What is the Kentucky marketplace facilitator threshold?

Through July 31, 2026, the threshold is the $100,000 gross-receipts test or 200 or more separate Kentucky transactions in the immediately preceding or current calendar year. Beginning August 1, 2026, the 200-transaction test ends and the provider instead registers when its own plus facilitated Kentucky gross receipts exceed $100,000 in the preceding or current calendar year.

What changes for Kentucky marketplace facilitators on August 1, 2026?

The 200-transaction nexus test disappears. Under 2026 HB 757 and the version of KRS 139.450 effective August 1, 2026, a marketplace provider uses a sales-volume-only test and registers when combined direct and facilitated Kentucky gross receipts exceed $100,000 in the preceding or current calendar year. For example, 300 Kentucky orders totaling $40,000 no longer cross the economic-nexus threshold by transaction count alone.

When did Kentucky's marketplace facilitator law take effect?

The original marketplace-provider duties took effect July 1, 2019 under 2019 HB 354 and KRS 139.450. HB 249 changed the registration window and permit mechanics on July 1, 2021. The next threshold change takes effect August 1, 2026, when 2026 HB 757 removes the 200-transaction test and leaves the $100,000 sales-volume test.

What sales tax rate do marketplace facilitators collect in Kentucky?

The flat 6% Kentucky state rate. Kentucky has no local-option sales taxes, so there are no county or city add-on rates to source. The tax applies to the entire sales price the buyer pays — marketplace commissions and platform fees do not reduce the taxable amount.

Do marketplace sales count toward my Kentucky nexus threshold?

Yes. Kentucky counts marketplace sales with a remote retailer's other Kentucky channels when testing the applicable nexus threshold. The 200-transaction test ends July 31, 2026, but those facilitated receipts remain part of the gross-receipts calculation. A retailer selling exclusively through Kentucky-registered marketplace providers is generally not required to open its own Kentucky sales and use tax account, and KRS 139.450 relieves marketplace retailers of collection liability on covered facilitated sales.

Is Etsy a marketplace facilitator in Kentucky?

For orders that Etsy documents as Kentucky facilitator-collected sales, Etsy collects and remits the 6% Kentucky tax under KRS 139.450. Keep Etsy's tax reports before excluding those orders from seller-side collection. Direct off-Etsy Kentucky sales remain the seller's responsibility when the seller has a separate registration duty.

Is eBay a marketplace facilitator in Kentucky?

Yes — eBay registered as a Kentucky marketplace provider and collects, files, and remits the 6% Kentucky sales tax on its facilitated transactions. Sellers still track listings for income tax and resale-certificate purposes.

Is DoorDash a marketplace facilitator in Kentucky?

Yes — DoorDash collects Kentucky's 6% 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 provider in Kentucky for the orders it processes, collecting and remitting the 6% Kentucky sales tax on the food and delivery charges it bills.

Does Shopify qualify as a marketplace facilitator?

Standard Shopify (your own standalone store) does NOT qualify — you're the seller of record and remain responsible for Kentucky registration, collection, and remittance once you cross the threshold. Shopify Markets Pro, however, does qualify as a marketplace facilitator in many states.

Kentucky Marketplace Facilitator Sales Tax Rules — 2026

Updated 2026-07-25

Reviewed by Nexus by State research team using official state tax sources. Last reviewed 2026-07-25.

Guide content last reviewed: 2026-07-25

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.).

Kentucky's marketplace-provider threshold changes August 1, 2026

Through July 31, 2026, Kentucky tests a marketplace provider against both a $100,000 gross-receipts test and a 200-transaction test. The provider combines its own Kentucky sales with the Kentucky sales it facilitates and registers when it meets either test in the immediately preceding or current calendar year. Beginning August 1, 2026, 2026 HB 757 removes the transaction-count test from KRS 139.450. The new rule is sales-volume-only: combined Kentucky gross receipts must exceed $100,000 in the preceding or current calendar year. Last verified: 2026-07-25.

Registration timing: the provider must register and begin collecting no later than the first day of the calendar month that is at most 60 days after the applicable threshold is reached. Through July 31 that can be either the dollar or transaction test; beginning August 1 only the dollar test remains. HB 249 (effective July 1, 2021) previously extended the registration window from 30 to 60 days and let a provider report direct and facilitated sales under one permit.

Transition example: 300 Kentucky orders totaling $40,000 meet the transaction-count test through July 31, 2026. The same facts do not cross the sales-volume-only economic-nexus threshold beginning August 1. Closing an existing account is a separate registration question to confirm with Kentucky DOR.
Tax is collected on the entire sales price paid by the purchaser (KRS 139.450(2)(e)) — marketplace commissions and platform fees do not reduce the taxable amount.
The marketplace retailer is relieved of all liability for collection and remittance on sales the provider facilitates (KRS 139.450(4)(b)); the provider — not the seller — is audited on those facilitated sales.
Unlike most states, Kentucky DOR guidance has remote retailers count all sales channels — including marketplace sales — toward the applicable threshold. The 200-transaction test ends July 31, 2026; the gross-receipts calculation remains. A retailer selling exclusively through Kentucky-registered marketplace providers, however, is not required to open its own Kentucky sales and use tax account.
Kentucky has no local-option sales taxes, so facilitated orders are taxed at the flat 6% statewide rate — no district sourcing to reconcile.

Sources: KRS 139.450 through July 31, 2026, KRS 139.450 effective August 1, 2026, 2026 HB 757 final legislative record, Kentucky DOR Remote Retailers & Marketplace Providers FAQ (legacy operational guidance), date_retrieved: 2026-07-25.

Source note: the DOR FAQ still displays the pre-HB 757 transaction threshold and older registration wording. The two effective-dated KRS 139.450 versions above control the August 1 threshold transition.

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.

Marketplace Facilitator sales tax in other states

Compare Kentucky's marketplace facilitator rules with nearby and similar states' marketplace facilitator sales tax guides:

Frequently asked questions

What are Kentucky's marketplace facilitator sales tax requirements?: Through July 31, 2026, KRS 139.450 requires a marketplace provider to combine its own and facilitated Kentucky sales and register after meeting the $100,000 gross-receipts test or the 200-transaction test in the preceding or current calendar year. Beginning August 1, 2026, 2026 HB 757 removes the transaction test and leaves a sales-volume-only threshold: combined Kentucky gross receipts must exceed $100,000. Collection starts no later than the first day of the calendar month at most 60 days after crossing the applicable threshold.
What is the Kentucky marketplace facilitator threshold?: Through July 31, 2026, the threshold is the $100,000 gross-receipts test or 200 or more separate Kentucky transactions in the immediately preceding or current calendar year. Beginning August 1, 2026, the 200-transaction test ends and the provider instead registers when its own plus facilitated Kentucky gross receipts exceed $100,000 in the preceding or current calendar year.
What changes for Kentucky marketplace facilitators on August 1, 2026?: The 200-transaction nexus test disappears. Under 2026 HB 757 and the version of KRS 139.450 effective August 1, 2026, a marketplace provider uses a sales-volume-only test and registers when combined direct and facilitated Kentucky gross receipts exceed $100,000 in the preceding or current calendar year. For example, 300 Kentucky orders totaling $40,000 no longer cross the economic-nexus threshold by transaction count alone.
When did Kentucky's marketplace facilitator law take effect?: The original marketplace-provider duties took effect July 1, 2019 under 2019 HB 354 and KRS 139.450. HB 249 changed the registration window and permit mechanics on July 1, 2021. The next threshold change takes effect August 1, 2026, when 2026 HB 757 removes the 200-transaction test and leaves the $100,000 sales-volume test.
What sales tax rate do marketplace facilitators collect in Kentucky?: The flat 6% Kentucky state rate. Kentucky has no local-option sales taxes, so there are no county or city add-on rates to source. The tax applies to the entire sales price the buyer pays — marketplace commissions and platform fees do not reduce the taxable amount.
Do marketplace sales count toward my Kentucky nexus threshold?: Yes. Kentucky counts marketplace sales with a remote retailer's other Kentucky channels when testing the applicable nexus threshold. The 200-transaction test ends July 31, 2026, but those facilitated receipts remain part of the gross-receipts calculation. A retailer selling exclusively through Kentucky-registered marketplace providers is generally not required to open its own Kentucky sales and use tax account, and KRS 139.450 relieves marketplace retailers of collection liability on covered facilitated sales.
Is Etsy a marketplace facilitator in Kentucky?: For orders that Etsy documents as Kentucky facilitator-collected sales, Etsy collects and remits the 6% Kentucky tax under KRS 139.450. Keep Etsy's tax reports before excluding those orders from seller-side collection. Direct off-Etsy Kentucky sales remain the seller's responsibility when the seller has a separate registration duty.
Is eBay a marketplace facilitator in Kentucky?: Yes — eBay registered as a Kentucky marketplace provider and collects, files, and remits the 6% Kentucky sales tax on its facilitated transactions. Sellers still track listings for income tax and resale-certificate purposes.
Is DoorDash a marketplace facilitator in Kentucky?: Yes — DoorDash collects Kentucky's 6% 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 provider in Kentucky for the orders it processes, collecting and remitting the 6% Kentucky sales tax on the food and delivery charges it bills.
Does Shopify qualify as a marketplace facilitator?: Standard Shopify (your own standalone store) does NOT qualify — you're the seller of record and remain responsible for Kentucky registration, collection, and remittance once you cross the threshold. Shopify Markets Pro, however, does qualify as a marketplace facilitator in many states.

Sources

date_retrieved: 2026-05-24

Page-specific sources — date_retrieved: 2026-07-25