Kentucky Sales Tax Rate 2026: 6% Statewide, No Local Tax
Kentucky’s sales tax rate is 6%, and there are no local sales taxes, so 6% applies everywhere in the state.
| Kentucky sales tax (2026) | Rate |
|---|---|
| State rate | 6% |
| Local sales tax | None |
| Combined rate | 6% |
Rates as of July 1, 2026, from the Tax Foundation. Work out the tax on an order with our sales tax calculator.
Kentucky significantly expanded its digital goods and SaaS taxability in 2022, making it one of the more recent additions to the list of states that tax digital services. If you sell SaaS or digital subscriptions and have Kentucky customers, the 2022 expansion likely changed your compliance profile here.
Quick Reference
Section titled “Quick Reference”| Criterion | Detail |
|---|---|
| State Rate | 6% |
| Economic Nexus Threshold | $100,000 gross sales (rolling 12 months) |
| Transaction Threshold | None |
| Digital Goods / SaaS | Taxable (expanded January 1, 2023) |
| Typical Filing Frequency | Monthly |
| SST Member | Yes |
| Registration Portal | revenue.ky.gov |
Economic Nexus
Section titled “Economic Nexus”For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026
Kentucky’s economic nexus threshold is $100,000 in gross sales into Kentucky in the current or prior calendar year. Once exceeded, registration and collection are required.
Kentucky eliminated its 200-transaction alternative threshold on August 1, 2026. Marketplace-facilitated sales count toward the threshold.
Tax Rate and Product Taxability
Section titled “Tax Rate and Product Taxability”Kentucky sales tax calculator
Every rate that applies at a US ZIP code, worked out on your order.
Sales tax · Kentucky 40202
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Collecting sales tax in Kentucky and beyond?
GoodVat tracks your economic nexus in every state, registers you, charges the right rate on every order and files your returns.
Calculation only, not legal or tax advice. Verify with the state Department of Revenue before you file. State averages: Tax Foundation, July 1, 2026.
Kentucky’s state rate is 6%. Kentucky does not allow local sales taxes — the 6% rate is the only rate statewide. No county or city variations.
This statewide uniformity means simple, single-rate collection for all Kentucky orders.
Product Categories
Section titled “Product Categories”Taxable: Tangible personal property, digital goods and services (including SaaS — see below), most retail goods.
Exempt: Prescription drugs, most groceries (food for home preparation is exempt), qualifying agricultural inputs, certain medical equipment.
Digital Goods and SaaS — 2022 Expansion
Section titled “Digital Goods and SaaS — 2022 Expansion”Kentucky made a major change to its digital goods taxability framework effective January 1, 2023, enacted through House Bill 8 in 2022. Kentucky now broadly taxes digital goods and services that were previously not taxable.
Post-2023 taxable digital products in Kentucky include:
- SaaS (software-as-a-service) — now taxable
- Downloaded software — taxable (previously taxable in some forms)
- Digital audio/visual content (streaming services, music downloads, ebooks, movies) — now taxable
- Video gaming subscriptions and downloads — now taxable
- Digital subscriptions generally — now taxable
Kentucky’s 2022 expansion was one of the most significant digital goods taxability changes among US states in recent years. Prior to January 1, 2023, SaaS was generally not taxable in Kentucky.
If you are a SaaS seller who evaluated Kentucky before 2023 and concluded you had no obligation, you need to reassess. Kentucky is now a clear taxable state for digital services.
The Kentucky Department of Revenue also expanded services taxability more broadly — certain personal services and other categories became taxable. If you sell services beyond digital products, review the full scope of the 2022 expansion for your industry.
Registration
Section titled “Registration”Kentucky is an SST member state. Register through the SSTRS at streamlinedsalestax.org for multi-state coverage including Kentucky.
For Kentucky-only registration:
- Go to the Kentucky Revenue Cabinet portal: revenue.ky.gov
- Access Kentucky Business One Stop (business.ky.gov)
- Register for a Sales and Use Tax Account
- Provide EIN and business information
- You will receive a Kentucky Sales and Use Tax account number
Registration is free.
Foreign Sellers
Section titled “Foreign Sellers”Kentucky accepts foreign business registrations. A US EIN is required. A Kentucky registered agent is not required for remote sellers.
Filing Frequency and Deadlines
Section titled “Filing Frequency and Deadlines”| Annual Tax Liability | Filing Frequency |
|---|---|
| Less than $1,200 | Annual |
| $1,200–$12,000 | Quarterly |
| More than $12,000 | Monthly |
Monthly due dates: Returns due by the 20th of the following month (e.g., January return due February 20).
Returns are filed through the Kentucky Revenue Cabinet portal.
Compliance Notes
Section titled “Compliance Notes”2022 expansion — critical for digital sellers: If you sell SaaS, streaming subscriptions, digital content, or any digital services, and you have not reviewed your Kentucky obligations post-January 2023, do so now. The expansion is broad and the change was significant.
Back taxes risk: The Kentucky DOR may assert liability from January 1, 2023 if you were selling covered digital services without collecting. Consider a proactive registration and voluntary disclosure if you have been non-compliant since the expansion.
No local rates: Kentucky’s single statewide rate simplifies compliance. One rate (6%) applies to all Kentucky orders.
SST member: Kentucky’s SST participation means the SSTRS handles registration alongside other SST states.
Amazon FBA: Amazon operates in Kentucky. FBA inventory creates physical nexus from dollar one.
Kentucky Sales Tax FAQ
Section titled “Kentucky Sales Tax FAQ”What is the sales tax rate in Kentucky?
Section titled “What is the sales tax rate in Kentucky?”Kentucky’s sales tax rate is 6%. There are no local sales taxes, so the same rate applies everywhere in the state.
What is the Kentucky economic nexus threshold?
Section titled “What is the Kentucky economic nexus threshold?”Remote sellers must register and collect Kentucky sales tax once they make more than $100,000 in gross sales into the state (rolling 12 months). There is no separate transaction-count threshold.
Is SaaS taxable in Kentucky?
Section titled “Is SaaS taxable in Kentucky?”Yes. Kentucky taxes digital property, and since January 1, 2023 it also taxes access to prewritten software, which covers most SaaS.
How often do you file sales tax in Kentucky?
Section titled “How often do you file sales tax in Kentucky?”Most sellers file monthly. Kentucky assigns your filing frequency when you register, based on how much tax you collect, so lower-volume sellers may file less often.