Kentucky Resale Certificate Guide 2026: How to Get Yours

Kentucky has a strong manufacturing base, a thriving bourbon and horse racing industry, and a growing logistics sector anchored by UPS's Worldport hub in Louisville. The state imposes a flat 6% sales tax with no local sales taxes, making it one of the simplest states for sales tax compliance. Kentucky is also a member of the Streamlined Sales Tax (SST) agreement. This guide covers everything about Form 51A105, Kentucky's resale certificate, for 2026.

Kentucky Sales Tax Basics

State Rate

The Kentucky state sales tax rate is 6%. This flat rate applies statewide with no local add-ons. Cities, counties, and other local jurisdictions in Kentucky do not have the authority to impose additional sales taxes. This uniformity makes tax calculations predictable and compliance straightforward.

Use Tax

Kentucky imposes a 6% use tax on goods purchased from out-of-state vendors when sales tax is not collected. The use tax ensures out-of-state purchases are taxed at the same rate as in-state ones. Items purchased for resale are exempt from use tax.

What Is Taxable in Kentucky?

• Most tangible personal property is taxable
• Groceries (unprepared food) are exempt from sales tax
• Prescription drugs are exempt
• Clothing is fully taxable (no clothing exemption)
• Many services are taxable, including admissions, landscaping, janitorial services, small animal veterinary services, and certain industrial and utility services
• Digital property is taxable (downloads, streaming, online access)
• Prepared food is taxable at the full 6% rate

Kentucky expanded its sales tax base in recent years to include more services and digital goods. Review the full list to understand what your business needs to collect on.

What Form Do You Need?

Kentucky uses Form 51A105, the Resale Certificate. This form is issued by the Kentucky Department of Revenue (KY DOR).

About Form 51A105

Form 51A105 is a straightforward resale certificate specifically designed for purchases of tangible personal property and digital property for resale. The form identifies the buyer, the seller, and the nature of the goods being purchased.

Key fields include:

• Purchaser's name, address, and phone number
• Kentucky sales tax permit number
• Type of business
• Description of tangible personal property or digital property purchased for resale
• Purchaser's signature and date

Where to Get the Form

Form 51A105 is available as a free download from the KY DOR website. The form is a single page.

Who Needs a Kentucky Resale Certificate?

Any business purchasing tangible personal property or digital property for resale needs a Kentucky resale certificate. This includes:

Retailers buying inventory for sale in physical stores, online marketplaces, flea markets, or trade shows.

Wholesalers and distributors purchasing goods from manufacturers or importers for redistribution.

Online sellers registered in Kentucky who buy inventory for resale through Amazon, eBay, Etsy, Shopify, or other platforms.

Manufacturers purchasing raw materials, components, and packaging that become part of a finished product for sale.

Restaurants and food businesses buying food ingredients that will be prepared and sold as meals.

Digital goods sellers purchasing digital products (software, media, e-books) for resale or redistribution.

Who Does NOT Qualify

• Consumers purchasing for personal use
• Businesses buying supplies, tools, or equipment for internal operations
• Contractors purchasing materials for installation into real property

How to Apply for a Kentucky Resale Certificate

Step 1: Register for a Kentucky Sales Tax Permit

You need a Kentucky sales and use tax permit before you can issue a valid Form 51A105. Registration is handled through the KY DOR.

What you need to register:

• Federal EIN or SSN (for sole proprietors)
• Business legal name and DBA
• Business address
• Type of business entity
• Description of products or services sold
• Expected start date of sales activity

Registration is free. Apply online through Kentucky's One Stop Business Portal or the KY DOR website.

Processing time: Online applications are typically processed within 5 to 10 business days.

Step 2: Complete Form 51A105

Download the form and fill in your business information. Enter your Kentucky sales tax permit number and describe the products you intend to purchase for resale.

Step 3: Provide the Certificate to Your Suppliers

Give the completed 51A105 to each vendor you want to buy from tax-free. The vendor keeps the certificate on file.

Want help with the process? We handle everything from registration to certificate completion.

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Multi-State Considerations

Kentucky is a member of the Streamlined Sales Tax (SST) agreement, which benefits multi-state businesses significantly.

SST Membership

As an SST member, Kentucky accepts the Streamlined Sales and Use Tax Agreement Certificate of Exemption. Businesses registered through the SST system can use the SST certificate when purchasing goods in Kentucky for resale.

This reduces paperwork for businesses operating in multiple SST states. One certificate format works everywhere in the SST system.

Out-of-State Sellers

Kentucky's economic nexus threshold is $100,000 in gross receipts from sales to Kentucky buyers, or 200 transactions with Kentucky buyers, in the current or prior calendar year. Meeting either threshold requires registration.

Marketplace Facilitator Rules

Kentucky requires marketplace facilitators to collect and remit sales tax on behalf of third-party sellers when the facilitator meets the economic nexus threshold. If you sell exclusively through a marketplace, the marketplace handles your Kentucky obligations. Direct sales require your own permit.

For more on multi-state compliance, see our multi-state resale certificate guide.

Kentucky-Specific Rules You Should Know

Flat Rate Advantage

Kentucky's flat 6% statewide rate with no local taxes is a genuine advantage for businesses. You never need to look up local rates, configure location-based tax tables, or worry about collecting the wrong amount. Every transaction in Kentucky uses the same 6% rate.

For businesses that also sell in states with complex local tax structures, this simplicity is a welcome contrast.

Expanded Service Taxation

Kentucky has been expanding its sales tax to include more services. Taxable services currently include:

• Landscaping and lawn care
• Janitorial and cleaning services
• Small animal veterinary services
• Personal fitness training
• Cosmetic surgery
• Laundry and dry cleaning
• Limousine services
• Admissions to entertainment, amusement, and recreation

If your business resells any of these services, review the resale exemption rules for services with the KY DOR.

Digital Property

Kentucky taxes digital property, which includes:

• Downloaded music, movies, and television shows
• E-books and audiobooks
• Software (downloaded or accessed remotely)
• Streaming and subscription services
• Online access to databases

If you purchase digital property for resale, you can claim the exemption using Form 51A105. Describe the digital property on the certificate.

Manufacturing Exemptions

Kentucky exempts machinery used directly in manufacturing or industrial processing, as well as raw materials that become part of the finished product (under the resale exemption). Energy and fuels used in manufacturing also receive preferential tax treatment.

Bourbon and Distillery Industry

Kentucky is the heart of American bourbon production. Distilleries purchasing raw materials (grain, barrels, bottles, labels) for products they sell qualify for the resale exemption. Equipment used directly in production may qualify for the manufacturing exemption.

Audit Practices

The KY DOR audits businesses on a rotating basis, typically covering a 3 to 4 year period. Having properly completed Form 51A105 or SST certificates on file for all tax-exempt purchases is your primary audit defense.

Common Mistakes with Kentucky Resale Certificates

Mistake 1: Using the Certificate for Business Equipment

Buying office furniture, computers, vehicles, or cleaning supplies with a resale certificate is the most common error. These are business-use items, not resale inventory.

Mistake 2: Not Tracking Digital Property Purchases

With Kentucky taxing digital property, businesses sometimes forget to either collect tax on digital sales or claim the resale exemption on digital purchases. Both sides of the transaction matter.

Mistake 3: Forgetting Use Tax on Out-of-State Purchases

When you buy business-use items (not resale inventory) from an out-of-state vendor who does not collect Kentucky tax, you owe use tax. Self-report this on your Kentucky sales and use tax return.

Mistake 4: Not Updating Certificates When Information Changes

If your business name, address, or permit number changes, provide updated certificates to all suppliers. Outdated certificates can create problems during audits.

How Much Can You Save?

Kentucky's flat 6% rate makes savings easy to calculate.

Use our savings calculator to calculate your exact savings.

Kentucky Resale Certificate FAQs

Q: Does the Kentucky resale certificate expire? A: Form 51A105 does not have a printed expiration date. The certificate is valid as long as your sales tax permit is active. Sellers may request updated certificates periodically.

Q: Is there a fee for a Kentucky sales tax permit? A: No. Kentucky does not charge a fee for sales tax registration.

Q: Can I use the SST certificate instead of Form 51A105? A: Yes. Kentucky is an SST member state and accepts the SST certificate of exemption. Either form is valid.

Q: Do local taxes apply in Kentucky? A: No. Kentucky has no local sales taxes. The rate is a flat 6% statewide.

Q: Are services taxable in Kentucky? A: Many services are taxable in Kentucky, including landscaping, janitorial, pet grooming, and admissions. Check the full list on the KY DOR website.

Q: Are digital goods taxable? A: Yes. Kentucky taxes digital property including downloads, streaming, and online access to databases.

Get Started with Your Kentucky Resale Certificate

Kentucky's flat 6% rate, no local taxes, and SST membership make it one of the most straightforward states for resale certificate compliance. Get registered, complete your Form 51A105, and start saving.

• Expert registration guidance
• Help completing Form 51A105 or SST certificate
• Ongoing compliance support

Get Your Resale Certificate -->

For more details on Kentucky's requirements, visit our Kentucky state page.

Kentucky's simplicity is its strength. A single flat rate statewide, SST membership, and a clean one-page resale certificate form make compliance as easy as it gets. Get your permit, document your exemptions, and keep records organized.

Related Articles

• What Is a Resale Certificate? - Start with the fundamentals if you are new to resale certificates.
• Resale Certificate for Amazon Sellers - Kentucky sellers on Amazon have specific considerations.
• Multi-State Resale Certificate Guide - Selling across state lines? Learn about multi-jurisdiction certificates.