Which Services Are Taxable in Kentucky: Lawn Care, Cleaning, Pet Care, Photography, Web Design and 40 More at 6%

If you sell services in Kentucky, the state sales tax can reach your invoices even when you never sell a physical product. Kentucky taxes a long list of services at its flat 6% rate, and that list has changed in recent years. Most owners learn which services are taxable only after a client asks for a tax line or a letter from the Department of Revenue arrives. This guide covers which services are taxed, which common services fall outside the list, and what to do before your next invoice goes out.

Disclaimer: This article is general information, not legal or tax advice. How a service is taxed depends on the exact facts of each job. Talk with a qualified CPA or attorney before you set your tax practices, especially if you sell both taxable and nontaxable services.

How Kentucky's Sales Tax Applies to Services

Kentucky's sales tax rate is a flat 6%. Kentucky has no local sales taxes, so a customer in Louisville pays the same rate as a customer in Hopkinsville or Murray. Cities, counties and school districts can still levy local occupational license taxes, but those are a separate tax covered later in this guide.

The services that are taxed are listed in KRS 139.200, subsections (2)(g) to (ay). That part of the statute sets out 45 service categories, and the current text took effect August 1, 2026. The 2022 expansion, HB 8, took effect January 1, 2023, and brought a number of services into the tax base. Data brokering was added effective August 1, 2026 under HB 757 (2026 Acts ch. 161).

Because the statute groups services into categories, one category often covers several related jobs. The table below summarizes the categories that small businesses most often run into. It is a summary, not the statute itself, so check the full text of KRS 139.200 before you finalize a tax position.

Services Kentucky Taxes at 6%

Service category	What the statute covers
Landscaping and lawn care	Tree trimming, landscape design and installation, snow removal
Cleaning	Janitorial services and residential or commercial cleaning
Pet services	Small animal veterinary, pet grooming, boarding, sitting, obedience training
Photography	Photography services
Web services	Website design and website hosting
Software	Prewritten software access services (SaaS)
Personal services	Massage (unless medically necessary), personal fitness training, tattoo and body modification
Design	Interior decorating and design
Moving	Household moving
Events	Rental of space for weddings and parties, social event planning
Security and investigation	Private investigation, security monitoring
Parking	Parking
Data	Data brokering (added effective August 1, 2026)

Two items need a closer look. First, massage is taxable unless it is medically necessary. The line between a medical massage and a relaxation massage is a fact question, so confirm borderline cases with the Department of Revenue before you quote a client. Second, prewritten software access services, commonly called SaaS, are on the list. If you sell a subscription that gives customers access to prewritten software, get a tax review before you launch it in Kentucky.

Multi-service invoices deserve planning too. Consider a lawn care company that bills a commercial client for monthly mowing and a one-time tree trimming job. Both fall under the landscaping and lawn care category, so both are taxable at 6%. Showing each service on its own line makes it easier to show later what was taxed and at what amount.

Services That Are Not on the List

The statute does not list towing, junk removal, courier delivery or general handyman labor. Those services are not taxed under the list as written. Do not assume that settles every job, though. The way a specific job is structured can change the answer, and the Department of Revenue is the agency that can confirm treatment for your situation.

Keep in mind that a service being outside the sales tax list does not remove it from other rules. Licensing and local occupational license taxes apply to many of these trades, as explained below.

Resale Certificates for Services Bought for Resale

A service bought for resale is not taxed when the buyer gives a resale certificate, under KRS 139.260 and 139.270. For example, a web design firm that buys hosting from a provider to resell to its client can give the provider a resale certificate for that purchase instead of paying tax on it. The same logic applies to other taxable services you buy in order to pass them along to your own customers.

Keep signed certificates on file for every resale purchase. Without a valid certificate on record, assume the purchase is taxable, and be ready to pay the tax yourself if the Department of Revenue asks for documentation.

Steps to Take Before Your First Taxable Invoice

1. List every service you sell. Match each one to a category in the statute. Write the category next to the service so you can show the reasoning later.
2. Register your tax account. Businesses register their tax accounts with the Department of Revenue using Form 10A100 through MyTaxes.ky.gov. The registration page is at revenue.ky.gov/Business/Pages/Register-Business.aspx.
3. Decide how tax appears on each invoice. Separate taxable and nontaxable lines so your records match your returns.
4. Collect and store resale certificates. File them with the purchase records they support.
5. Get uncertain jobs confirmed. If a job does not clearly fit a listed category, ask the Department of Revenue before you quote it. Keep a copy of the answer.
6. Track tax collected. Set up your bookkeeping so tax collected is easy to pull for every filing period.

Other Costs to Plan For

Sales tax is only one part of the picture. Kentucky does not issue a statewide general business license, and registering an entity or an assumed name is a filing, not a license. Licensing in Kentucky is handled by agency or trade:

• Department of Housing, Buildings and Construction: electricians, plumbers and HVAC
• Boards of Cosmetology and Barbering: cosmetology and barbering
• Cabinet for Health and Family Services: child care and home health
• Alcoholic Beverage Control (ABC): alcohol and tobacco
• Local health departments: food permits
• Real Estate Authority: real estate activity

Kentucky has no statewide general contractor license. If you do general contracting or handyman work, check the city and county where you work for any local contractor requirement.

Local occupational license taxes are a separate cost. Cities, counties and school districts levy them on payroll, net profits or gross receipts. Kentucky has 120 counties and about 420 cities, and each local jurisdiction runs its own forms and revenue office. Check the occupational license tax district for every city and county where you operate.

If you operate as an LLC or corporation, Kentucky has no franchise tax, but the Limited Liability Entity Tax (LLET) applies with a $175 minimum. The annual report costs $15 and is due June 30 every year. Domestic entities that miss June 30 are administratively dissolved, so mark the date on your calendar from the first year.

Official Kentucky Resources

• Kentucky Department of Revenue: revenue.ky.gov
• Kentucky Secretary of State, Division of Business Filings: sos.ky.gov business filings
• Kentucky One Stop Business Portal for new formations: onestop.ky.gov
• Kentucky Small Business Development Center (KSBDC): kentuckysbdc.com
• SBA resources for Kentucky: sba.gov/district/kentucky

Frequently Asked Questions

Is lawn care taxable in Kentucky?

Yes. Landscaping and lawn care is on the statute list. That category includes tree trimming, landscape design and installation, and snow removal.

Is general handyman labor taxed?

General handyman labor is not on the list. If a job includes work that falls under a listed category, check with the Department of Revenue for that specific job.

Do I charge sales tax on websites I build?

Website design and website hosting are on the list, so they are taxable services. If you buy hosting to resell to a client, a resale certificate may cover that purchase. Confirm the details with the Department of Revenue for your own arrangement.

This article is informational content, not legal or tax advice. Confirm your tax treatment with the Kentucky Department of Revenue, and work with a qualified CPA or attorney for any complex situation.