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Louisville, KY Hotels & Lodging: Transient Occupancy Tax (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Total combined tax rate
8.5% of rent
Base rate under KRS 91A.390
4.5%
Long-stay exemption
30+ consecutive days
Collecting agency
Metro Revenue Commission
Late payment penalty
5% + 12%/yr interest

Summary

Louisville Metro's combined transient room tax is 8.5% of rent, stacked from five separate levies, and applies to hotels, motels, campgrounds, and anyone who brokers short-term stays of 30 days or less.

(A) ...there is hereby imposed and levied a transient room tax of 3% 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... (B) ...an additional transient room tax of 1.5% of the rent for every occupancy of a suite, room, rooms, cabins, lodgings, campsites, or other accommodations...

Source: KRS 91A.390 — Transient Room TaxView official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-47: Supplement contains: Local legislation current through Ordinances passed by the Council and approved by the Mayor as of July 1, 2026).

Full Breakdown

Louisville Metro Code § 121.01 layers five transient room taxes: 3% under KRS 91A.390(1)(b), 1.5% under KRS 91A.390(4) (4.5% base), plus a 1% Kentucky Center for the Arts tax, a 2% convention-center bond tax, and a 1% convention-center renovation tax, 8.5% total. The tax reaches anyone who "facilitates the rental of the accommodations by brokering, coordinating or in any other way arranging" a stay, which covers Airbnb-style short-term rental bookings, not just traditional hotels. Stays of 30 consecutive days or more are exempt. Operators remit monthly to the Metro Revenue Commission by the last day of the following month.

Violations & Fines

Late payment draws a 5% penalty plus 12% annual interest; unfiled monthly returns add a further 5%/month penalty (capped at 25%). Knowingly filing a false or fraudulent return is a misdemeanor punishable by up to $100 and 50 days' imprisonment.

Frequently Asked Questions

Does Louisville's hotel tax apply to Airbnb and other short-term rentals?
Yes. § 121.01 taxes anyone who "facilitates the rental... by brokering, coordinating" a stay of 30 days or less, reaching short-term rental platforms and hosts, not just hotels.
Is there an exemption for extended stays?
Yes. § 121.01(F) exempts rooms, lodgings, or accommodations supplied for a continuous period of 30 days or more.

Sources & Official References

Other rules in Louisville

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