Kentucky's statewide sales tax is 6 percent, but your total rate depends on where you shop

Kentucky charges a base sales tax of 6 percent on most purchases. However, many counties add a local tax on top of that, which means your actual rate at checkout can range from 6 percent to 7 percent depending on which county you're in. Some cities within those counties may add an additional tax, pushing the total even higher in specific locations.

The state tax applies to tangible goods — items you can touch and take home. It does not explore to services like haircuts, repairs, or professional fees. Food bought at a grocery store is not taxed, but prepared food from a restaurant or deli counter is taxed at the full rate.

Because Kentucky allows counties to set their own local rate, you need to know which county you're shopping in to find your exact total. A purchase that costs $100 in one county might have a different tax amount in another.

Key Takeaways

  • Kentucky's state sales tax is 6 percent, but most counties add 0.5 to 1 percent on top of that, bringing totals to 6.5 or 7 percent.
  • Grocery store food is not taxed, but restaurant meals, prepared deli items, and fast food are taxed at your full local rate.
  • Some cities add their own local tax in addition to county tax, so your rate can vary even within the same county.
  • You can find your exact rate by entering your zip code on the Kentucky Department of Revenue website or asking a cashier.

How local county taxes work in Kentucky

Kentucky gives each county the power to add a local sales tax on top of the state's 6 percent. Most counties have chosen to do so. The local rate is usually between 0.5 and 1 percent, which means most shoppers in Kentucky pay between 6.5 and 7 percent total.

Some counties have no local tax and stay at the state rate of 6 percent. Others have added the maximum allowed. The revenue from local taxes goes to the county government for schools, roads, and public services, not to the state.

A few cities within counties have also added their own local tax. This is less common, but it means your rate can be different depending on which city you're in, even if you're in the same county. For example, two stores in the same county but different cities might charge different total rates.

What is and is not taxed in Kentucky

Groceries are not taxed in Kentucky. This includes bread, milk, eggs, produce, meat, and other food you buy at a supermarket to cook at home. However, the moment that food is prepared — whether at a restaurant, deli counter, or fast-food drive-through — it becomes taxable.

Clothing and shoes are not taxed in Kentucky, which is a significant savings on back-to-school shopping and winter coats. Prescription medications are also exempt from sales tax. Over-the-counter medicines like cold medicine or pain relievers are taxed.

Services are generally not taxed. If you pay a plumber, electrician, accountant, or barber, you do not pay sales tax on that service. However, if you buy a physical product from them — like a part they install or a product they sell you — that product is taxed.

Finding your exact sales tax rate by location

The Kentucky Department of Revenue maintains a list of all county and local tax rates on its website. You can search by county name or zip code to find your exact rate. This is the most reliable way to know what you will pay before you shop.

If you are shopping online and the seller is based in Kentucky, they should charge your local rate based on your shipping address. If you are shopping from out of state, the seller may not charge Kentucky tax at all, depending on their business location and size.

If you cannot find your rate online, you can call the Kentucky Department of Revenue directly or ask a cashier at a local store. They can tell you the total rate for your specific address.

Sales tax on vehicles and large purchases

Kentucky charges sales tax on vehicle purchases, including cars, trucks, motorcycles, and ATVs. The tax is calculated on the purchase price and is due when you register the vehicle with the state. If you trade in an old vehicle, the tax is calculated on the net price after the trade-in value is subtracted.

If you buy a vehicle out of state and bring it to Kentucky, you will owe Kentucky sales tax when you register it, even if you already paid tax in another state. Kentucky will give you a credit for any tax you paid elsewhere, but you may still owe the difference if Kentucky's rate is higher.

For other large purchases like furniture or appliances, the same 6 percent state rate plus your local rate applies. There is no special rule for big-ticket items.

Tax-free shopping periods in Kentucky

Kentucky does not have an official statewide tax-free shopping week like some other states do. However, the state does exempt certain items from tax year-round, including groceries, clothing, and prescription medications, as mentioned above.

Some cities or counties may run their own promotional tax-free events, but these are not state-sponsored and vary by location. Check with your local city or county government to see if any are planned in your area.

Frequently Asked Questions

What is the sales tax rate in Louisville?

Louisville is in Jefferson County, which has a local tax rate of 1 percent on top of Kentucky's 6 percent state tax, for a total of 7 percent. Some areas within Louisville may have additional local taxes, so confirm your exact rate by zip code on the Kentucky Department of Revenue website.

Do I pay sales tax on online purchases from Kentucky sellers?

Yes, if the seller is based in Kentucky or has a physical presence there, they must charge you Kentucky sales tax based on your shipping address. If the seller is out of state and has no Kentucky location, they may not charge tax, depending on their size and business structure.

Is clothing tax-free in Kentucky?

Yes, clothing and shoes are not subject to sales tax in Kentucky. This includes everyday wear, work clothes, and athletic shoes. However, accessories like hats, belts, and bags may be taxed depending on how they are classified.

Do I owe Kentucky sales tax on a vehicle I bought out of state?

Yes, you will owe Kentucky sales tax when you register the vehicle in the state. Kentucky will credit any sales tax you paid in another state, but you may owe the difference if Kentucky's rate is higher. Bring your out-of-state receipt to the registration office.

Are restaurant meals taxed differently than grocery store food?

Yes. Unprepared food from a grocery store is not taxed. Any food that has been prepared — including restaurant meals, deli items, and fast food — is taxed at your full local rate, which is usually 6.5 to 7 percent in Kentucky.