Kentucky Sales Tax Calculator

If your business sells physical products or certain types of services, you will need to collect and pay sales tax. In Kentucky, the first step is visiting the Department of Revenue website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit. 

Use our Sales Tax Calculator to determine your exact sales tax rate and total purchase amount. 

What Products and Services Are Subject to Sales Tax in Kentucky?

Sales of both tangible and digital property are subject to sales tax in Kentucky. Labor for repair and installation of taxable tangible personal property is also subject to sales tax, as are communications services. Sales of any prepared food, including prepared food sold in grocery stores, is subject to sales tax. Other groceries are tax-exempt. 

Kentucky Sales Tax Rate

The state sales tax rate in Kentucky is 6%.

Kentucky sales tax rates vary depending on which county and city you’re in. Check Kentucky Department of Revenue site for the exact rates.

How to Register for Kentucky Sales Tax

In Kentucky, acquire a seller’s permit by following the revenue department’s detailed instructions for registration: 

1. Go to the Kentucky business one stop portal. 
2. Register for an account.
3. Fill out the business tax registration form.
4. There is no fee to register for business taxes.

Conclusion 

In Kentucky, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.