Kentucky Reverse Sales Tax Calculator.

Kentucky has a statewide sales tax rate of 6% with no local sales taxes permitted. Similar to Indiana and Connecticut, Kentucky's rate is uniform across all 120 counties and all municipalities — every purchase in Kentucky at a taxable retail location is subject to the same 6% rate.

This simplicity benefits both businesses and consumers. A retailer in Louisville, Lexington, Bowling Green, or Pikeville all charge the same rate. There's no need to look up city or county rates, and compliance is straightforward for multi-location businesses.

Kentucky made significant expansions to its sales tax base in 2018 and 2022, adding many services that were previously exempt. Kentucky now taxes certain personal services (hair cutting, landscaping, dry cleaning, veterinary services for non-farm animals), entertainment admissions, and more. This expansion of the tax base to services is part of a broader tax modernization effort, though it has also generated controversy.

Kentucky exempts food for human consumption (groceries) from the 6% sales tax. Prescription drugs and most medical devices are exempt. Agricultural inputs including seeds, fertilizers, and farm machinery are broadly exempt. Utilities used in manufacturing (electricity, gas, water) are exempt when used directly in the production process.

The Kentucky Department of Revenue administers sales tax. Returns are due monthly for sellers with large liability, quarterly for smaller sellers. Kentucky participates in the SST agreement. Kentucky's economic nexus threshold is $100,000 in annual Kentucky sales, consistent with most other states.