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A state sales tax is levied at the rate of 6% on the purchase or lease price of taxable goods and on utility services. Local sales taxes are not levied in Kentucky.

The Kentucky Constitution requires the state to tax all classes of taxable property, and state statutes allow local jurisdictions to tax only a few classes. All locally taxed property is subject to county  taxes and school district taxes (either a county school district or an independent school district).

Property located inside city limits may also be subject to city property taxes. Property assessments  in Kentucky are at 100% fair cash value. Special local taxing jurisdictions (fire protection districts, watershed districts and sanitation districts) levy taxes within their operating areas (usually a small  portion of the community or county).

Click here for general fact sheets on federal, state and local business and personal taxes.



Taxes & Incentives