Kentucky Sales Tax Rates and What They Apply To

Kentucky's statewide sales tax rate

Kentucky charges a 6 percent sales tax on most retail purchases. This is the base rate that applies across the state, though some cities and counties add their own local tax on top of it.

The 6 percent rate has been in place since 1990. When you buy something at a store in Kentucky, this is the minimum tax you will see on your receipt — but your actual total may be higher depending on where you are shopping.

Key Takeaways

• Kentucky's statewide sales tax is 6 percent, applied to most goods and some services.
• Local cities and counties can add their own sales tax on top of the state rate, ranging from 0 to 2 percent depending on location.
• Groceries, prescription medications, and medical equipment are exempt from Kentucky sales tax.
• Some services like haircuts and repairs are taxable in Kentucky, unlike in many other states.
• Your total sales tax rate depends on your specific city or county, so rates vary across the state.

Local sales taxes added to the state rate

On top of the 6 percent state tax, Kentucky cities and counties can impose their own local sales tax. These local rates vary by location and range from 0 to 2 percent. This means your total sales tax bill depends on exactly where you are shopping.

For example, Louisville adds a local tax that brings the combined rate higher than 6 percent, while some smaller counties may have no local tax at all. When you check your receipt, the total tax shown reflects both the state and local portions. If you are shopping near a county line, the tax rate can change depending on which side of the line the store is located on.

What is exempt from Kentucky sales tax

Kentucky does not tax groceries — this includes items like bread, milk, vegetables, and meat purchased for home consumption. Prepared foods and restaurant meals are taxed, but raw ingredients you buy to cook at home are not.

Prescription medications and certain medical equipment are also exempt. This includes items like wheelchairs, crutches, and oxygen equipment when prescribed by a doctor. Over-the-counter medications like pain relievers and cold medicine are taxable, but prescription drugs are not.

Clothing is generally not taxed in Kentucky, though this rule has some limits. Accessories like hats, gloves, and belts are taxed, but basic clothing items are exempt.

Services that are taxable in Kentucky

Kentucky taxes many services that some other states do not. Haircuts and salon services are subject to the 6 percent state tax plus any local tax. Repair services — whether for cars, appliances, or electronics — are also taxable. If you pay a plumber or electrician to fix something in your home, that labor is taxed.

Laundry and dry cleaning services are taxable. Rental services like car rentals are taxed as well. These service taxes can add up quickly on larger jobs, so it is worth factoring them into your budget when you are getting an estimate.

How to find your exact local sales tax rate

Your total sales tax rate depends on your city and county. The easiest way to find your exact rate is to check your most recent receipt from a local store — the tax rate is printed there. You can also contact your city or county tax assessor's office directly, or search online for "[your city] Kentucky sales tax rate."

If you are shopping online and the seller is based in Kentucky, they should charge you the sales tax for your delivery address. If you are buying from an out-of-state seller, Kentucky sales tax may not explore, depending on the seller's location and the type of item.

Sales tax on online purchases

When you order something online for delivery to a Kentucky address, the seller should charge you Kentucky sales tax if they have a physical presence in the state or meet certain sales thresholds. Large online retailers like Amazon typically charge Kentucky sales tax on most items shipped to the state.

Smaller sellers may not charge Kentucky tax, depending on their business structure and sales volume. The tax charged should match the rate for your specific delivery address, including any local taxes. If you believe you were charged incorrectly, check the seller's tax policy or contact their customer service.

Frequently Asked Questions

Do I pay sales tax on groceries in Kentucky?

No. Unprepared food items like produce, meat, dairy, and bread are not taxed. Restaurant meals, prepared foods, and items like candy and soft drinks are taxed at the full rate.

What is the sales tax rate in Louisville?

Louisville's combined state and local sales tax rate is higher than the statewide 6 percent base. Check your receipt or contact Louisville's tax office for the exact current rate, as local rates can change.

Are clothes taxed in Kentucky?

Basic clothing items are exempt from Kentucky sales tax. Accessories like belts, hats, and gloves are taxed. If you are unsure whether a specific item qualifies, ask the cashier before checkout.

Do I have to pay sales tax on services like haircuts?

Yes. Kentucky taxes most personal services including haircuts, repairs, and cleaning services. The tax applies at both the state and local level depending on your location.

Is prescription medicine taxed in Kentucky?

No. Prescription medications are exempt from Kentucky sales tax. Over-the-counter medications and vitamins are taxed at the standard rate.