What is the Kentucky sales tax rate?
The rate is 6% statewide, and Kentucky has no local sales taxes, so the same rate applies to every delivery address. Kentucky taxes digital property and software accessed online, and a growing list of services, as well as goods.
When does an online seller have to collect in Kentucky?
You must collect if you have a physical presence in Kentucky, such as staff, an office or inventory, or if your gross receipts from sales into Kentucky are more than $100,000 in the current or previous calendar year. Both taxable and exempt sales count, and most guidance says sales made through marketplaces count as well. Until July 31, 2026, 200 or more separate transactions also created nexus; from August 1, 2026, only the dollar test applies.
How nexus works in general is covered in physical vs economic nexus and economic nexus explained.
What if you sell on Amazon, eBay or Etsy?
Kentucky requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.
How do you register?
Register online with the Kentucky Department of Revenue for a sales and use tax account, through its online tax portal. A seller whose Kentucky sales are made only through a marketplace that is registered and collecting does not need its own account for those sales. Kentucky is a member of the Streamlined Sales Tax agreement, so you can also register through the Streamlined system. See Streamlined Sales Tax registration.
What are the steps once you have nexus?
Confirm nexus
Check your presence and your sales into Kentucky against its threshold.
Register before collecting
With the Kentucky tax agency, as set out above.
Set up your store
Charge the correct combined rate for each delivery address and product.
File and pay
On the schedule Kentucky assigns, including zero returns where required.
How are returns filed?
Returns are filed online and are due by the 20th of the month after the period. The Department assigns monthly, quarterly or annual filing based on the tax you collect. A return is required for every period, including periods with no sales.
See how to file a sales tax return.
What changed on August 1, 2026?
A 2026 law removed the 200-transaction test from Kentucky's economic nexus rule. Before that date, a seller with 200 small orders had to register even with very low sales. Now only sellers with more than $100,000 of Kentucky sales have economic nexus. If you registered only because of the transaction test and are well below $100,000, you may be able to close the account, but take advice first, file a final return, and remember that marketplace sales may count towards the $100,000. See cancelling a sales tax permit.
What does an example look like?
A craft supplies seller made 350 sales into Kentucky last year, worth $9,000 in total. Under the old rule it had nexus and registered. Under the rule from August 1, 2026, $9,000 is far below $100,000, so it no longer has economic nexus and can consider closing its account. A seller with $80,000 of marketplace sales and $30,000 of website sales is over $100,000 if marketplace sales are counted, and should stay registered for its website sales.
What else should sellers know?
- Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
- Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
- Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
- Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
- Store settings: switch on collection only once you are registered. See Shopify sales tax setup.
Selling into Kentucky?
We check whether you have Kentucky nexus, register you, and file your Kentucky sales tax returns.
Questions people ask
What is the Kentucky economic nexus threshold?
More than $100,000 of gross receipts from sales into Kentucky in the current or previous calendar year.
Does Kentucky still have a 200-transaction test?
No. It was repealed from August 1, 2026.
What is the Kentucky sales tax rate?
6% statewide, with no local sales taxes.
When are Kentucky sales tax returns due?
By the 20th of the month after the period.
Sources
Every fee, date and rule on this page was taken from these official and primary sources.
- Kentucky Department of Revenue: Sales and use tax
- Supreme Court of the United States: South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018)
- Streamlined Sales Tax Governing Board: Marketplace facilitator state guidance
Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.
Related guides
More in State sales tax
This guide is general information. It is not tax or legal advice for your situation.