Which marketplaces collect Kentucky sales tax?

Amazon, Etsy, eBay, Walmart Marketplace, and most similar marketplaces collect Kentucky sales tax on transactions they facilitate. Your direct-to-consumer sales (Shopify, website, wholesale) are your responsibility.

Is Etsy a marketplace facilitator in Kentucky?

Yes — Etsy meets the marketplace facilitator definition in Kentucky and collects Kentucky sales tax on facilitated orders. Etsy sellers don't collect tax on those Etsy transactions, but direct (off-Etsy) sales remain the seller's responsibility.

Is eBay a marketplace facilitator in Kentucky?

Yes — eBay is a marketplace facilitator in Kentucky and collects, files, and remits Kentucky sales tax on its facilitated transactions. The seller still tracks listings for income tax and resale-certificate purposes.

Is DoorDash a marketplace facilitator in Kentucky?

Yes — DoorDash collects Kentucky sales tax on delivery orders it facilitates and remits to the Kentucky DOR. Restaurants and merchants typically receive remittance reports rather than collecting on those orders themselves.

Is Uber Eats a marketplace facilitator in Kentucky?

Yes — Uber Eats acts as a marketplace facilitator in Kentucky for the orders it processes, collecting and remitting the applicable Kentucky sales tax on the food and delivery charges it bills.

Do marketplace sales count toward my Kentucky nexus threshold?

In most states, marketplace-facilitated sales are EXCLUDED from the economic nexus threshold calculation. But Kentucky may differ — verify before assuming.

Does Shopify qualify as a marketplace facilitator?

Standard Shopify (your own standalone store) does NOT qualify — you're the seller of record. Shopify Markets Pro, however, does qualify as a marketplace facilitator in many states.

Kentucky Marketplace Facilitator Sales Tax Rules — 2026

Updated 2026-05-24

Use this Kentucky marketplace facilitator sales tax guide to check 2026 rules, collection requirements, effective-date notes, threshold counting, and how Amazon, Etsy, eBay, DoorDash, and Uber Eats orders differ from direct-store sales. Direct channels still use the $100,000 or 200 transactions threshold.

Kentucky's marketplace facilitator law

Kentucky has a marketplace facilitator law: marketplaces (Amazon, Etsy, eBay, Walmart Marketplace) calculate, collect, and remit sales tax on your behalf for transactions they facilitate to Kentucky buyers.

This significantly reduces your compliance burden if you sell primarily through marketplaces. But it does not exempt you from registering if you also have direct channels (your own store, wholesale, trade shows, etc.).

Key distinctions

Facilitated sales (collected by the marketplace): you generally don't collect or remit.
Direct sales (your own checkout): your responsibility as before.
Informational filings may still be required depending on Kentucky's rules, even on marketplace-facilitated volume.
Most states exclude marketplace-facilitated sales from your economic nexus threshold calculation, but double-check Kentucky specifically before assuming.

Marketplace-specific gotchas in Kentucky

Not every platform you sell on is legally a marketplace facilitator. Shopify's store platform is not — you are the seller of record. Shopify's Markets Pro is. Verify per platform.
Wholesale sales through a marketplace are usually NOT marketplace-facilitated — the marketplace is a payment conduit, not the seller. Direct-collect obligations still apply.
Returning customers and refunds: if the marketplace remitted tax and you process a refund outside the marketplace, the refund usually needs to flow through the marketplace to trigger the tax reversal. Off-marketplace refunds create reconciliation headaches.

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.

Frequently asked questions

Which marketplaces collect Kentucky sales tax?: Amazon, Etsy, eBay, Walmart Marketplace, and most similar marketplaces collect Kentucky sales tax on transactions they facilitate. Your direct-to-consumer sales (Shopify, website, wholesale) are your responsibility.
Is Etsy a marketplace facilitator in Kentucky?: Yes — Etsy meets the marketplace facilitator definition in Kentucky and collects Kentucky sales tax on facilitated orders. Etsy sellers don't collect tax on those Etsy transactions, but direct (off-Etsy) sales remain the seller's responsibility.
Is eBay a marketplace facilitator in Kentucky?: Yes — eBay is a marketplace facilitator in Kentucky and collects, files, and remits Kentucky sales tax on its facilitated transactions. The seller still tracks listings for income tax and resale-certificate purposes.
Is DoorDash a marketplace facilitator in Kentucky?: Yes — DoorDash collects Kentucky sales tax on delivery orders it facilitates and remits to the Kentucky DOR. Restaurants and merchants typically receive remittance reports rather than collecting on those orders themselves.
Is Uber Eats a marketplace facilitator in Kentucky?: Yes — Uber Eats acts as a marketplace facilitator in Kentucky for the orders it processes, collecting and remitting the applicable Kentucky sales tax on the food and delivery charges it bills.
Do marketplace sales count toward my Kentucky nexus threshold?: In most states, marketplace-facilitated sales are EXCLUDED from the economic nexus threshold calculation. But Kentucky may differ — verify before assuming.
Does Shopify qualify as a marketplace facilitator?: Standard Shopify (your own standalone store) does NOT qualify — you're the seller of record. Shopify Markets Pro, however, does qualify as a marketplace facilitator in many states.

Sources

date_retrieved: 2026-05-24