Kentucky Sales Tax Guide (2026)

Kentucky applies a flat 6% state sales and use tax with no local sales taxes, so every taxable sale is 6% regardless of location.

Because the rate is uniform, there is no city-by-city variation to track.

Kentucky economic nexus is triggered when your sales into the state exceed $100,000 in the current or prior calendar year; the 200-transaction test was repealed effective August 1, 2026. You must register within 60 days of crossing the threshold. Physical presence creates nexus immediately.

Kentucky's marketplace-provider collection law is codified at KRS 139.450, most recently amended by 2026 Kentucky Acts ch. 161, § 1, effective August 1, 2026. A marketplace provider that makes its own retail sales or facilitates sales of tangible personal property, digital property, or services into Kentucky must register and collect Kentucky sales and use tax once combined provider and marketplace-retailer sales exceed $100,000, collecting on the full sales price of every facilitated sale even when the underlying retailer would not otherwise have Kentucky nexus. A marketplace retailer is relieved of collection and remittance liability on sales facilitated by a registered, collecting marketplace provider, and a remote retailer selling exclusively through such a provider is not required to separately register for a Kentucky sales and use tax account for those sales.[6]

Kentucky assigns monthly, quarterly, or annual filing based on tax volume. Returns are due the 20th of the month following the reporting period. If the 20th falls on a weekend or state holiday, the deadline moves to the next business day.

Kentucky exempts groceries and prescription drugs. Since 2023, SaaS and prewritten computer software access services are taxable. In January 2026 the Kentucky DOR confirmed that software incorporating artificial intelligence is taxable as prewritten software, whether or not the AI adapts its output to user data.

Kentucky buyers give suppliers Form 51A105 (Resale Certificate) with their active Kentucky sales tax account number to buy inventory for resale tax-free [3]. A blanket certificate stays on file with the supplier for future purchases, while a single-purchase certificate covers only one transaction [3].

Late filing or payment carries a penalty of 2% of the tax due for each 30-day period, up to a 20% maximum, with a $10 minimum, plus interest from the due date.

You must file a written protest within 60 days of the Notice of Tax Due, a deadline that cannot be extended [4]. After the Department's final ruling, you can appeal to the Kentucky Claims Commission and then the courts [4].

• [1] Kentucky DOR — Sales & Use Tax (6% rate, no local, nexus, groceries, digital)

• [2] Kentucky DOR — Sales Tax Facts Winter 2025-2026 (SaaS and software access taxable)

• [3] Kentucky DOR — Form 51A105 (Resale Certificate)

• [4] Kentucky DOR — Protest Procedures (60 days, Claims Commission)

• [5] Kentucky DOR — Register a Business (MyTaxes)

• [6] Kentucky Revised Statutes § 139.450 — Marketplace Providers

Verified July 2026 against Kentucky Department of Revenue published guidance.

• Does Kentucky Have Sales Tax on Clothing? Key Insights for Businesses
• Kentucky Sales Tax Exemptions: What Every Business Needs to Know