Kentucky ends the 200-transaction economic nexus threshold for remote sellers

If you’ve been registered in Kentucky because you crossed 200 transactions but stayed under $100,000 in sales, deregistration may be possible. But trailing nexus rules apply and a tax advisor should sign off before you do anything.

Here’s what changed and what to check.

What changed

• Previous rule: Economic nexus triggered at $100,000 in gross sales OR 200 or more separate transactions into Kentucky in the current or previous calendar year — whichever came first
• New rule: Economic nexus triggers at $100,000 in gross sales only — the 200-transaction threshold is eliminated ^[1]
• Effective date: August 1, 2026
• Enacted by: Kentucky HB 757 ^[2]
• Scope of the $100,000 threshold: applies to tangible personal property, digital property, and services delivered to Kentucky purchasers.

For a full breakdown of Kentucky’s sales tax rates and rules, see our Kentucky sales tax guide.

Who this affects

• Remote sellers registered in Kentucky solely due to the 200-transaction threshold who are under $100,000 in sales. The transaction threshold no longer applies after August 1. Deregistration may be an option, but consult a tax advisor first given trailing nexus rules.
• High-volume, low-AOV sellers. If you’ve been staying compliant based on transaction count, audit your Kentucky sales dollar volume now to understand where you stand under the new standard.
• Marketplace sellers. Marketplace facilitator sales count toward the $100,000 threshold. Confirm how your platform is calculating Kentucky exposure.
• Multi-state ecommerce sellers tracking nexus thresholds across states. Kentucky joins a growing list of states that have moved to sales-only thresholds, including Alaska, California, Colorado, Illinois, Indiana, and others.

What sellers should do right now

• Audit your Kentucky sales volume before August 1. Determine whether you exceed $100,000 in sales to Kentucky purchasers in the current or previous calendar year, independent of your transaction count.
• If you’re registered solely due to the 200-transaction threshold and are under $100,000 in sales, talk to a tax advisor before deregistering. Trailing nexus rules can create liability for periods after you stop collecting if not handled correctly.
• If you’re over $100,000 in Kentucky sales, nothing changes. You remain registered and obligated to collect.
• Do not assume the transaction count still matters after August 1, 2026. It does not.