Kentucky Statewide Rule
Kentucky Statewide 1% Transient Room Tax
Key Facts
- State Tax Rate
- 1% of gross rent
- Statute
- KRS 142.400
- Threshold
- Under 30 days
- Facilitator Collection
- Required since 2023
- Collected By
- Department of Revenue
Summary
Kentucky imposes a statewide 1% transient room tax on all short-term lodging rentals under 30 days, including Airbnb, VRBO, hotels, campgrounds, and RV parks. Hosts and facilitators must collect and remit this tax universally across the state.
142.400 Statewide transient room tax - Rate - Exclusions from tax. (1) As used in this section: (a) "Person" has the same meaning as in KRS 91A.345; and (b) "Rent" has the same meaning as in KRS 91A.345. (2) A statewide transient room tax shall be imposed at a rate of one percent (1%) of the rent for every occupancy of any suite, room, rooms, cabins, lodgings, campsites, or other accommodations charged by any hotel, motel, inn, tourist camp, tourist cabin, campgrounds, recreational vehicle parks, or other place in which accommodations are regularly furnished to transients for a 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 for consideration.
Full Breakdown
Under KRS 142.400, Kentucky imposes a 1% statewide transient room tax on the rent for every occupancy of accommodations rented for fewer than 30 consecutive days. The tax applies to hotels, motels, inns, tourist cabins, campgrounds, RV parks, and short-term rentals. Effective January 1, 2023, House Bill 8 requires accommodation facilitators (such as Airbnb and VRBO) to collect and remit the tax on the total charges. Hosts who rent exclusively through facilitators do not need to register, but hosts receiving direct payment must register with the Department of Revenue. This 1% tax is in addition to any local transient room tax.
Violations & Penalties
Failure to collect or remit the statewide transient tax may result in penalties, interest, and assessments by the Kentucky Department of Revenue under tax enforcement statutes.
Frequently Asked Questions
Does Airbnb collect the Kentucky state transient tax automatically?
Does this replace local occupancy taxes?
What if I rent for more than 30 days?
Sources
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