Kentucky Statewide 1% Transient Room Tax

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.

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.