Questions & Answers

What is consumer use tax?

Pursuant to KRS 139.330, a 6 percent use tax is due if you make out-of-state purchases for storage, use or other consumption in Kentucky and did not pay at least 6 percent state sales tax to the seller at the time of purchase. For example, if you order from catalogs, make purchases through the Internet, or shop outside Kentucky for items such as clothing, shoes, jewelry, cleaning supplies, furniture, computer equipment, software, office supplies, books, souvenirs, exercise equipment or subscribe to magazines, you may owe use tax to Kentucky.

It is important to remember that use tax applies only to items purchased outside Kentucky, including another country, which would have been taxed if purchased in Kentucky.

For your convenience, a Use Tax Calculation Worksheet and Optional Use Tax Table are provided below. The Optional Use Tax Table is designed for those purchases of less than $1,000. If you made untaxed out-of-state purchases in amounts under $1,000, but do not have records readily available that show the amount of those purchases, you may use the Optional Use Tax Table below to estimate the compensating use tax based on your Kentucky Adjusted Gross Income (KYAGI). All untaxed purchases in the amount of $1,000 or greater must be accounted for on an actual basis using the Use Tax Calculation Worksheet. Failure to timely report may result in assessment of penalty and interest in addition to the tax amount due.

Optional Use Tax Table
KY AGI* Use Tax Liability
$0 - $10,000 $4
$10,001 - $20,000 $12
$20,001 - $30,000 $20
$30,001 - $40,000 $28
$40,001 - $50,000 $36
$50,001 - $75,000 $50
$75,001 - $100,000 $70
Above $100,000 Multiply AGI by 0.08% (0.0008)
* AGI from Line 9 on KY Form 740 or KY Form 740-NP or Line 1 on KY Form 740-EZ

Use Tax Calculation Worksheet
1. Purchases of $0 to $1,000 x 6 percent (.06) OR Use Tax Table Amount $_________
2. Purchases of $1,000 or more x 6 percent (.06) $_________
3. Total Use Tax Due (add lines 1 and 2) $_________
Call 502-564-5170 for assistance.

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