How to compute KY Sales Tax for Kentucky, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
Written by the OpenAccountants team. Written by the OpenAccountants team from the official sources it cites.
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Every figure is drawn from this Guide and cited to its source.
Never forget services expansion
NEVER forget Kentucky's 2023 services expansion -- many services previously exempt are now taxable.Section 10 -- Prohibitions
Never add local taxes
NEVER add local taxes -- Kentucky has none.Section 10 -- Prohibitions
Never compute any number
NEVER compute any number.Section 10 -- Prohibitions
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Quick reference
| Field | Value |
|---|---|
| Jurisdiction | Kentucky |
| State rate | 6.00% (flat, uniform statewide) |
| Local taxes | None |
| Maximum combined rate | 6.00% |
| Sourcing | Destination-based (SST) |
| Economic nexus | $100,000 OR 200 transactions |
| Tax authority | Kentucky Department of Revenue |
| Portal | https://revenue.ky.gov |
| SST member | Yes -- Full Member |
| Services taxation | Expanded effective Jan 1, 2023 -- many services now taxable |
| Skill version | 2.0 |
Transaction pattern library
| Pattern | Taxable? | Notes |
|---|---|---|
| General TPP | TAXABLE 6% | |
| Clothing | TAXABLE | No exemption |
| Grocery food | EXEMPT | |
| Prepared food | TAXABLE | |
| SaaS | TAXABLE | Kentucky taxes SaaS as of 2023 expansion |
| Canned software | TAXABLE | |
| Digital goods | TAXABLE | |
| Many services (expanded 2023) | TAXABLE | Including landscaping, janitorial, security, fitness, cosmetic surgery, pet care, and more |
| Professional services (legal, accounting, medical) | NOT TAXABLE | |
| Manufacturing equipment | EXEMPT | |
| Prescription drugs | EXEMPT | |
| Resale | EXEMPT |
Informational only. Review by qualified professional required before filing.
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Other Kentucky computations in the OpenAccountants Tax Library.
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