Kentucky is a destination-based state (sales are taxed where the buyer is located).
Businesses may file online using KY eFile.
Kentucky’s sales tax rate is 6%. There are no additional sales taxes imposed by any city or county.
Food and food items are tax exempt in Kentucky with the exception of candy, soft drinks, and prepared foods.
Activities that establish a tax presence in the state include:
Additional responsibility to sellers: Out-of-state sellers without nexus in this state, and who expect more than $100,000 in gross annual sales to Kentucky residents, must notify their Kentucky customers that use tax must be reported and paid directly to the Department of Revenue.
The timely filing discount amounts to 1.75% of the first $1,000 and 1.5% of the tax due in excess of $1,000 on each return up to a maximum of $50.
Based on the tax liability estimates you make when you register for a tax permit, you’ll be set up on a monthly, quarterly, or annual filing schedule.
Returns are due on the 20th of the month following the end of the reporting period.
A new business must register with the Department of Revenue for a valid Sales and Use tax permit and then register for online filing at the Kentucky One Stop.
Penalties are charged as follows: