How to compute ky-sales-tax for Kentucky, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
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General reference only
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State sales tax rate
6.00% (flat, uniform statewide)KRS 139.200
Maximum combined rate (state + local)
6.00%KRS 139.200
Local sales taxes
NoneKRS 139.200
Sourcing method
Destination-based (SST)KRS 139.450; Streamlined Sales and Use Tax Agreement
Economic nexus threshold — sales revenue
$100,000KRS 139.340
Economic nexus threshold — transaction count
200 transactionsKRS 139.340
Streamlined Sales Tax membership status
Full MemberStreamlined Sales and Use Tax Agreement
Expanded services taxation effective date
Many services now taxable effective January 1, 2023HB 8 (2022 Ky. Acts ch. 212); KRS 139.200
General tangible personal property (TPP)
TAXABLE at 6%KRS 139.200
Clothing — exemption status
TAXABLE — no exemptionKRS 139.200
Grocery food
EXEMPTKRS 139.485
Prepared food
TAXABLEKRS 139.485; KRS 139.200
SaaS (Software as a Service)
TAXABLE (as of 2023 expansion)HB 8 (2022 Ky. Acts ch. 212); KRS 139.200
Canned (prewritten) software
TAXABLEKRS 139.200
Digital goods
TAXABLEKRS 139.200
Expanded services (landscaping, janitorial, security, fitness, cosmetic surgery, pet care, and more)
TAXABLE effective January 1, 2023HB 8 (2022 Ky. Acts ch. 212); KRS 139.200
Professional services (legal, accounting, medical)
NOT TAXABLEKRS 139.200; HB 8 (2022 Ky. Acts ch. 212)
Manufacturing equipment
EXEMPTKRS 139.470
Prescription drugs
EXEMPTKRS 139.472
Resale purchases
EXEMPTKRS 139.270
Rendered from the facts database. 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 |
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Other Kentucky computations in the OpenAccountants Tax Library.
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