KY · 2026 rates · statute-cited
Kentucky RV rental
sales tax, every line.
Marketplace facilitator law collects state + local sales tax automatically. Effective combined rate: 7%. Marketplace facilitator law: PickRV collects + remits, you don't file separately.
The rate stack
WORKED EXAMPLE — 5 NIGHTS @ $91/NT
Optional coverage (carrier-quoted at checkout) + cleaning fee + service charge calculated separately. See full trip-cost calculator.
Host side · Kentucky
Hosting in Kentucky — the legal floor and the practical ceiling
Every PickRV host listing in Kentucky signs into these statutory minimums. Numbers below are primary-sourced; statute citations are linked at the bottom of the section.
Income tax on net
4.00% flat
Applied to Schedule E net after maintenance + depreciation + insurance deductions.
Liability insurance floor
$25K / $50K / $25K
Commercial-rental status also requires full collision + comprehensive coverage.
Deposit hold
Up to 60 days after return
Ky. Rev. Stat. §383.580 (security deposit return timing analog)
Sales-tax permit
Required from day one
Kentucky requires a Sales and Use Tax Permit via the Department of Revenue (Form 10A100) before collecting on rentals. Kentucky imposes a SEPARATE 6% Motor Vehicle Rental Usage Tax (Ky. Rev. Stat. §138.463) on short-term motor vehicle rentals — in addition to standard 6% sales tax = 12% combined on every rental. Kentucky moved to a 4% flat individual income tax for tax year 2024 (HB 1 of 2023), continuing a stepped-down reduction from 5%. Statewide uniform 6% sales tax — no local additions for sales tax (cities tax other things like restaurants).
Worked example · Kentucky host at $48,000 net
Net rental income
$48,000
State income tax
$1,920
After-state
$46,080
Band: Flat 4.00% state income tax. Effective rate 4.00% on Schedule E net (after maintenance, insurance, depreciation, and commission paid to PickRV). Federal tax + self-employment tax apply separately and are not modeled here.
Interactive · Kentucky host projection
What your monthly net could look like
Move the sliders to your nightly rate and projected booked nights. The math chain uses real PickRV fees and Kentucky's actual income tax band. All numbers are projections, not guarantees.
$60 - $450 range
1 - 28 (default 10 — 60% occupancy on 200 listed days)
Commission
+15% markup
PickRV adds a 15% commission ON TOP of your base, baked into the price renters see — nothing is deducted from your base. Renters also pay a transparent 10% service fee shown before checkout (never a deduction from your payout).
Your gross (base take-home)
$175/night base × 10 nights
$1,750
PickRV commission (added on top — $0 from you)
$0 — the 15% commission is added ON TOP of your base for the renter, never withheld from you
$0
Insurance + maintenance reserve (10%)
Conservative reserve; actual varies by rig age + miles
−$175
Net before state tax
$1,575
Kentucky income tax (4.00%)
Flat 4.00% state income tax
−$63
Take-home (after Kentucky tax)
≈ $18,144/year before federal + self-employment tax
$1,512
Numbers are projections based on the values you set + the published PickRV fee schedule (PickRV adds a 15% commission on top of your base, baked into the price renters see; renters pay a transparent 10% service fee shown before checkout) + Kentucky's 2026 income tax brackets cited above. Federal income tax + self-employment tax (15.3% Social Security + Medicare on Schedule SE) apply on top and are not modeled here. Pre-LLC: zero verified bookings; this is a planning tool, not a revenue commitment. Projections are illustrative, not guarantees — the full set of assumptions is listed above.
What hosts get caught by
Kentucky stacks a SEPARATE 6% Motor Vehicle Rental Usage Tax on top of the 6% sales tax = 12% combined on every RV rental
Ky. Rev. Stat. §138.463 imposes a 6% Motor Vehicle Rental Usage Tax on short-term motor vehicle rentals, in addition to the standard 6% sales tax = 12% combined on RV bookings in Kentucky. This is one of the higher combined vehicle rental tax loads in the South. Hosts marketing KY rentals (Mammoth Cave, Red River Gorge, Daniel Boone National Forest) must show 12% tax-inclusive pricing — the gap between sticker price and checkout total is enough to trigger KRS §367.170 unfair-practice scrutiny.
Primary source ↗(opens in new tab)Mammoth Cave National Park cave tour reservations open 6 months out and routinely sell out summer + October weekends in <60 minutes
Mammoth Cave NPS-led tours (Historic, Domes & Dripstones, Frozen Niagara, Wild Cave) open on Recreation.gov 6 months in advance. Summer Saturday + October leaf-season tours sell out within 30-60 minutes. Walk-up tickets at the visitor center are extremely rare June-October. Hosts marketing Mammoth Cave trips must brief renters to book tours 6 months ahead — showing up without a reservation = no cave access.
Primary source ↗(opens in new tab)Primary sources · 4 citationsShow
- Kentucky Dept of Revenue — Individual Income Tax ↗
Flat 4.0% state income tax for tax year 2024 (HB 1 of 2023), down from 4.5% in 2023 and 5.0% in 2022. Continued 0.5%/yr reductions contingent on revenue triggers.
- Kentucky Dept of Revenue — Sales and Use Tax ↗
Uniform 6% state sales and use tax statewide; no local sales tax additions. Rental of tangible personal property taxable.
- Kentucky DOR — Motor Vehicle Usage Tax ↗
Separate 6% Motor Vehicle Usage Tax on rentals under 30 days per Ky. Rev. Stat. §138.463, in addition to standard sales tax = 12% combined.
- Kentucky Transportation Cabinet — Motor Vehicle Registration ↗
Recreational vehicle registration $21-$95/yr by class. Commercial vehicle registration $100-$1,200/yr by GVWR. Plus annual ad valorem property tax on vehicle value (~$300-$1,200/yr on a $50K motorhome at typical county levy).
Last verified: 2026-06-04. State law changes at budget cycle (typically Jan 1 / Jul 1). PickRV refreshes this dataset annually. Not legal or tax advice — consult a state-licensed CPA before high-volume operation.
Frequently asked
Do I owe Kentucky sales tax on an RV rental?+
Yes. Kentucky taxes RV rentals as either tangible-property sales (most states) or accommodation services. The combined effective rate is ~7%. PickRV collects and remits via the marketplace facilitator law, so you don't file separately.
What's the marketplace facilitator law in Kentucky?+
Kentucky's marketplace facilitator law (effective post-Wayfair) requires platforms like PickRV to collect and remit sales tax on behalf of owners and renters. State Department of Revenue, Marketplace Facilitator Act.
Are there any per-day surcharges on Kentucky RV rentals?+
No per-day flat surcharge. Standard sales tax + local option only.
Can I get the tax refunded if I cancel?+
Yes. Per PickRV's cancellation policy (default flexible: full refund up to 48 hours before pickup), the entire tax-inclusive total auto-refunds. Owner-set strict cancellation may retain a portion of subtotal but state-collected tax is generally refunded per each state's rules if booking is voided.
Kentucky rules · last verified 2026-05-10
- · Tax: 8.50%
- · Min driver age: 21+ standard, 25+ Class A
- · Gravel roads: Allowed — disclosure required
- · Generator quiet: 22:00-07:00
Ready to roll?
Kentucky is waiting.
Flat 15% commission · 48h free cancel. Owners + companies + tour operators all welcome.