Kentucky Sales Tax Guide & Nexus Calculator (2026)

Kentucky significantly expanded its digital goods and SaaS taxability in 2022, making it one of the more recent additions to the list of states that tax digital services. If you sell SaaS or digital subscriptions and have Kentucky customers, the 2022 expansion likely changed your compliance profile here.

Quick Reference

Criterion	Detail
State Rate	6%
Economic Nexus Threshold	$100,000 gross sales (rolling 12 months)
Transaction Threshold	None
Digital Goods / SaaS	Taxable (expanded January 1, 2023)
Typical Filing Frequency	Monthly
SST Member	Yes
Registration Portal	revenue.ky.gov

Economic Nexus

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Gross Revenue (USD)

$

Total Transactions (not required)

Enter your trailing 12-month revenue to calculate nexus status.

For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026

Kentucky’s economic nexus threshold is $100,000 in gross sales into Kentucky in the current or prior calendar year. Once exceeded, registration and collection are required.

Kentucky eliminated its 200-transaction alternative threshold before 2025. Marketplace-facilitated sales count toward the threshold.

Tax Rate and Product Taxability

Kentucky’s state rate is 6%. Kentucky does not allow local sales taxes — the 6% rate is the only rate statewide. No county or city variations.

This statewide uniformity means simple, single-rate collection for all Kentucky orders.

Product Categories

Taxable: Tangible personal property, digital goods and services (including SaaS — see below), most retail goods.

Exempt: Prescription drugs, most groceries (food for home preparation is exempt), qualifying agricultural inputs, certain medical equipment.

Digital Goods and SaaS — 2022 Expansion

Kentucky made a major change to its digital goods taxability framework effective January 1, 2023, enacted through House Bill 8 in 2022. Kentucky now broadly taxes digital goods and services that were previously not taxable.

Post-2023 taxable digital products in Kentucky include:

• SaaS (software-as-a-service) — now taxable
• Downloaded software — taxable (previously taxable in some forms)
• Digital audio/visual content (streaming services, music downloads, ebooks, movies) — now taxable
• Video gaming subscriptions and downloads — now taxable
• Digital subscriptions generally — now taxable

Kentucky’s 2022 expansion was one of the most significant digital goods taxability changes among US states in recent years. Prior to January 1, 2023, SaaS was generally not taxable in Kentucky.

If you are a SaaS seller who evaluated Kentucky before 2023 and concluded you had no obligation, you need to reassess. Kentucky is now a clear taxable state for digital services.

The Kentucky Department of Revenue also expanded services taxability more broadly — certain personal services and other categories became taxable. If you sell services beyond digital products, review the full scope of the 2022 expansion for your industry.

Registration

Kentucky is an SST member state. Register through the SSTRS at streamlinedsalestax.org for multi-state coverage including Kentucky.

For Kentucky-only registration:

1. Go to the Kentucky Revenue Cabinet portal: revenue.ky.gov
2. Access Kentucky Business One Stop (business.ky.gov)
3. Register for a Sales and Use Tax Account
4. Provide EIN and business information
5. You will receive a Kentucky Sales and Use Tax account number

Registration is free.

Foreign Sellers

Kentucky accepts foreign business registrations. A US EIN is required. A Kentucky registered agent is not required for remote sellers.

Filing Frequency and Deadlines

Annual Tax Liability	Filing Frequency
Less than $1,200	Annual
$1,200–$12,000	Quarterly
More than $12,000	Monthly

Monthly due dates: Returns due by the 20th of the following month (e.g., January return due February 20).

Returns are filed through the Kentucky Revenue Cabinet portal.

Compliance Notes

2022 expansion — critical for digital sellers: If you sell SaaS, streaming subscriptions, digital content, or any digital services, and you have not reviewed your Kentucky obligations post-January 2023, do so now. The expansion is broad and the change was significant.

Back taxes risk: The Kentucky DOR may assert liability from January 1, 2023 if you were selling covered digital services without collecting. Consider a proactive registration and voluntary disclosure if you have been non-compliant since the expansion.

No local rates: Kentucky’s single statewide rate simplifies compliance. One rate (6%) applies to all Kentucky orders.

SST member: Kentucky’s SST participation means the SSTRS handles registration alongside other SST states.

Amazon FBA: Amazon operates in Kentucky. FBA inventory creates physical nexus from dollar one.

Related Guides

• US Sales Tax Overview
• State Sales Tax Index — All 50 States
• Stripe Tax for Digital Goods and SaaS
• Foreign Sellers Guide to US Sales Tax
• US Sales Tax Compliance Checklist