Sales tax on labor in Kentucky: not taxed on building repairs and new construction; repairs to things and installation depend on the job

Repairing a thing in Kentucky

It depends. If you sell a taxable part as part of the repair (for example a new drain pump for a washer), the labor to install it is taxed too. Repair labor on commercial refrigeration equipment, and on apparel, footwear, watches or jewelry, is taxed even with no part sold. If the parts and materials used in a repair are less than ten (10) percent of the total and no separate charge is made for them, the repairer is the consumer of the parts.

• “Charges for labor or services provided in installing or applying taxable tangible personal property, digital property, and services sold shall be subject to sales and use tax. ... Service, installation, or labor charges made to tangible personal property where there is no sale of taxable tangible personal property, digital property, or service shall not be subject to sales and use tax.” — 103 KAR 27:150 Repairers and reconditioners of tangible personal property, page date: eff. 2-1-2022
• “if the value of the parts and materials used in the repair or reconditioning of tangible personal property is less than ten (10) percent of the total value of the parts and materials, labor, and other services performed and if no separate charge is made for the property, the repairer or reconditioner shall be classified as the consumer of the property” — 103 KAR 27:150, page date: eff. 2-1-2022
• “(g) Landscaping services ... (h) Janitorial services, including but not limited to residential and commercial cleaning services, and carpet, upholstery, and window cleaning services ... (av) Labor and services to repair or maintain commercial refrigeration equipment and systems when no tangible personal property is sold in that transaction” — KRS 139.200 Imposition of sales tax, page date: Effective August 1, 2026

Repairing a home or building in Kentucky

Not taxed. Repairing a building or something built into it (the state's example: repairing a hot water heater installed in the house) is a construction contract. The contractor pays tax when buying materials and does not add sales tax to the customer's bill. Exception: landscaping is a taxed service, and so is labor to repair or maintain commercial refrigeration equipment when no part is sold.

• “"Construction contract" means a contract: (a) 1. For erecting, remodeling, or repairing a building or other structure on land; or 2. Replacing, furnishing, or installing materials or fixtures permanently to real property” — 103 KAR 26:070 Construction contractors, page date: eff. 11-1-2019
• “An entity that repairs a hot water heater that has been installed into real property is a contractor. The contractor shall pay sales or use tax on their purchase of the supplies, materials, fixtures, and any other tangible personal property that goes into the repair of the hot water heater. The contractor shall not bill sales tax as a separate charge to the customer on the cost of the repair.” — 103 KAR 26:070 Construction contractors, page date: eff. 11-1-2019
• “(g) Landscaping services ... (h) Janitorial services, including but not limited to residential and commercial cleaning services, and carpet, upholstery, and window cleaning services ... (av) Labor and services to repair or maintain commercial refrigeration equipment and systems when no tangible personal property is sold in that transaction” — KRS 139.200 Imposition of sales tax, page date: Effective August 1, 2026

Installation work in Kentucky

It depends. Permanently installing fixtures or materials into real property is a construction contract: no tax on the customer's bill, contractor pays tax on materials.

• “"Construction contract" means a contract: (a) 1. For erecting, remodeling, or repairing a building or other structure on land; or 2. Replacing, furnishing, or installing materials or fixtures permanently to real property” — 103 KAR 26:070 Construction contractors, page date: eff. 11-1-2019
• “A contractor that sells and delivers a freestanding refrigerator is operating as a contractor-retailer. ... The contractor-retailer shall charge sales tax on the retail sale of the refrigerator to the end customer along with any delivery or installation charges associated with the sale of the refrigerator.” — 103 KAR 26:070 Construction contractors, page date: eff. 11-1-2019

New construction in Kentucky

Not taxed. Erecting or remodeling a building is a construction contract. The contractor pays sales or use tax on materials and fixtures when buying them, whatever the contract type.

• “"Construction contract" means a contract: (a) 1. For erecting, remodeling, or repairing a building or other structure on land; or 2. Replacing, furnishing, or installing materials or fixtures permanently to real property” — 103 KAR 26:070 Construction contractors, page date: eff. 11-1-2019
• “All sales to contractors, subcontractors, builders, or owners of building materials, fixtures, and supplies which are to be incorporated or fabricated into any structure or improvement to real estate by the process of erecting, remodeling, replacing, or repairing the structure or improvement are subject to the sales or use tax at the time of sale to the contractor” — 103 KAR 26:070 Construction contractors, page date: eff. 11-1-2019

Listing labor separately on the bill in Kentucky

Does not change the answer. Labor tied to selling a taxable part is taxed whether or not it is listed separately.

• “Charges for labor or services provided in installing or applying taxable tangible personal property, digital property, and services sold shall be subject to sales and use tax. ... Service, installation, or labor charges made to tangible personal property where there is no sale of taxable tangible personal property, digital property, or service shall not be subject to sales and use tax.” — 103 KAR 27:150 Repairers and reconditioners of tangible personal property, page date: eff. 2-1-2022
• “if the value of the parts and materials used in the repair or reconditioning of tangible personal property is less than ten (10) percent of the total value of the parts and materials, labor, and other services performed and if no separate charge is made for the property, the repairer or reconditioner shall be classified as the consumer of the property” — 103 KAR 27:150, page date: eff. 2-1-2022

Materials on jobs in Kentucky

Contractor is the consumer: pays sales or use tax on materials and fixtures at purchase for any real-property job (time-and-materials). A repairer of things is a retailer of the parts it sells.

• “An entity that repairs a hot water heater that has been installed into real property is a contractor. The contractor shall pay sales or use tax on their purchase of the supplies, materials, fixtures, and any other tangible personal property that goes into the repair of the hot water heater. The contractor shall not bill sales tax as a separate charge to the customer on the cost of the repair.” — 103 KAR 26:070 Construction contractors, page date: eff. 11-1-2019
• “All sales to contractors, subcontractors, builders, or owners of building materials, fixtures, and supplies which are to be incorporated or fabricated into any structure or improvement to real estate by the process of erecting, remodeling, replacing, or repairing the structure or improvement are subject to the sales or use tax at the time of sale to the contractor” — 103 KAR 26:070 Construction contractors, page date: eff. 11-1-2019

Trade services Kentucky taxes

The services Kentucky's own pages name as taxed, each in the page's words:

• Landscaping, lawn care and snow removal: “Landscaping services, including but not limited to: 1. Lawn care and maintenance services; 2. Tree trimming, pruning, or removal services; 3. Landscape design and installation services; 4. Landscape care and maintenance services; and 5. Snow plowing or removal services”
• Cleaning (residential and commercial), carpet and window cleaning: “Janitorial services, including but not limited to residential and commercial cleaning services, and carpet, upholstery, and window cleaning services”
• Commercial refrigeration repair: “Labor and services to repair or maintain commercial refrigeration equipment and systems when no tangible personal property is sold in that transaction including service calls and trip charges”
• Interior decorating: “Interior decorating and design services”
• Security system monitoring: “Residential and nonresidential security system monitoring services, excluding separately stated onsite security guard services”
• Household moving: “Household moving services”

Where Kentucky's list of services comes from

• “(g) Landscaping services ... (h) Janitorial services, including but not limited to residential and commercial cleaning services, and carpet, upholstery, and window cleaning services ... (av) Labor and services to repair or maintain commercial refrigeration equipment and systems when no tangible personal property is sold in that transaction” — KRS 139.200 Imposition of sales tax, page date: Effective August 1, 2026

Check with the Kentucky Department of Revenue

Before you bill: check with the Kentucky Department of Revenue. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare Kentucky with every state's answer, or with its neighbours just below.

Next door to Kentucky

• Illinois: home repair not taxed, installation depends
• Indiana: home repair not taxed, installation depends
• Missouri: home repair not taxed, installation depends
• Ohio: home repair depends, installation depends
• Tennessee: home repair not taxed, installation depends
• Virginia: home repair not taxed, installation depends
• West Virginia: home repair taxed, installation depends

Official sources for Kentucky

• 103 KAR 27:150 — eff. 2-1-2022
• 103 KAR 26:070 Construction contractors — eff. 11-1-2019
• KRS 139.200 Imposition of sales tax — Effective August 1, 2026

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