What is the Kentucky state lodging tax rate?

6% statewide. Kentucky charges a 6% state sales tax plus a 1% statewide transient room tax dedicated to tourism marketing. Cities and counties layer their own transient room tax — Louisville is at 8.5% local for a combined effective rate around 15.5%. The 2019 Kentucky tax modernization law explicitly added 'short-term rentals' to the lodging tax base. Airbnb and Vrbo collect the state and statewide transient portions; local taxes are usually still the host's filing obligation. Ky. Rev. Stat. 91A.390 governs the convention and tourism tax.

Do Airbnb and Vrbo collect Kentucky lodging tax for me?

Airbnb and Vrbo collect and remit lodging tax in most cases. Local taxes may still be your responsibility — verify with the state DOR.

What's the local add-on range in Kentucky?

Cities and counties may add 0% to 8.5% on top of the state rate.

Where can I see the official source?

The authoritative source is the Kentucky Department of Revenue at https://revenue.ky.gov/. Always verify before filing.

When was this last verified?

Last verified 2026-05-05. Lodging-tax rates are reviewed annually; entries older than 12 months are flagged for re-verification.

Kentucky Lodging Tax Calculator

How Kentucky lodging tax works

Kentucky stacks three layers on every short-term stay: a 6% state sales tax, a 1% statewide transient room tax, and a local transient room tax of up to 8.5% added by cities and counties. Combined effective rates land between 7% and 15.5% depending on jurisdiction. Top STR markets:

Lexington-Fayette — 6% state + 1% statewide + 8.5% local = 15.5% effective. Keeneland and University of Kentucky basketball drive demand.
Louisville-Jefferson County — 6% state + 1% statewide + 8.5% local = 15.5%. Kentucky Derby week is the single biggest STR event in the country by ADR spike.
Cave City / Mammoth Cave — 6% state + 1% statewide + 3% local = 10%. Cabin and campground-adjacent rentals.
Bowling Green — 6% state + 1% statewide + 4% local = 11%.
Northern Kentucky (Covington, Newport) — 6% state + 1% statewide + 4% local = 11%. Cincinnati-overflow market.

Stays of 30 consecutive nights or longer are exempt from all three lodging tax layers in Kentucky.

Platform collection

Airbnb and Vrbo both collect and remit the 6% state sales tax and the 1% statewide transient room tax in Kentucky under marketplace facilitator rules. Local transient room taxes are inconsistently collected — Airbnb has agreements with Lexington-Fayette and Louisville to collect the full local tax, but smaller cities often require host self-filing.

What this means in practice

State + statewide layers — handled by both platforms. No filings.
Local layer — Lexington and Louisville hosts on Airbnb are typically fully covered. Cave City, Bowling Green, and smaller markets usually require you to register with the local Tourism Commission and file monthly.
Derby Week pricing — note that ADR can spike 5–10x for the first weekend of May; tax dollars scale proportionally.
30+ night stays — exempt from all three layers; structure the booking that way at the start.

How to use the calculator above

Enter your booking subtotal (nightly × nights + cleaning fee, before tax).
Enter the local add-on rate. Lexington and Louisville are 8.5%; Cave City 3%; Bowling Green 4%; Northern KY 4%.
The result shows the effective rate, total tax, and what the guest sees.

Source: Kentucky Department of Revenue. Verified 2026-05-11. Not tax advice — confirm with a CPA or your local Tourism Commission before filing.