Kentucky sales & use tax.
The facts an advisor checks first — rate, nexus threshold, marketplace rules — with links to the controlling authority.
Kentucky: rate, nexus & administration.
- State rate
- 6%
- Local rates
- No local sales taxes
- Economic nexus
- $100,000 or 200 transactions · effective October 1, 2018The 200-transaction threshold is scheduled for repeal effective August 1, 2026.Controlling authority: KRS 139.340(2)(g) ↗
- Marketplace facilitator
- Yes — effective July 1, 2019
- Streamlined (SST)
- Full member
- Administered by
- Kentucky Department of Revenue ↗
What to watch in Kentucky
- SaaS became taxable January 1, 2023 as part of a broad expansion into services — one of the most aggressive recent base expansions.
- Dozens of enumerated services have been added to the base since 2018 (data brokering services join August 1, 2026); service clients need a current-year check.
Rates, thresholds, and taxability change mid-year — verify against the Kentucky Department of Revenue before advising. In L3i, every determination is cited to the controlling authority.
The Kentucky voluntary disclosure agreement.
Behind in Kentucky? There’s a front door. The voluntary disclosure program lets a business settle unregistered-period exposure on defined terms — before the state finds it first. The terms that shape the client conversation:
Administered by the Kentucky Department of Revenue ↗ · also reachable through the MTC multistate voluntary disclosure program. Program terms as of February 2026 — confirm current terms before filing. L3i pairs the exposure math with the filing itself — see exposure analysis & VDA services.
Kentucky, in brief.
What is the economic nexus threshold in Kentucky?
$100,000 or 200 transactions, effective October 1, 2018. The 200-transaction threshold is scheduled for repeal effective August 1, 2026. Once the threshold is crossed, remote sellers must register with the Kentucky Department of Revenue and begin collecting.
What is the sales tax rate in Kentucky?
The state sales tax rate is 6%. No local sales taxes.
Do marketplace facilitators collect Kentucky sales tax?
Yes — marketplace facilitators have been required to collect since July 1, 2019. Direct (non-marketplace) sales remain the seller’s obligation.
How does a remote seller register for Kentucky sales tax?
Register with the Kentucky Department of Revenue before collecting — a remote seller must register once it crosses the economic nexus threshold ($100,000 or 200 transactions). As a Streamlined Sales Tax member state, Kentucky also accepts central registration through the SST system, which covers all member states in one application.
Does Kentucky offer a voluntary disclosure agreement (VDA)?
Yes — the Kentucky Department of Revenue administers a voluntary disclosure program with a lookback of 48 months (4 years). Penalties are generally waived; interest is generally still due. An advisor can approach the state anonymously before disclosing the client’s identity.
A page tells you the rule. The platform applies it — and remembers why.
L3i runs Kentucky determinations against a deterministic rules engine, cites the controlling authority, and captures your firm’s judgment so the next Kentucky question starts further ahead.
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