Kentucky Contractor Sales Tax 2026

Kentucky sales tax rate for contractors

• Combined rate: 6% (no local sales tax)
• Construction labor taxable: NO - real property labor is exempt
• Tax authority: Kentucky Department of Revenue

How Kentucky treats contractor labor

Real property labor exempt. 2018 HB 487 expanded taxable services but construction labor remained exempt.

Kentucky-specific rules

Kentucky construction labor exempt. Subcontractor 120-day notice is mandatory; missing it voids lien rights.

Kentucky mechanics lien rights

Beyond sales tax, Kentucky contractor billing must respect the mechanics lien deadline of 6 months from last work. Preliminary notice: Subs must give pre-lien notice within 120 days from last work.

Kentucky contractor licensing

Kentucky Department of Housing, Buildings and Construction - required for licensed work. $50 (residential); HVAC, electrical, plumbing $30-300. Board: https://dhbc.ky.gov.

Automate Kentucky sales tax with KaamCam

KaamCam applies the Kentucky sales tax rate, labor tax treatment, and contractor license number to every invoice automatically. Stop tracking tax rules manually. $12 per seat per month. Start a free 14-day trial.

Kentucky contractor resources by trade

• Kentucky HVAC Cost
• Kentucky Plumbing Cost
• Kentucky Electrical Cost
• Kentucky Roofing Cost
• Kentucky Painting Cost
• Kentucky Concrete Cost