Kentucky Amazon Sales Tax
Kentucky enforces its marketplace facilitator law since July 2019, applies a flat 6% rate with no local sales tax, and hosts major Amazon fulfillment centers.
Overview
Kentucky's marketplace facilitator law took effect July 1, 2019 (HB 354). Kentucky applies a flat 6% state sales tax with no local sales tax add-ons, so the rate is 6% everywhere in the state. Amazon collects and remits Kentucky sales tax on orders it facilitates into the state.
Kentucky is a major Amazon fulfillment-center state — including the original Campbellsville fulfillment center and large operations around the Cincinnati/Northern Kentucky (Hebron) and Louisville air hubs — which historically created physical nexus for inventory stored there. Direct-seller economic nexus took effect earlier, on July 1, 2018 (HB 487), using a $100,000-or-200-transactions standard.
For Amazon-only sellers, Amazon's collection covers Kentucky marketplace orders, so there is no separate ongoing registration obligation tied solely to those sales. Sellers with direct (non-Amazon) Kentucky sales should evaluate the economic nexus thresholds and consult a tax professional for edge cases.
What FBA sellers still need to know
No registration for ongoing Amazon-only sales. Direct/non-Amazon sellers exceeding $100,000 in gross receipts or 200 or more separate transactions into Kentucky in the current or prior calendar year must register and remit.
This content is educational and not legal or tax advice. Sales tax law changes frequently and is jurisdiction-specific. Always verify with a qualified tax professional and the state revenue department before making compliance decisions.
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