2024 Guide to Sales Tax in Louisville, Kentucky

What is the Sales Tax in Louisville?

The total sales tax rate in Louisville combines the state tax with no additional local taxes. Louisville’s sales tax consists only of the Kentucky state tax rate.

Breakdown of Sales Tax in Louisville

• State Sales Tax: 6.00%
• County Sales Tax: 0.00%
• City Sales Tax: 0.00%
• Special Sales Tax: 0.00%

What is Jefferson County Sales Tax?

In Louisville, which is part of Jefferson County, there is no additional county sales tax, meaning the rate remains consistent throughout.

Tax Rates in Louisville, Kentucky

Here are the sales tax rates for the top 10 most populated zip codes in Louisville:

Other Tax Rates for Louisville

Here are some other applicable tax rates for businesses in Louisville:

What Items are Taxable in Louisville?

In Kentucky, certain items are taxable while others are exempt. Common taxable items include:

What Items are Exempt from Taxes in Louisville?

Some items are exempt from sales tax in Kentucky, typically for essential goods or to encourage certain purchases:

Who Needs to Collect Sales Tax in Louisville?

In Louisville, businesses need to collect sales tax if they have either physical or economic nexus in Kentucky.

Physical Nexus

You have a physical presence in Kentucky if you:

• Own or lease property in Kentucky
• Have employees in Kentucky
• Maintain inventory in Kentucky

Economic Nexus

You have economic nexus if your sales into Kentucky exceed $100,000 or 200 transactions in the current or previous calendar year.

How to Get a Sales Tax Permit in Louisville?

If you meet the nexus requirements, you must register for a sales tax permit in Kentucky. Here’s how:

1. Visit the Kentucky Department of Revenue website.
2. Complete the application for a sales tax permit.
3. Submit the application and await approval.

How Do You Charge the Right Amount for Sales Tax in Louisville?

Ensuring you charge the correct sales tax involves:

• Manually checking and updating rates: Regularly check the Kentucky Department of Revenue website for updates.
• Using sales tax software: Implement software like TaxCloud to automate rate updates and compliance.

How Do You File and Remit Sales Tax?

Sales tax returns are filed with the Kentucky Department of Revenue. Here’s how:

1. Collect sales tax from customers.
2. File your sales tax return online.
3. Remit the collected taxes to the state.

Conclusion

Understanding and complying with sales tax regulations in Louisville is essential for any business operating in Kentucky. Use this guide to navigate the complexities of sales tax and ensure your business remains compliant.