Kentucky Sales Tax Changes 2024

1
KENTUCKY SALES TAX CHANGES 2024
KEY UPDATES AND INSIGHTS FOR BUSINESSES AND
CONSUMERS
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2
KEY SALES TAX RATE OVERVIEW
General Sales Tax in 2024

• Kentuckys statewide sales tax rate remains at
  6, unchanged from 2023.
• No additional local sales taxensures uniformity
  across the state.

3
WHATS NEW IN 2024?
NOTABLE CHANGES

• Rate Increase State sales tax increased to 6.5
  as of January 2024.

EXPANDED TAX BASE

• Services like lawn care, personal training, and
  digital subscriptions are now taxable.
• Began in February 2024.

LUXURY TAX

• 2 surcharge on luxury items (jewelry, vehicles gt
  100,000).
• Effective May 2024.

4
E-COMMERCE AND MARKETPLACE SALES
ONLINE SALES TAX UPDATES

• Threshold 100,000 in sales or 200 transactions
  triggers tax collection.
• Marketplace Facilitators Must collect and remit
  taxes for third-party sellers.
• Stronger Enforcement starting March 2024.

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OUR TEAM
EXCISE TAXES IN KENTUCKY
KEY EXCISE TAX RATES

• Alcoholic Beverages 2.50/barrel (beer),
  1.92/gallon (spirits).
• Tobacco Products 1.10/pack of cigarettes, 15
  of wholesale price (others).
• Fuel 0.26/gallon (gasoline).

6
UNDERSTANDING USE TAX

• Applies to out-of-state purchases used in
  Kentucky.
• Rate matches sales tax 6.
• Paid directly by consumers if not collected by
  the seller.

USE TAX REQUIREMENTS
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TAX COMPLIANCE SIMPLIFIED
New digital platform for tax filing (April 2024).
01
Reduces admin burden for businesses
02
Regular filing ensures complianceavoid penalties
and interest.
03
8
NEXUS RULES IN 2024
Physical Economic Nexus

• Physical Nexus Stores, employees, property in
  Kentucky.

• Economic Nexus

• 100,000 in sales OR 200 transactions.
• Applies to remote sellers and marketplace
  facilitators.

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KENTUCKY TAX BENEFITS
Why Kentucky Stands Out

• Simplified tax system with no local sales taxes.
• Consistent rates across goods, services, and
  digital products.
• Compliance tools for businesses.

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