Kentucky's sales tax rate and what it covers

Kentucky charges a 6% state sales tax on most goods and services you buy. Some counties add a local tax on top of that — usually between 0.5% and 2% — so your total rate depends on where you make the purchase. A few items are taxed at a lower rate or not taxed at all, which is where things get specific.

The 6% applies to clothing, electronics, furniture, groceries at the checkout (not restaurant meals), and most other tangible goods. Services like haircuts, repairs, and professional fees are generally not taxed. Groceries for home use — bread, milk, vegetables, meat — are tax-free, but prepared food and restaurant meals are taxed at the full rate.

Some counties in Kentucky have voted to add a local option sales tax. This means if you buy something in Jefferson County (Louisville), you pay 6% state plus up to 2% local. In other counties, you might pay just the 6% state rate. The county rate is set by local government and can change, so the total you pay varies by location.

Key Takeaways

  • Kentucky's base sales tax is 6%, but your actual rate depends on which county you are in because many counties add 0.5% to 2% on top.
  • Groceries you cook at home are not taxed, but restaurant meals and prepared food are taxed at the full rate.
  • Clothing and most goods are taxed at the full rate in Kentucky, unlike some states that exempt clothing.
  • You can find your exact local rate by entering your address on the Kentucky Department of Revenue website or asking the cashier.

Which items are taxed and which are not

Food you buy to cook at home — produce, meat, dairy, bread, canned goods — is not taxed in Kentucky. This covers almost everything in a grocery store's main aisles. However, prepared foods cross into taxable territory: deli items, rotisserie chicken, bakery items made in-store, and anything from a hot bar are taxed. The rule is roughly whether the food is ready to eat or requires cooking.

Clothing and shoes are taxed at the full rate in Kentucky, with no exemption. A shirt, pants, or pair of shoes you buy in a store is subject to the 6% state tax plus any local tax. This is different from some neighboring states that do not tax clothing.

Prescription medications are not taxed. Over-the-counter drugs and vitamins are taxed. Medical equipment like wheelchairs, canes, and hearing aids may may have access to for exemption, but you need to show a prescription or medical documentation at the time of purchase.

Local county taxes and how to find your rate

Kentucky allows counties to vote on adding a local sales tax. If a county passes this, the rate is added to the 6% state tax. Some counties have voted for 1%, others for 2%, and a few have no local tax at all. This means the person buying the same item in two different Kentucky counties pays different amounts.

To find your exact rate, enter your address on the Kentucky Department of Revenue website (revenue.ky.gov) or call your county clerk's office. You can also ask the cashier when you check out — they will know the rate for that location. The rate does not change based on what you buy; it is the same percentage for all taxable items in that county.

If you live near a county line, you might notice people driving to the lower-tax county to make large purchases. This is legal, but the tax you owe is based on where you make the purchase, not where you live.

Who collects the tax and where it goes

The business selling you the item — the store, restaurant, or service provider — collects the sales tax and sends it to Kentucky. They do not keep it; they hold it and remit it monthly or quarterly to the state. The state portion goes to the general fund, and the local portion goes to the county that added it.

Businesses are responsible for collecting the correct amount and filing it on time. If a store fails to collect or remit sales tax, the state can audit them and impose penalties. As a buyer, you do not file anything; the tax is calculated and collected at the point of sale.

Sales tax on online and out-of-state purchases

If you buy something online from a Kentucky seller, Kentucky sales tax applies. If you buy from an out-of-state seller, the rule depends on whether that seller has a physical presence or significant sales in Kentucky. Large online retailers like Amazon now collect Kentucky sales tax on most purchases shipped to Kentucky addresses. Smaller sellers may not, and technically you owe "use tax" on those purchases, though it is rarely enforced for individual buyers.

The safest assumption is that if you are buying from a major retailer — online or in-store — and it is being shipped to Kentucky, sales tax will be charged. If you are unsure, check the checkout page before you complete the purchase.

Frequently Asked Questions

Do I pay sales tax on groceries in Kentucky?

No, groceries for home use are not taxed. This includes produce, meat, dairy, bread, and canned goods. However, prepared foods like deli items, hot bar food, and restaurant meals are taxed at the full rate.

Is clothing taxed in Kentucky?

Yes, clothing and shoes are taxed at the full 6% state rate plus any local county tax. Kentucky does not have a clothing exemption like some other states do.

What is the total sales tax rate where I live?

The total is 6% state plus your county's local rate (usually 0.5% to 2%). To find your exact rate, enter your address on revenue.ky.gov or call your county clerk's office. The rate varies by location within Kentucky.

Do I owe sales tax on things I buy online?

If you buy from a major retailer shipping to Kentucky, sales tax is usually collected at checkout. If you buy from a smaller seller that does not collect it, you technically owe use tax, though it is rarely enforced for individual purchases.

Why is my sales tax different from the person next to me?

You may live or be shopping in different counties. Each county can set its own local tax rate on top of the 6% state rate, so totals vary across Kentucky. Check your receipt to see the exact rate charged.