What is Kentucky's e-commerce sales tax in 2026?

Kentucky's 2026 e-commerce sales tax: out-of-state sellers collect once they cross $100,000 in gross sales OR 200 transactions in Kentucky-destination revenue. As a remote seller, charge the 6.00% state rate plus any applicable local rate at the buyer's ship-to address.

Do I collect sales tax on every Kentucky order?

You collect Kentucky sales tax once you cross the economic nexus threshold ($100,000 in gross sales OR 200 transactions). Below threshold, you don't need to collect unless you have physical nexus (office, employees, inventory in Kentucky).

What rate do I charge for Kentucky e-commerce sales?

For sales shipped into Kentucky from out of state, charge the 6.00% state rate plus any applicable local rate at the buyer's ship-to address. Most e-commerce platforms (Shopify, WooCommerce) can apply destination rates automatically when you enable KY in tax settings. Sales that both begin and end inside Kentucky can follow a different sourcing rule in a minority of states — check with the Kentucky Department of Revenue if you are an in-state seller.

Do I need to collect sales tax on shipping in Kentucky?

It depends on state-specific rules. Many states tax shipping when the product is taxable; some states exempt shipping if separately stated. Check Kentucky's specific policy or use a tax service that encodes the rule.

Kentucky E-commerce Sales Tax Nexus Guide — 2026

Updated 2026-07-20

Reviewed by Nexus by State research team using official state tax sources. Last reviewed 2026-07-20.

Guide content last reviewed: 2026-07-20

If your E-commerce business sells $100,000 or 200 transactions into Kentucky in a calendar year, you have economic nexus and must register, collect, and remit Kentucky sales tax.

E-commerce sales tax basics in Kentucky

For a direct-to-consumer store (Shopify, WooCommerce, BigCommerce, or custom) shipping to Kentucky buyers, the economic nexus trigger is $100,000 or 200 transactions in KY-destination revenue (effective 2018-10-01). Crossing that bar obligates registration, collection, and periodic filing.

Once registered, charge 6.00% state tax on most tangible personal property. Digital products, subscriptions, and professional services have different treatment — see the Kentucky SaaS page if you sell software or digital goods.

Registration + collection checklist

Register with the Kentucky Department of Revenue for a sales tax permit.
Configure your cart platform to collect tax at the destination rate. Enable KY in your tax settings.
As a remote seller, charge the combined state + local rate at the customer's delivery address — interstate sales are sourced to the destination, not to where you ship from.
File returns on the cadence your DOR assigns (monthly, quarterly, or annually).
Track your Kentucky-sourced revenue monthly so you know when you're approaching or below threshold for the next period.

Common mistakes e-commerce sellers make in Kentucky

Using origin-based rates (your HQ state's rate) instead of destination rates. A sale shipped from outside Kentucky into Kentucky is sourced to the buyer's delivery address, so charge the KY rate, not your home state's. Intrastate sales are a separate question: a minority of US states apply origin sourcing to sales that both begin and end in-state, so if your business is located in Kentucky, confirm the intrastate rule with the Kentucky Department of Revenue before configuring your cart.
Guessing at how marketplace sales count toward the Kentucky threshold. States split on this — some let a seller exclude sales a registered marketplace facilitator already collected on, others require those sales to be included in the threshold test even though the marketplace remits the tax. Read Kentucky’s own rule on the Kentucky marketplace facilitator page before adding or removing them from your nexus-tracking spreadsheet.
Waiting until year-end to register. Registration and collection deadlines run from the threshold-crossing date, and the length of that grace period is set by each state — some require collection on the very next transaction, others allow until the first day of a later month. Check Kentucky’s deadline with the DOR as soon as you cross $100,000; back-tax exposure accrues for every day you sell unregistered.
Forgetting to file zero returns once registered. Missing filings trigger penalties even when you owe no tax.

Kentucky nexus note

Kentucky sales tax nexus and economic nexus threshold: through July 31, 2026, a remote retailer must register and collect Kentucky sales tax once it has $100,000 or more in gross receipts from sales into Kentucky OR 200 or more separate sales into Kentucky in the previous or current calendar year — meeting either test triggers the requirement (Kentucky Department of Revenue Wayfair guidance, HB 487; collections required beginning October 1, 2018). Effective August 1, 2026, House Bill 757 (2026 Regular Session, enacted over the Governor's veto) removes the 200-transaction test for both remote retailers and marketplace providers, leaving a $100,000 sales-only threshold that counts tangible personal property, digital property, and services delivered, transferred electronically, or provided to a Kentucky purchaser; sellers registered solely because of transaction volume should review whether they can deregister under Kentucky's trailing-nexus rules. Kentucky's marketplace facilitator law (HB 354) has been effective since July 1, 2019 — Amazon, Etsy, eBay, and Walmart collect and remit Kentucky sales tax on facilitated sales, registering once for all third-party sellers per KRS 139.450 (procedure clarified by HB 249, effective July 1, 2021). Kentucky levies a flat 6% statewide sales tax with no local sales taxes, so the rate is identical at every Kentucky delivery address. HB 757 also extends Kentucky sales and use tax to data brokering services beginning August 1, 2026. Direct-to-consumer sales outside any marketplace remain the seller's own collection responsibility once nexus is met.

What to do next

Read the full Kentucky overview for thresholds, filing frequency, marketplace facilitator rules, and registration links. Use the nexus calculator to check whether you have crossed the threshold. For background on the post-Wayfair economic nexus framework, see the pillar guide.

E-commerce sales tax in other states

Compare Kentucky's e-commerce rules with nearby and similar states' e-commerce sales tax guides:

Frequently asked questions

What is Kentucky's e-commerce sales tax in 2026?: Kentucky's 2026 e-commerce sales tax: out-of-state sellers collect once they cross $100,000 in gross sales OR 200 transactions in Kentucky-destination revenue. As a remote seller, charge the 6.00% state rate plus any applicable local rate at the buyer's ship-to address.
Do I collect sales tax on every Kentucky order?: You collect Kentucky sales tax once you cross the economic nexus threshold ($100,000 in gross sales OR 200 transactions). Below threshold, you don't need to collect unless you have physical nexus (office, employees, inventory in Kentucky).
What rate do I charge for Kentucky e-commerce sales?: For sales shipped into Kentucky from out of state, charge the 6.00% state rate plus any applicable local rate at the buyer's ship-to address. Most e-commerce platforms (Shopify, WooCommerce) can apply destination rates automatically when you enable KY in tax settings. Sales that both begin and end inside Kentucky can follow a different sourcing rule in a minority of states — check with the Kentucky Department of Revenue if you are an in-state seller.
Do I need to collect sales tax on shipping in Kentucky?: It depends on state-specific rules. Many states tax shipping when the product is taxable; some states exempt shipping if separately stated. Check Kentucky's specific policy or use a tax service that encodes the rule.

Sources

date_retrieved: 2026-05-24