- Kentucky imposes a 6% statewide sales and use tax with no general local sales tax; taxability still depends on the specific item, service, and transaction.
- Tax applies to retail sales of tangible personal property, digital property, and certain listed services, including many SaaS/prewritten software offerings, telecommunications, landscaping, janitorial, parking, moving services, and prepared food/candy/soft drinks/dietary supplements.
- Remote sellers have Kentucky economic nexus if they have at least $100,000 in Kentucky gross receipts or 200+ Kentucky sales in the current or previous calendar year; collection begins prospectively once met.
- Exemptions include food for home consumption, prescription drugs and certain medical devices, qualifying agricultural and manufacturing inputs, certain textbooks/educational materials, qualifying data-center property, and sales for resale or to approved exempt organizations, subject to documentation and use requirements.
- Certain investment-grade bullion is exempt retroactively to March 27, 2025, but jewelry and collectible items are generally not covered.
Source: sovos.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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