Kentucky Sales Tax: 6% Statewide Rate, No Local Sales Taxes, Registration on MyTaxes and the $100,000 Remote Seller Threshold

If you sell goods, digital products or certain services to customers in Kentucky, you need to understand the state sales tax. The rules are simpler than in many states. Kentucky charges a flat 6% sales and use tax on gross receipts or the purchase price, and the Department of Revenue states that Kentucky has no local sales and use taxes. You collect one rate, register with one agency and file one return. The harder questions are what is taxable, when returns are due and when an out-of-state seller has to register.

This guide covers how the tax works, how to register through MyTaxes, the filing schedule and the remote seller rules that changed in 2026. It is informational content, not legal or tax advice.

How the Kentucky Sales Tax Works

Kentucky's sales and use tax is 6% of gross receipts or the purchase price under KRS Chapter 139. The statewide rate is the only rate. A taxable sale in Louisville, Lexington, Bowling Green or a rural county carries the same 6%. Because Kentucky has no local sales and use taxes, cities and counties cannot add a percentage on top of the state rate, which is a common source of confusion for sellers who come from states with stacked local rates.

Here is what the math looks like. A taxable item priced at $50.00 carries $3.00 in tax, for a total of $53.00 at the register. A taxable item priced at $25.00 carries $1.50 in tax. Calculate the tax on the price you charge, and show the tax as a separate line on the receipt or invoice.

The tax reaches more than physical goods. Kentucky taxes tangible personal property, digital property and a list of services set out in KRS 139.200(2), which covers about 50 services. Do not assume that a service is exempt because it is not a product. If you provide services, check the statute or ask Revenue before you decide a particular service falls outside the tax.

Use tax is the other half of the system. If you buy taxable items from a seller that did not charge Kentucky tax, and you use those items in Kentucky, you owe the 6% use tax on your purchase. Many businesses miss this on equipment, supplies and software bought from out-of-state vendors, so review those purchases when you file.

Who Needs to Register

Businesses that make taxable sales in Kentucky register with the Department of Revenue before they begin collecting tax. Many people search for a "kentucky sales tax permit" when they really need a registered sales and use tax account with Revenue. In Kentucky, that account is the registration that lets you collect tax and file returns.

Keep this separate from your entity filing. Forming an LLC or corporation with the Secretary of State creates the business entity. It does not create your Revenue tax account. The tax registration is a separate step, and it is not a license. Kentucky has no statewide general business license, so the sales tax registration does not authorize you to operate in your industry. Industry licenses, city licenses and county licenses are separate requirements that depend on what you do and where you do it.

Registration matters even for a small seller. Once you are registered, you have a filing obligation whether or not you had sales during a given period, so plan to file returns on schedule from the start.

How to Register on MyTaxes

Revenue handles tax registration through MyTaxes, its online system at mytaxes.ky.gov. The steps are straightforward:

1. Create a MyTaxes account, or sign in if you already have one.
2. Start a new sales and use tax registration and enter your business information, including your legal name, address and ownership details, as the system asks.
3. Review the information for accuracy before you submit it. Errors in legal name or address cause problems later when you file returns and receive notices.
4. Save the confirmation and your account information. Record who has access to the account so filings do not get missed when staff change.
5. Begin collecting tax on taxable sales only after your registration is in place.

If you prefer paper, Revenue's registration instructions reference Form 10A100, which is the paper registration form. Start from Revenue's business registration page at revenue.ky.gov/Business/Pages/Register-Business.aspx. Revenue's registration page does not list a registration fee. If you are unsure whether any fee applies, call Revenue at (502) 564-3306 before you pay anything.

What Is Taxable and What Is Exempt

The most common mistake in Kentucky sales tax is assuming that grocery rules apply to everything sold in a grocery store. Groceries are exempt, but several categories sold alongside them are taxable under KRS 139.485. The table below covers the main points.

Item or category	Treatment in Kentucky
Groceries	Exempt
Prepared food	Taxable
Candy	Taxable
Soft drinks	Taxable
Alcohol	Taxable
Tobacco	Taxable
Dietary supplements	Taxable
Services listed in KRS 139.200(2)	Taxable (about 50 services)

If you run a store that sells both groceries and taxable items, set up your point-of-sale system to tag each category separately so the correct treatment applies at the register. Reconstructing taxable and exempt sales after the fact is far harder than tracking them as they happen.

Taxable sales of tangible personal property and digital property follow the same 6% rate. Digital products such as downloadable software, music and e-books are within the tax base, so online sellers should check whether their product mix triggers collection. Confirm the treatment of any unusual product or service with Revenue before you finalize your pricing and invoices.

Filing Returns and Deadlines

Kentucky sales and use tax returns are due monthly, by the 20th of the month following the period you report. For example, taxable sales made in September are reported and paid by October 20. The statutory basis is KRS 139.540 and 139.550.

Revenue has also required online filing and payment for sales and excise returns under a mandate it posted on May 2, 2025. Plan to file and pay every return through MyTaxes, and do not wait until the last day. Save each confirmation, because it is your proof of timely filing.

Ask Revenue whether low-volume filers may file less often than monthly. Do not assume you qualify for a less frequent schedule. Until Revenue confirms a different schedule for your account, treat the 20th of each month as your filing date.

Remote Sellers and the $100,000 Threshold

Sellers located outside Kentucky can owe Kentucky sales tax even without an office or warehouse in the state. The trigger is economic: $100,000 in Kentucky gross receipts. Once you cross that line, you must register and collect Kentucky tax on taxable sales to Kentucky customers.

Earlier rules also included a 200-transaction test. HB 757 (2026 Acts ch. 161) removed the 200-transaction test effective August 1, 2026. Because that date has passed, the $100,000 gross receipts threshold is the test that applies today. Registration is due within 60 days of crossing the threshold.

Revenue's remote-retailer page still shows the older 200-transaction text. Do not rely on that page alone. Confirm the current rule with Revenue at (502) 564-3306 before you decide that you are below the threshold or that your registration deadline has not started.

To manage this, track your Kentucky gross receipts on a monthly basis. Build a running total from the start of each year so you can see how close you are to $100,000. A seller that crosses the threshold late in the year still has a 60-day window to register, but a seller that does not track the total can miss that window without realizing it.

Local Taxes That Look Like Sales Tax

Local taxes are a frequent source of confusion, because some look like sales tax to a customer or a bookkeeper. Kentucky has no local sales and use taxes, but several local taxes are separate and may still apply to your business:

• Restaurant tax: Some small cities may add up to 3% on restaurant sales under KRS 91A.400. This is a local levy, not part of the state sales tax, and it applies only where the city has adopted it. Confirm the rule with the city before you add any charge to a customer's bill.
• Transient room tax: Local transient room taxes apply to lodging in certain places. Confirm the rate, the collection process and the filing requirements with the local government where the room is located.
• Occupational license taxes: Cities, counties and school districts levy occupational license taxes on payroll, net profits or gross receipts. These are not sales taxes, but they are the local tax most businesses encounter first. Check the occupational license tax district for the city and county where you operate, because each one runs its own forms and revenue office.

Separately, LLCs and corporations owe the Limited Liability Entity Tax, which has a $175 minimum. It is an entity-level tax, not a sales tax, and it is covered in your annual entity planning rather than your sales tax returns.

Practical Checklist

• Register your sales and use tax account on MyTaxes before you collect any tax.
• Confirm whether each product and service you sell falls within the 6% base, and separate exempt grocery items from taxable items at the point of sale.
• Calendar the 20th of every month and file and pay each return online.
• Track Kentucky gross receipts from the start of the year if you sell from out of state, and watch the $100,000 threshold.
• Review out-of-state purchases for use tax at 6%.
• Check local restaurant, transient room and occupational license tax obligations for each city and county where you operate.
• Keep your MyTaxes login, filing confirmations and sales records together so you can answer a notice quickly.

Questions to Confirm with the Department of Revenue

Some points in this guide depend on rules that Revenue administers or may update. Confirm these items directly before you rely on them:

• Whether any fee applies to registration. Revenue's registration page lists none, but confirm at (502) 564-3306 if you are unsure.
• Whether low-volume filers may file less often than monthly.
• The current remote seller rule following HB 757, since Revenue's remote-retailer page still reflects the older 200-transaction text.
• The treatment of any service that you think may or may not appear within KRS 139.200(2).

Where to Get Help

• Kentucky Department of Revenue: revenue.ky.gov, phone (502) 564-3306
• Kentucky Small Business Development Center: kentuckysbdc.com, free advising for small businesses
• SBA Kentucky district office resources: sba.gov/district/kentucky

For multistate sellers, businesses that combine grocery and prepared food sales, or any business that is unsure how the remote seller threshold applies to its sales, consult a qualified CPA. Use an attorney for questions about contracts, entity structure or disputes with the Department of Revenue.

Disclaimer: This guide is informational content about Kentucky sales tax. It is not legal or tax advice. Tax rules change, and individual circumstances differ. Confirm current requirements with the Kentucky Department of Revenue and consult a qualified CPA or attorney before you make decisions based on this guide.