The Kentucky sales tax rate is 6% statewide. That rate applies to every taxable transaction in the state, regardless of where it takes place. Kentucky has one of the simpler sales tax structures in the US, but it’s not automatic. Since 2018, Kentucky has expanded its taxable base, particularly around services, and the requirements for registration, filing, and exemption documentation apply just as they do in other states.

Below, we’ll discuss how the 6% rate works in practice, what businesses need to know about nexus and filing obligations, and how to ensure what you collect matches what you owe.

Highlights

• Kentucky’s sales tax rate is a flat 6% statewide, with no local or county taxes layered on top.

• Kentucky taxes many services that other states don’t, including landscaping, photography, and fitness memberships.

• Businesses that sell into Kentucky must register with the Department of Revenue before they collect tax. Remote sellers that make more than $100,000 in sales or 200 transactions in the state annually have the same obligations as businesses with physical presence in the state.

What is the Kentucky sales tax rate?

Kentucky has a flat statewide sales tax rate of 6%. That rate applies everywhere in the state so there are no city taxes, no county add-ons, and no special districts. This makes Kentucky one of the simplest states in the US for sales tax compliance: what you charge in Louisville is the same rate in Lexington, Bowling Green, or anywhere else in the state.

How does Kentucky’s sales tax rate work for businesses?

Before you collect sales tax, you’ll need sales and use tax permits from the Kentucky Department of Revenue. Once you’re registered, the state assigns your filing frequency (monthly, quarterly, or annually) based on your sales volume.

Here are the main rules that businesses should understand:

Nexus

You’re required to collect Kentucky sales tax if you have nexus in the state. This can be established by:

• Physical presence: An office, warehouse, employees, or inventory in Kentucky.

• Economic nexus (for remote sellers): Exceeding $100,000 in sales or 200 transactions in the state annually (taxable or exempt).

If you meet either threshold, you must collect and remit Kentucky sales tax.

Destination-based sourcing

Kentucky uses destination-based sourcing. That means sales tax is based on where the customer receives the goods, not where your business is located. Any shipped orders will use the delivery address to determine tax.

Taxable services

In 2018, Kentucky expanded its sales tax to cover many services that are tax-exempt in other states, including landscaping, janitorial services, photography, and fitness memberships. If you sell services, double-check your taxability because Kentucky’s list is longer than some businesses might expect.

Exemptions

Some common exemptions include unprepared food, prescription medications, and certain manufacturing equipment. If a buyer claims an exemption, you’ll need a valid exemption certificate to support it during an audit.

What are the local sales taxes in Kentucky?

Kentucky doesn’t allow local sales taxes. Cities and counties can’t impose their own rates, and there are no special tax districts. The statewide rate is the final rate everywhere.

Kentucky’s sales tax range in 2026

What are Kentucky’s sales tax rates by city?

Every city in Kentucky charges the same combined rate of 6%.

Here are the state’s largest cities:

What are Kentucky’s sales tax rates by county?

No Kentucky county levies a local sales tax either. All 120 counties use the same 6% rate.

Here are several of the state’s main counties:

How do you calculate Kentucky’s sales tax?

To calculate sales tax in Kentucky, multiply the sale price by 0.06. A $99.99 item generates about $6 in tax. A $1,200 purchase adds $72.

It gets a little more complicated for businesses that sell a combination of taxable and exempt goods or services. Not every product or service is taxed the same way, and many became taxable after the 2018 expansion.

Here are some examples:

• Unprepared food is exempt.

• Prescription medications are exempt.

• Some digital goods are taxable.

• Many services are taxable.

If your business processes a high transaction volume, manual calculations aren’t practical. Stripe Tax integrates directly into your payment flow, applies the correct rate based on the customer’s location and product category, and handles exemptions when you’ve assigned the right product codes. It also covers multistate calculations in the same system, which is important if Kentucky is one of several states where you have nexus. You can also check rates for specific transactions using Stripe’s sales tax calculator.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, value-added tax (VAT), and goods and services tax (GST) on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.