What is the Kentucky economic nexus threshold in 2026?

For 2026, Kentucky's economic nexus threshold is $100,000 in gross sales OR 200 transactions, in effect since 2018-10-01. Remote sellers measure Kentucky-sourced gross sales (typically over a rolling 12 months or the prior calendar year, depending on state rules) against this number to decide when registration begins.

What is the current Kentucky economic nexus threshold?

$100,000 in gross sales OR 200 transactions, effective since 2018-10-01. Sales through marketplace facilitators are usually excluded from this count.

What counts toward the Kentucky threshold?

Gross sales of tangible personal property and most services into Kentucky, including resale transactions in some states. Marketplace-facilitated sales are typically excluded; check the specific rule.

How often is the Kentucky threshold recalculated?

Most states apply a rolling 12-month lookback (some use the prior calendar year). You cross the threshold when your trailing-12-months sales exceed the dollar or transaction count.

Kentucky Sales Tax Economic Nexus Threshold (2026)

Updated 2026-05-24

If your Thresholds 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.

Kentucky's economic nexus threshold, in detail

The current Kentucky threshold is $100,000 or 200 transactions, in effect since 2018-10-01.

What counts toward the threshold: gross sales of tangible personal property AND most services delivered to Kentucky customers. Resale sales may count in some states. Marketplace-facilitated sales typically do NOT count. Check the state's specific definitions before computing.

Counting periods

Most states apply the threshold on a rolling 12-month basis — look at the prior 12 months as of the end of each month. Some states look at the prior calendar year specifically. Kentucky's rule is stated in its regulations; your registration must begin no later than the first day of the month after you cross, unless the state allows a grace period.

Common threshold-tracking mistakes

Measuring by calendar year only, missing when a rolling 12-month window would have triggered earlier.
Including tax in “gross sales”. The threshold uses pre-tax revenue; double-counting tax in the threshold figure can prematurely trigger registration.
Forgetting that the threshold resets — falling below in a subsequent year doesn't automatically deregister you. You must request deregistration through the Kentucky DOR.

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

What is the Kentucky economic nexus threshold in 2026?: For 2026, Kentucky's economic nexus threshold is $100,000 in gross sales OR 200 transactions, in effect since 2018-10-01. Remote sellers measure Kentucky-sourced gross sales (typically over a rolling 12 months or the prior calendar year, depending on state rules) against this number to decide when registration begins.
What is the current Kentucky economic nexus threshold?: $100,000 in gross sales OR 200 transactions, effective since 2018-10-01. Sales through marketplace facilitators are usually excluded from this count.
What counts toward the Kentucky threshold?: Gross sales of tangible personal property and most services into Kentucky, including resale transactions in some states. Marketplace-facilitated sales are typically excluded; check the specific rule.
How often is the Kentucky threshold recalculated?: Most states apply a rolling 12-month lookback (some use the prior calendar year). You cross the threshold when your trailing-12-months sales exceed the dollar or transaction count.

Sources

date_retrieved: 2026-05-24