The state of Kentucky levies a 6% state sales tax on the retail sale, lease or rental of most goods and some services. There are no local sales taxes in the state of Kentucky, and as a result, there are no direct Kentucky sales tax exemptions.
Use tax is also collected on the consumption, use or storage of goods in Kentucky if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Kentucky on or before February 20th.