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six percent use tax may be due if you make out-of-state purchases for storage, use or other consumption in Kentucky and did not pay at least six percent state sales tax to the seller at the time of purchase.

For example, if you order from catalogs, make purchases through the Internet, or shop outside Kentucky for items such as clothing, shoes, jewelry, cleaning supplies, furniture, computer equipment, software, office supplies, books, souvenirs, exercise equipment or subscribe to magazines, you may owe use tax to Kentucky.

It is important to remember that use tax applies only to items purchased outside Kentucky, including another country, which would have been taxed if purchased in Kentucky.

In addition to the use tax line found on the Sales and Use Tax​ returns and the Consumer Use Tax return​ for businesses, the Department provides three additional options  for individuals to report their use tax.

  1. Consumer Use Tax Return - Form​ 51A113(O) may be filed during the year each time you make taxable purchases.
  2. You can report and pay use tax on an annual basis at the same time you file your Kentucky individual income tax return. Please see the Use Tax Look-Up Table information below.
  3. County Clerks verify payment of use tax on tangible personal property purchased out-of-state and offered for titling or first-time registration in Kentucky.​​

Use Tax Look-Up Table to Assist Taxpayers in Reporting Untaxed Retail Purchases

Recent statistics on retail sales confirm that more and more consumers have potential use tax liability through the increased use of online shopping. Every year, internet sales continue to increase more rapidly than sales at traditional brick and mortar stores.

Kentucky consumers are required to report use tax on their individual income tax returns to accurately reflect their tax liability, and to ensure that our Kentucky-based retailers are not unfairly undercut by competing out-of-state retailers that fail to collect the tax on taxable products delivered into Kentucky.

When a web-based retailer or any out-of-state retailer does not collect the 6 percent Kentucky sales and use tax, the consumer is responsible for reporting and paying use tax on those untaxed purchases, in accordance with KRS 139.330. The easiest way for the individual consumer to report and pay the use tax is on the state income tax return.

The Look-Up Table provides an option to report estimated use tax owed on retail purchases based upon Kentucky adjusted gross income when sales receipts are not readily available to calculate the actual unpaid use tax liability.​​​

Tax Table Lookup
Adjusted Gross IncomeEstimated Tax
$0 - $10,000$4
$10,001 - $20,000$12
$20,001 - $30,000$20
$30,001 - $40,000$28
$40,001 - $50,000$36
$50,001 - $75,000$50
$75,001 - $100,000$70
Above $100,000Multiply AGI by 0.08% (0.0008)

*AGI from line 9 on KY Form 740 or KY Form 740-NP or line 1 on KY Form 740-EZ.

​The table, along with the Use Tax Calculation Worksheet, is also located in Form 740, line 27, and Form 740 Instructions​, page 12.​  The current year versions of these forms may be found on DOR's Individual Income Tax page.

Pay Consumer Use Tax

Please use one of the following options to pay your Consumer Use Tax:

Electronic payment:  Choose to pay directly from your bank account or by credit card.  Service provider fees may apply.

Mail a check or money order made payable to "KY State Treasurer" to
     KY Department of Revenue
     Frankfort, KY 40620-0003

All tax payment and e-file options

Notice to Remote Vendors​​

Out-of-state retailers with no legal requirement to collect tax in this state, and who expect more than $100,000 in gross annual sales to Kentucky residents, must notify their Kentucky customers that use tax must be reported and paid directly to the Department of Revenue on applicable purchases in accordance with KRS 139.450.

The notice must be readily visible and contain the information set forth as follows:

  • The retailer is not required to and does not collect Kentucky sales or use tax;
  • The purchase may be subject to Kentucky use tax unless the purchase is exempt from taxation in Kentucky;
  • The purchase is not exempt merely because it is made over the Internet, by catalog, or by other remote means; and
  • The Commonwealth of Kentucky requires Kentucky purchasers to report all purchases of tangible personal property or digital property that are not taxed by the retailer and pay use tax on those purchases unless exempt under Kentucky law. The tax may be reported and paid on the Kentucky individual income tax return or by filing a consumer use tax return with the Kentucky Department of Revenue.

View recent correspondence on this subject​.

Credit Against the Kentucky Use Tax Due

You may reduce or eliminate the amount of Kentucky use tax due by the amount of a different state sales tax paid on the same property to the out-of-state seller. The reduction may not exceed the amount of Kentucky use tax due on the purchase. For example, if Georgia state sales tax of 4 percent is paid, only the additional 2 percent is due to Kentucky, or if Illinois state sales tax of 6.25 percent is paid, no additional Kentucky use tax is due. - Sales tax paid to a city, county or country cannot be used as a credit against the Kentucky use tax due.

Consumer Use Tax

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

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