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Alcohol Taxes

The Department of Revenue administers Alcohol Taxes on malt beverages, wine, and distilled spirits.
Alcohol Tax laws are located in Chapter 243 of the Kentucky Revised Statutes.

Alcohol Tax Modifications

After the effective date of July 14, 2018, microbreweries will file and remit the excise tax and wholesale sales tax using Form 73A638 (Microbrewer's Monthly Malt Beverage Tax Report) to the Department of Revenue (DOR) by the 20th of each month following the month of the transactions. Gross receipts of a microbrewery making wholesale sales shall be calculated by determining the dollar value amount that the microbrewer would have collected had it conveyed to a distributor the same volume sold to a consumer.  Wholesale sales are defined as a sale of malt beverages made by a microbrewery.

After the effective date, distributors of malt beverages are no longer required to collect and remit the wholesale sales tax for microbrewers. Distributors should use the updated version of Form 73A628 (Distributor's Monthly Malt Beverage Excise and Wholesale Sales Tax Report) to report and remit the excise tax and wholesale sales tax.

DOR Form 73A630 (Microbrewer's Retail Gross Receipts Report to Distributor) shall no longer be used by any distributor or microbrewer.

These changes will begin with the August 2018 reporting period, which is due September 20, 2018.

Effective April 13, 2018, distilleries, small farm wineries and wineries will now be permitted to ship alcoholic beverages directly to Kentucky consumers. A distillery, small farm winery or winery that ships alcoholic beverages directly to Kentucky consumers must do the following:

  • Be licensed in the state of Kentucky
  • Sell directly to Kentucky consumers over the legal drinking age
  • Deliver and ship alcoholic beverages through a licensed common carrier

Out-of-state distilleries will need to report and pay excise tax on shipments made directly to Kentucky consumers on Form 73A525 (Monthly Report of Distillers, Rectifiers or Bottlers). In-State Distilleries need to invoice the shipments to Kentucky consumers through the invoicing system with their licensed wholesaler for the purposes of tax collection. 

In and out-of-state small farm wineries and out-of-state wineries will need to report and pay excise tax on shipments made directly to Kentucky consumers on Form 73A576 (Vintner's Wine Report). See Alcohol Tax Rates and Form Requirements for more information.

Wine Size Limitations

  • Must be purchased in person not to exceed four cases per purchaser per day of wine
  • Winery-sponsored club programs can ship wine if the subscription is made in person and does not exceed one case per month per calendar year. 

Distilled Spirits Size Limitations

  • Must be purchased in person not to exceed four and one half liters per purchaser per day of distilled spirits
  • Distillery-sponsored club programs can ship distilled spirits if the subscription is made in person and does not exceed nine liters per calendar year.

​Imports for Personal Consumption

Alcohol imported for personal consumption shall be reported on Form 73A504, Acknowledgement of Tax Liability on Imported Alcoholic Beverages. This form is completed in quadruplicate and submitted to customs officials.

Alcohol Licenses

Alcohol licenses are issued by the Kentucky Alcoholic Beverage Control Board. They may be reached at abc.ky.gov or (502) 564-4850. 


Pay Alcohol Tax

Mail a check or money order made payable to "KY State Treasurer" to
     KY Department of Revenue
     Frankfort, KY 40619

All tax payment and e-file options

​Previous Wholesale Sales Tax Rates for Wine and Beer Per HB 445

DatesTax Rate
Previous July 1, 201511%
July 1, 2015 to May 31, 201610.75%
June 1, 2016 to May 31, 201710.50%
June 1, 2017 to May 31, 201810.25%
​June 1, 2018 and forward
​10%


Excise Tax

The Kentucky Department of Revenue conducts work
under the authority of the Finance and Administration Cabinet.