Collect tax in Kentucky

In Kentucky, Stripe Tax supports calculation and collection of sales tax (including seller use tax) and additional tax types.

When to register for tax collection

See Thresholds to get insights about your potential tax registration obligations in Kentucky. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the monitoring tool works.

Sales tax

Remote sellers must register to collect and remit sales tax in Kentucky when, previous or current calendar year, they do one of the following:

• Exceed a sales threshold of 100,000 USD
• Meet or exceed a volume threshold of 200 transactions

The thresholds include sales of tangible personal property and digital property, whether taxable or nontaxable, including wholesale sales (sales for resale) and marketplace sales. The thresholds exclude sales of services.

If your Origin address in the tax settings page of the Dashboard is in Kentucky, you’re not a remote seller and you must register due to your physical presence in the state.

Other taxes

We also support calculation and collection of the Kentucky State and Local Communications Tax (link requires US location or VPN) if you sell video streaming to customers in Kentucky. This includes:

• Multi Channel Video Programming Excise Tax
• Utility Gross Receipts License Tax

These taxes have no remote seller threshold because they only apply if your business has a physical presence in Kentucky. Stripe doesn’t include transactions for this tax in its threshold monitoring.

Register to collect tax

Register for tax in Kentucky at the tax authority.

Read our guide to navigate sales tax registration for help. You can also use Stripe to register on your behalf.

After registering, add your registration in the Stripe Dashboard to start collecting tax on your transactions in Kentucky. You must enable the Kentucky State and Local Communications Tax as a separate registration in Stripe, but this registration activates all state and local taxes of this type.

How we calculate taxes

Stripe calculates the taxes that apply to your customer’s location.

Report and file your taxes

Stripe provides reports of your completed tax transactions. Go to Registrations to access these reports.

Exports

The tax transaction data export provides a comprehensive and aggregated view of transactions by location, including a breakdown of individual tax amounts. Learn more about tax reporting exports.

Location reports

Location reports offer a summary of transaction and refund data for specific US locations and align with Kentucky filing requirements. You have the option to report on an annual, fiscal year, quarterly, or monthly basis.

Reporting-specific considerations:

• The location reports don’t include transactions with the Kentucky State and Local Communications Tax as these are filed to the state using a different report. To see transactions with these taxes, you can use the exports.

Filing

Stripe Tax has filing partners—Taxually, Marosa, and Hands-off Sales Tax (HOST)—to help automate your tax filing. These partners automatically sync your tax transaction data in real time, eliminating the need for manual data entry or file transfers. Learn more about tax filing.