Kentucky Sales Tax Guide for eCommerce Businesses
Kentucky Sales Tax Guide for eCommerce Businesses
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Kentucky's Sales Tax Authority
State Phone Information
502-564-5170
Member of the Streamlined Sales Tax Governing Board?
Tax percent range for remote sellers in Kentucky
6%
The information on this page is for reference only and should not be used as legal or tax advice. If you are concerned about your sales tax obligations it is advised to hire a professional.
This Page was last updated: December 2021
Do you need to collect sales tax in Kentucky?
If you have nexus in Kentucky you will need to first register, then collect and remit sales tax. There are two main ways that sellers can have nexus: physical or economic.
Physical nexus - A seller physical/ tangible presence in the state.
Economic nexus - A remote seller (no physical presence) passes the threshold tor total revenue or number of transactions.
Does Kentucky charge sales tax on shipping?
Yes
Do you have physical nexus in Kentucky?
A seller has physical nexus in Kentucky if they have any of the following:
Owned or leased property that is utilized or located in the state.
An employee or independent contractor present in the state
Goods in a warehouse
Services completed in the state
Computer software used by a third party in the state
Participating in trade or craft shows and festivals in the state for 15 days or more per year
Do you have economic nexus in Kentucky?
Kentucky's Economic Nexus Sales Threshold
$100,000
Economic Transactions Threshold
Or 200 transactions
Economic Nexus Evaluation Period
Either Current or Previous Calendar Year
Economics Nexus Effective Date
October 1, 2018
What types of sales are included in Kentucky's Economic Nexus Sales Threshold?
Gross Sales
All sales including Marketplace Facilitator sales are included in the Economic Nexus Sales Threshold
How does Kentucky treat exempt transactions when calculating economic nexus?
Exempt sales are included; exempt services are not included in the threshold
Does Kentucky have a Marketplace Facilitator Law?
Yes, Marketplace Facilitators are required to collect and remit sales tax on behalf of sellers on their platform.
Filling Sales Tax
When are Returns Due?
Kentucky sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day
How often are Sales Tax Returns filed?
Monthly, Quarterly or Yearly
This period is determined by the state typically by assessing your volume of sales in the state.
Options for filing sales tax returns:
Online - Use the Kentucky Department of Revenue website to file online
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