents.  

This Kentucky sales tax guide will address the most critical questions, such as how to collect sales tax, who has to collect it, whether services are taxable in the state, and more.

Additionally, we'll introduce you to Zamp, a trusted tax management platform that ensures sales tax compliance throughout the process.

Kentucky Sales Tax Rate Range 2025

Kentucky has a single sales tax rate of 6%. This means that cities and counties do not impose a local sales tax. Many states, such as Kansas or Texas, allow cities and counties to have additional local taxes on top of the state-level tax.

Therefore, shipping to Kentucky residents is simpler because the sales tax rate is 6% regardless of whether the recipient is in Arlington, Barlow, or Lexington (or anywhere else in the state).

However, if you’re in Kentucky and sell to customers in other states, you’ll need to know their sales tax rates if you have nexus in those states. You can use our sales tax calculation service to find the rates in other states!

Collecting Kentucky Sales Tax from Customers

If you sell goods or services in Kentucky or to Kentucky-based customers, you may have questions about collecting the state sales tax.

We’ll address the most common questions below. 

Do I Have to Collect Kentucky Sales Tax from Customers?

Online sellers or business owners who reach nexus based on physical or economic activity must collect sales tax from their customers. However, you may be exempt from collecting sales tax if you do not achieve nexus.

What Creates Sales Tax Nexus in Kentucky?

Some factors that create nexus in the state include:

• Economic Nexus: Online businesses achieve nexus when they have 200 or more sales transactions or generate more than $100,000 in gross receipts in Kentucky. 
• Physical Location: Businesses have a physical nexus if they have a physical presence, such as an office, repair shop, warehouse, meeting room, or a publicly listed phone answering service publicly attributed to the company or its representative.
• Employees: Businesses have a physical nexus if they have employees in Kentucky who solicit business or maintain an office for the business. 

Learn more about sales tax nexus and when you’re required to collect sales tax. 

Do I Have to Collect Sales Tax from Kentucky Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?

No. 

Kentucky has a marketplace facilitator law. This means that marketplaces like Amazon or Etsy should collect sales tax on behalf of third-party sellers on their platforms. 

However, if you have sales outside of the marketplace in Kentucky, you must collect sales tax on your non-marketplace sales when you have a physical or economic nexus.

Taxable Products in Kentucky

Most tangible personal property, such as clothes and digital products, are taxable in Kentucky. However, Kentucky doesn’t impose a sales tax on groceries. 

Let’s take a closer look at how products are taxed in Kentucky. 

Are Groceries Taxable in Kentucky? 

No. Grocery items are non-taxable in Kentucky. 

Is Clothing Taxable in Kentucky?

Yes, clothing is taxable in Kentucky.

Are Digital Products Taxable in Kentucky?

Yes, digital products are taxable in Kentucky. 

Is Software-as-a-Service (SaaS) Taxable in Kentucky?

Kentucky taxes prewritten computer software access services, which are otherwise known as Software-as-a-Service (SaaS).

Are Services Taxable in Kentucky?

Certain services, such as landscaping and pet care services, are taxed in Kentucky. However, not all services are taxable. We recommend contacting a sales tax professional to see whether the services you provide are taxed. You can book a free call with us here.

Tax-Exempt Items

In Kentucky, tangible personal property is presumed taxable unless there is a specific exemption for the item. There are exemptions for items such as:

• Food and food ingredients
• Prescription drugs
• Certain medical supplies

Unless the items you are selling are listed as exempt, they are considered taxable. You need a sales tax permit to collect sales tax. Below, we explore how to get one.

How to Register for a Kentucky Seller's Permit

You can apply for a seller’s permit online via the Kentucky Business One Stop Portal. Alternatively, you can mail Form 10A100 to the Kentucky Department of Revenue.

Learn how sales tax registration works in every US state.

Do I Need a Kentucky Seller's Permit if I Only Sell Temporarily in the State?

Businesses that temporarily set up business in a location for a limited time are called “transient merchants” in Kentucky. 

They can either set up a business in one locality or travel the state while spending at most six months in one location. These merchants should post a bond and obtain a permit from the county clerk in each county where they conduct business.

Do I Need a Kentucky Sales Tax License if I’m Only a Wholesaler? 

Yes, you should apply for a resale certificate (Form 51A105) to be tax-exempt when buying goods you intend to resell. 

How to Collect Sales Tax in Kentucky

Kentucky has a state sales tax rate of 6% and no local taxes. 

Should You Collect Sales Tax on Shipping Charges in Kentucky?

Shipping charges for delivering taxable products are tax-exempt if the item is shipped to a location chosen by the customer, delivered by a postal service or common carrier, and stated separately. 

However, shipping charges are usually taxable if the seller delivers the product directly. Handling charges, on the other hand, are always subject to tax.

You can find the sales tax rates of your specific Kentucky city here.

How to File and Pay Sales Tax in Kentucky

Here are some ways you can file and pay your sales tax:

• Automated: Let Zamp handle your sales tax filing and remittance so you stay compliant across all states and never have to look at a sales tax return again! 
• Online: You can file and pay a Kentucky sales tax return online at the Kentucky Business One Stop Filing Website. 
• Electronic Payment: You can use debit and credit cards to pay electronically through the Kentucky Department of Revenue's Electronic Payment Application.
• EFT payments: Use the Tax Payment Solution Website for EFT payments. 
• Offline: Make checks or money orders payable to “Kentucky State Treasurer” and mail to:

KY Department of Revenue

Frankfort, KY 40619

Learn how to file and pay sales tax in other US states here.

FAQs on Paying and Filing Kentucky Sales Tax

What Is Use Tax?

Use tax is applied to taxable items and digital products bought for use in Kentucky when sales tax wasn't paid at the time of purchase. The use tax is the same as the state sales tax, which is 6%.

I Didn’t Collect Any Kentucky Sales Tax During This Period. Do I Still Need to File a Sales Tax Return?

Yes. You should file a zero sales tax return even if no taxes were collected during the period.

What Is the Penalty for Filing and Paying Kentucky Sales Tax Late?

If you are late to file, there is a 2% penalty of the total tax due that will be applied for each 30-day period (full or partial) that a tax return is late. The maximum penalty is 20% of the total tax due. 

If you are late to pay or fail to withhold or collect sales tax, there is also a 2% penalty of the total tax due for each 30-day period (full or partial) that a payment is late. The maximum penalty is 20% of the tax not timely withheld, collected, or paid .

How Often Do I Need to File and Pay Sales Tax in Kentucky?

Sales tax returns are due every month, but the Department of Revenue may permit less frequent filings based on the annual sales tax amount reported. Filing frequencies are programmatically adjusted by the Department each June.

Kentucky Sales Tax Due Dates

The due dates for monthly Kentucky tax filing are:

Taxable Period	Filing Due Date
January 2025	February 20, 2025
February 2025	March 20, 2025
March 2025	April 21, 2025
April 2025	May 20, 2025
May 2025	June 20, 2025
June 2025	July 21, 2025
July 2025	August 20, 2025
August 2025	September 22, 2025
September 2025	October 20, 2025
October 2025	November 20, 2025
November 2025	December 22, 2025
December 2025	January 20, 2026

Due dates for quarterly Kentucky sales tax filing are:

Taxable Period	Filing Dates
Q1 (Jan-March) 2024	April 21, 2025
Q2 (Apr-June) 2024	July 21, 2025
Q3 (July-Sept) 2024	October 20, 2025
Q4 (Oct-Dec) 2024	January 20, 2026

Due dates for annual Kentucky filers are:

Taxable Period	Filing Dates
Year 2024	January 21, 2025

Let The Experts Handle Your Kentucky Sales Taxes

Are you looking to grow your business without the hassle of sales tax complexities? That's where Zamp comes in.

With Zamp, you’ll experience seamless onboarding, accurate tax calculations, and efficient one-click registrations and filings.

Ready for streamlined sales tax management? Get started with Zamp today!