Kentucky sales tax codes and rates
Kentucky's state sales tax rate is 6%; county and city rates come on top and are not included. A Nefin company that sells into Kentucky gets 5 sales codes, each named after the line of the 51A102 it fills, so the return's figures add up as you invoice. Purchases you owe use tax on go under KY-23a, and Nefin works out the use tax due.
Kentucky codes from the 51A102
Each code is “KY-” plus the line it fills on the 51A102. Rates are the state rate only; add local rates in Settings, VAT rates, where you collect them.
| Code | What it covers | Rate |
|---|---|---|
| KY-22 | KY taxable receipts 6% (51A102 Line 22) | 6% |
| KY-2 | KY sales for resale (51A102 Line 2, code 020) | 0% |
| KY-6 | KY sales to government (51A102 Line 6) | 0% |
| KY-7 | KY interstate commerce (51A102 Line 7, code 070) | 0% |
| KY-18 | KY other deductions, with explanation (51A102 Line 18) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| KY-23a | KY purchases subject to use tax (51A102 Line 23(a)) | 0% |
Kentucky in the tax books
Nefin’s sales tax book has one row per invoice and one column per 51A102 line; these are the Kentucky columns and the totals worked out from them.
Sales Tax Book
Kentucky - 51A102
- [KY-22]Taxable receipts (Line 22)
- [KY-2]Sales for resale (Line 2)
- [KY-6]Sales to governmental units (Line 6)
- [KY-7]Interstate commerce (Line 7)
- [KY-18]Other deductions (Line 18)
Totals Nefin calculates
- [KY-1] Total receipts, excluding tax (Line 1; paper return includes tax)Sum of the net amounts in [KY-22] + [KY-2] + [KY-6] + [KY-7] + [KY-18]
- [KY-SalesTax] Sales tax 6% on Line 22 (tax line no. unconfirmed)Net amount × 6%, from [KY-22]
Use Tax Book
Kentucky - 51A102
- [KY-23a]Purchases subject to use tax (Line 23(a))
Totals Nefin calculates
- [KY-UseTax] Use tax 6% on Line 23(a) (tax line no. unconfirmed)Net amount × 6%, from [KY-23a]
Frequently asked questions
What is the Kentucky sales tax rate?
The state rate is 6%. Counties, cities and districts may add local rates, which vary by address and are not part of these codes.
Which Kentucky sales tax codes does Nefin set up?
5 sales codes from the 51A102, for example KY-22 (KY taxable receipts 6% (51A102 Line 22)), KY-2 (KY sales for resale (51A102 Line 2, code 020)), KY-6 (KY sales to government (51A102 Line 6)).
How does Nefin handle Kentucky use tax?
Book a purchase on which the vendor charged no Kentucky tax under KY-23a (KY purchases subject to use tax (51A102 Line 23(a))). The bill stays at the price you paid, and the use tax book works out the tax you owe at 6%.
Are these Kentucky codes official?
They are a starting point. Each code follows a line of the 51A102, but check them against your return before you file, and edit them in Settings, VAT rates.