Kentucky Sales Tax Nexus: Economic Nexus Threshold (2026)
Kentucky's economic nexus threshold for remote sellers is $100,000 in sales, measured over the previous calendar year or current calendar year. Marketplace sales count toward Kentucky's threshold. Inventory or another physical presence in Kentucky generally creates nexus regardless of sales. The state rate is 6%.
Kentucky sales tax nexus: key facts
| Sales threshold | $100,000 |
|---|---|
| Transaction threshold | None |
| Test | Sales only |
| What counts | Gross receipts from sales of tangible personal property, digital property, or services delivered, transferred electronically, or provided to purchasers in Kentucky, including retail sales facilitated by a marketplace provider (KRS 139.340(2)(g) as amended by 2026 Ky. Acts ch. 161). |
| Measurement period | Previous calendar year or current calendar year |
| Marketplace sales count toward your threshold? | Yes, counted |
| Marketplace facilitator law | Yes: marketplaces generally collect on the sales they facilitate |
| State rate | 6% |
| Local sales taxes | No |
| Current threshold effective | August 1, 2026 |
| Recent change | Yes, see the note below |
| Registration | Official registration page |
| Last researched | September 23, 2026 |
The state rate is the statewide state-level rate only. Local and district rates are extra where they apply.
Recent change
HB 757 (2026 Ky. Acts ch. 161, Sections 1 and 16, effective 8/1/2026) repealed the 200-transaction test for remote retailers and marketplace providers, extended the threshold to services, and requires registration and collection no later than the first day of the calendar month that is at most 60 days after the threshold is reached.
Quick check: do you have nexus in Kentucky?
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What to do after crossing the Kentucky threshold
When it starts:
- Registration and collection are due no later than the first day of the calendar month that is at most 60 days after the threshold is reached.
- Confirm the numbers. Check your Kentucky sales against the measure and period in the key facts above.
- Register before you collect. Use Kentucky's official registration page. Collecting a state's tax without a registration is generally not allowed.
- Collect and file. Charge Kentucky sales tax on taxable sales from the start date, and file returns on the schedule the state assigns. Marketplaces generally collect on the sales they facilitate, so you usually collect on your direct sales.
- Look back. If you crossed the threshold in an earlier period and did not register, get advice on those periods. Many states have voluntary disclosure programs that may limit penalties.
Physical presence and inventory in Kentucky
Inventory or other property in the state (including Amazon FBA or 3PL warehouse inventory), employees, or an office generally creates physical-presence nexus regardless of the economic threshold.
Marketplace sellers in Kentucky
Do marketplace sales count toward your own threshold? Yes, counted.
The amended statute expressly includes 'retail sales facilitated by a marketplace provider on behalf of the remote retailer'. DOR's FAQ likewise says a remote retailer counts all its sales from marketplace platforms and its own direct sales; the seller then reports marketplace sales as a deduction when the provider collected.
Other things to know about Kentucky
- From 8/1/2026 only the more-than-$100,000 gross receipts test applies (previously $100,000 or 200 transactions).
- Single statewide 6% rate; Kentucky has no local sales taxes.
- Full member of the Streamlined Sales and Use Tax Agreement (SSUTA): remote sellers can register through the SST Registration System (sstregister.org) and may use a state-paid Certified Service Provider if eligible.
Frequently asked questions
What is the Kentucky economic nexus threshold?
$100,000 in sales, measured over the previous calendar year or current calendar year. What counts: Gross receipts from sales of tangible personal property, digital property, or services delivered, transferred electronically, or provided to purchasers in Kentucky, including retail sales facilitated by a marketplace provider (KRS 139.340(2)(g) as amended by 2026 Ky. Acts ch. 161).
Do marketplace sales count toward the Kentucky threshold?
Yes, counted. The amended statute expressly includes 'retail sales facilitated by a marketplace provider on behalf of the remote retailer'. DOR's FAQ likewise says a remote retailer counts all its sales from marketplace platforms and its own direct sales; the seller then reports marketplace sales as a deduction when the provider collected.
Does FBA or 3PL inventory in Kentucky create nexus?
Inventory or other property in the state (including Amazon FBA or 3PL warehouse inventory), employees, or an office generally creates physical-presence nexus regardless of the economic threshold.
When do I have to start collecting Kentucky sales tax?
Registration and collection are due no later than the first day of the calendar month that is at most 60 days after the threshold is reached.
Registration: official registration page.
Does Kentucky have a transaction-count test?
No. Kentucky uses only the dollar threshold. Acts ch. 161, Sections 1 and 16, effective 8/1/2026) repealed the 200-transaction test for remote retailers and marketplace providers, extended the threshold to services, and requires registration and collection no later than the first day of the calendar month that is at most 60 days after the threshold is reached.
Crossed the Kentucky threshold, or not sure? A professional can confirm it and handle registration.
Nexus Study + Registration + Cleanup
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- State-by-state review of your sales and inventory locations
- Registration in states where you have nexus
- Plan for any past-due periods (including voluntary disclosure where appropriate)
- Ongoing sales tax filing option
Disclaimer: This page provides general information for educational purposes and is not tax, legal or accounting advice. State rules change, and whether you have nexus can depend on facts not covered here. Confirm with Kentucky's official guidance or a qualified professional before acting. RAHA Financials is not affiliated with any state tax agency.
Sources
- Primary official source: https://apps.legislature.ky.gov/law/acts/26RS/documents/0161.pdf
- taxanswers.ky.gov: https://taxanswers.ky.gov/Sales-and-Excise-Taxes/Pages/Remote-Retailers-Marketplace-Providers-FAQs.aspx
- avalara.com: https://www.avalara.com/blog/en/north-america/2026/04/kentucky-removes-transaction-threshold-taxes-data-brokering-services.html
- streamlinedsalestax.org: https://www.streamlinedsalestax.org/for-businesses/remote-seller-faqs/remote-seller-state-guidance
