Louisville Metro applies an 8.5% transient room tax on hotel and short-term-rental stays under 30 days. Combined with Kentucky's 6% sales tax, guests pay roughly 14.5% in lodging taxes total.
Under KRS 91A.390 and Louisville Metro Code, hotel and lodging operators collect an 8.5% transient room tax on rentals of 30 days or less. The tax funds Louisville Tourism (3%), Kentucky International Convention Center expansion (1.5%), KFC Yum! Center debt service, and general convention/tourism promotion. Kentucky additionally imposes 6% state sales tax on accommodations, bringing the typical guest charge to approximately 14.5%. Short-term rentals (Airbnb, VRBO) are obligated to collect both taxes; major platforms remit on hosts' behalf under voluntary agreements with the Department of Revenue.
Operators failing to collect or remit transient room tax face penalties of 10% per month plus interest, audit assessments, and possible business-license revocation by Louisville Metro Revenue Commission.
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See how Louisville's transient occupancy tax rules stack up against other locations.
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