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Kentucky Sales Tax Guide for Small Businesses

Everything you need to know about sales tax in Kentucky — rates, deadlines, exemptions, and how to stay compliant without the headache.

Last updated March 2026

Quick Facts

State Rate

6.00%

Avg. Combined

6.00%

Filing Frequency

Monthly, Quarterly, or Annual

Vendor Discount

Yes

Home Rule

No

Kentucky Sales Tax Rates

Kentucky's state sales tax rate is 6.00%. Kentucky does not levy additional local sales taxes, so the rate is the same statewide.

Filing Deadlines & Frequency

Filing Frequency

Monthly, Quarterly, or Annual — assigned by KY DOR based on tax liability

Due Dates

20th of the month after the reporting period

File Online

Kentucky Department of Revenue — Kentucky Online Gateway: https://revenue.ky.gov/

What's Taxable for Restaurants & Food Businesses

Prepared Food

Yes — prepared food and restaurant meals are taxable at the full 6.00% combined rate.

Grocery Food

Exempt from sales tax. Grocery food is exempt. Prepared food, candy, and soft drinks are taxable at 6%.

Alcohol

Subject to sales tax plus a separate 11% wholesale tax on distilled spirits and wine

Vendor Discount

Kentucky offers a vendor discount

1.75% of tax due (vendor compensation) if filed and paid on time

This is money back in your pocket for filing on time. TaxAside files on time, every time — so you capture this discount automatically.

Penalties for Late Filing

Late Filing Penalty

2% per month, max 20% of tax due

Interest

Tax interest rate set by KY DOR, adjusted annually

Miss a deadline and Kentuckystarts charging penalties and interest immediately. That adds up fast on a busy restaurant's tax bill.

TaxAside's On-Time Guarantee covers up to $5,000 in penalties if we ever file late.

Calculate Your Kentucky Sales Tax

Kentucky Sales Tax Calculator
$
State tax (6.00%)$0.00
Est. local tax (0.00%)$0.00

Total tax (6.00%)$0.00
Total with tax$0.00

This calculator uses average combined rates. Your actual rate depends on your exact location.

Get your exact rate →

How TaxAside Helps in Kentucky

  • We file on time so you capture Kentucky's vendor discount automatically.
  • Daily set-asides mean no tax-day surprises. We pull, calculate, set aside, and file — you do nothing.
  • On-Time Guarantee covers up to $5,000 in penalties if we're ever late filing your Kentucky return.
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Tired of worrying about Kentucky sales tax?

Let TaxAside handle it. We connect to your POS, set aside the right amount every day, and file your return on time — guaranteed.

Start Your Free Trial

5-minute setup. No credit card required.