State guide · KY
Kentucky sales tax and property tax
One rate in every county and city, no holiday, and a property tax bill that rewards paying early and punishes paying late.
Facts read on official Kentucky pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 6%
- Local sales taxes
- None
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $1,611
- Effective property rate
- 0.71% · #30 of 51
Kentucky charges 6% sales and use tax and nothing else at the register: the Department of Revenue states plainly that there are no local sales or use taxes, so the rate on a pair of shoes, a laptop or a lawn chair is identical in every county. Food for home and prescription drugs are exempt, clothing has no exemption, and there is no sales tax holiday. Summer 2026 brought three changes: data brokering services became taxable on August 1, sales by religious institutions became exempt the same day, and since July 15 cash totals are rounded to the nearest five cents because of the penny shortage. Vehicles pay a separate 6% usage tax to the county clerk. Kentucky still has a small state property tax, 10.9 cents per $100 of assessed value in 2024, on top of local rates. Census data show a median bill of $1,611 on a $226,000 home, an effective 0.71%, rank 30 of 51. Owners 65 or older, or totally disabled, deduct $49,100 from their assessment.
Total to pay
$106.00
Sales tax $6.00 · 6% of the price
| Price before tax | $100.00 |
| State tax · 6% | $6.00 |
| Local tax · not charged on this item | $0.00 |
| Total | $106.00 |
Rule applied: general state rate. How this is calculated.
Sales tax in Kentucky
With no local layer, the only number you need for most purchases is 6%: a $700 television costs $742.00 with tax anywhere in the Commonwealth, and the calculator above needs no local rate. The base keeps widening instead. Kentucky has been adding services to the tax list, and from August 1, 2026 that includes data brokering, the business of collecting and analyzing personal data to sell it. The same date ended the 200-transaction test for remote sellers, who now register only once their Kentucky sales pass $100,000.
The rounding rule is new and practical. Since July 15, 2026, a store that is paid in cash rounds the total, tax included, to the nearest five cents. An item priced $4.99 comes to $5.29 with tax and $5.30 in cash, but the retailer still owes the state the exact tax computed on the price.
A few exemptions are specific. Groceries are exempt, while candy, soft drinks, dietary supplements and prepared food are taxed. Prescription drugs and home medical oxygen are exempt, and so is an over-the-counter medicine when a prescriber writes a prescription for it. Motor vehicles do not pay sales tax at all: the county clerk collects the 6% motor vehicle usage tax at transfer or first registration, $1,800 on a $30,000 vehicle. Goods brought into Kentucky without tax owe the 6% use tax.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 6% | no | Single statewide 6% sales and use tax on tangible personal property, digital property and a growing list of services. The Department of Revenue states there are no local sales and use taxes in Kentucky. |
| Groceries (food for home) | 0% | no | Food and food ingredients for human consumption are exempt (KRS 139.485); alcoholic beverages, tobacco, candy, dietary supplements, soft drinks and prepared food are taxable. |
| Clothing | 6% | no | No clothing exemption; clothing is taxed at 6% like other tangible personal property. |
| Prescription drugs | 0% | no | |
| Motor vehicles (Motor Vehicle Usage Tax) | 6% | Vehicles pay a separate 6% usage tax collected by the county clerk at transfer or first registration, instead of sales tax. |
Local sales taxes
Kentucky has no local sales taxes.
Sales tax holidays in 2026
Kentucky has no sales tax holiday; none appears in Department of Revenue publications for 2026.
Worth knowing about Kentucky sales tax
- Kentucky has no city or county sales tax: the rate is 6% everywhere in the state. source
- Since August 1, 2026, 'data brokering services' (collecting and analyzing personal data for sale) are subject to the 6% sales tax. source
- From August 1, 2026, remote sellers must register only once they exceed $100,000 of Kentucky sales; the former 200-transaction threshold was repealed. source
- Because of the penny shortage, Kentucky law requires cash totals (tax included) to be rounded to the nearest five cents since July 15, 2026, but the retailer still owes the exact tax. source
- Sales made directly by religious institutions became exempt on August 1, 2026. source
- An over-the-counter drug is exempt when a prescription is issued for it, in addition to all prescription drugs and home medical oxygen. source
Property tax in Kentucky
Kentucky is one of the states that still levies its own property tax. The Department of Revenue sets the state real property rate each year, 10.9 cents per $100 in 2024, down from 12.2 cents in 2020, and must lower it whenever statewide assessments grow faster than 4%. Counties, cities, school districts and special districts add their rates, and the county sheriff mails one bill for all of them in the fall. Values are set at full fair cash value by the elected Property Valuation Administrator of each county, who must inspect every parcel at least once every four years.
The calendar on the bill matters as much as the rate. Pay by November 1 and the sheriff takes 2% off; pay by December 31 and you owe the face amount; in January a 5% penalty applies, and from February 1 to April 15 it jumps to 21%. On a typical bill of $1,611 for the median $226,000 home, that is the difference between $1,579 and $1,950. Bills still unpaid become certificates of delinquency that can be sold to third parties from mid-July, with interest at 1% a month.
There is no general homestead exemption. Owners 65 or older, and owners classified as totally disabled who receive disability payments, deduct $49,100 from their assessed value for the 2025 and 2026 assessments, which brings that median home down to $176,900 of taxable value; at the 2024 state rate, the state portion alone falls by about $53.52. Apply with your PVA. To challenge a value, meet the PVA during the May inspection period, then appeal to the local board of assessment appeals.
Property tax on a home in Kentucky
Typical bill per year
$1,611
| Per month | $134 |
| Median effective rate in Kentucky | 0.71% |
| Median bill paid | $1,611 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Kentucky |
|---|---|
| Median home value (owner-occupied) | $226,000 |
| Median real estate taxes paid | $1,611 |
| with a mortgage | $1,872 |
| without a mortgage | $1,247 |
| Effective rate (tax ÷ value) | 0.71% |
| Rank by effective rate (1 = highest) | 30 of 51 |
| Rank by median bill | 44 of 51 |
How the taxable value is set
All real property is assessed at 100% of its fair cash value by the elected county Property Valuation Administrator (PVA); farmland may be assessed at agricultural value. PVAs must physically inspect every parcel at least once every four years. If statewide assessments grow more than 4%, the state rate must be cut to hold state real property revenue growth to 4%. Who levies the tax: state and local: the Commonwealth levies a small state real property rate set each year by the Department of Revenue, on top of county, city, school district and special district rates; bills are mailed and collected by the county sheriff
Payment calendar: Bills are mailed in the fall by the sheriff. Typical schedule: 2% discount if paid October 1 - November 1; face amount November 2 - December 31; 5% penalty January 1-31; 21% penalty February 1 - April 15, after which the bill becomes a certificate of delinquency.
Other property tax relief
- Exemptions under Section 170 of the Constitution. Churches, schools, purely public charities, public property, libraries and non-profit cemeteries can be exempt; application on Form 62A023 to the PVA. source
Worth knowing about Kentucky property tax
- Kentucky still has a state property tax: the state real property rate was 10.9 cents per $100 of assessed value in 2024, down from 12.2 cents in 2020. source
- Paying the property tax bill by November 1 earns a 2% discount; waiting until February costs a 21% penalty. source
- The senior and disability homestead exemption is $49,100 of assessed value for 2025 and 2026. source
- Assessment appeals start with a conference with the PVA during the tax roll inspection period (first to third Monday of May), then go to the local board of assessment appeals. source
- Unpaid bills become liens sold to third-party purchasers from mid-July, with 1% monthly interest plus clerk and county attorney fees. source