Lexington, KY Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Base rate
- 4% (KRS 91A.390)
- Additional rates
- 2% + 2.5% (KRS 153.450)
- Combined rate
- 8.5% of rent
- Exemption
- Stays of 30+ consecutive days
- Due date
- 20th of month following collection
- Late penalty
- 4.5% per month plus 1% interest
Summary
Lexington-Fayette imposes a combined 8.5 percent transient room tax on hotels, motels, inns, campgrounds, RV parks and short-term rentals under Code of Ordinances Sec. 2-172. The tax stacks three separate levies authorized by KRS 91A.390 and KRS 153.450, and it explicitly reaches booking platforms that broker or coordinate the rental.
Pursuant to KRS 91A.390, there is hereby imposed a transient room tax at the rate of four (4) percent of the rent for every occupancy of a suite, room, rooms, cabins, lodgings, campsites, or other accommodations charged by any hotel, motel, inn, tourist camp, tourist cabin, campgrounds, recreational vehicle parks, or any other place in which accommodations are regularly furnished to transients for consideration or by any person that facilitates the rental of the accommodations by brokering, coordinating, or in any other way arranging for the rental of the accommodations... Pursuant to KRS 153.450, in addition to the four (4) percent transient room tax authorized by subsection (a), there is hereby imposed additional transient room tax at the rate of two (2) percent of the rent... Pursuant to KRS 153.450(3), in addition to the transient room taxes authorized by subsections (a) and (b) above, there is hereby imposed additional transient room tax at the rate of two and one-half (2½) percent of the rent... The transient room taxes established in this section shall not apply to rooms, lodgings, campsites, or accommodations supplied for a continuous period of thirty (30) days or more to a person.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Republication | Zoning Ordinance: Republication).
Full Breakdown
Section 2-172 layers three transient room taxes on every occupancy of a room, cabin, lodging, campsite or similar accommodation charged by a hotel, motel, inn, tourist camp, campgrounds, RV park, or any person who brokers, coordinates or otherwise arranges the rental. 390, collected and enforced by the commissioner of finance. 450 is dedicated to retiring bonds and covering operating costs for the Lexington Center Corporation. 5 percent rate. The tax does not apply to stays of 30 consecutive days or more. Operators must remit the tax to the urban county government by the 20th day of the month following collection.
5 percent of the unpaid tax per calendar month or fraction, plus 1 percent interest per calendar month or fraction, with partial payments applied first to interest, then penalty, then tax. The section defines 'rent' to include any charges necessary to facilitate the rental, whether collected by the accommodation provider or by a person brokering the rental, and it expressly extends the tax to all short-term rentals as defined in Section 13-76 of the code.
Violations & Fines
Failure to remit by the 20th of the month following collection triggers a 4.5 percent monthly penalty on the unpaid tax plus 1 percent monthly interest, both compounding for each calendar month or fraction the tax remains outstanding. The commissioner of finance is charged with collection and enforcement, and partial payments are applied first to interest, then penalty, before reducing the tax owed.
Frequently Asked Questions
What is the total hotel tax rate in Lexington-Fayette?
Does the tax apply to Airbnb-style rentals?
Is there an exemption for long-term stays?
What happens if the tax is paid late?
Sources & Official References
Other rules in Lexington
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