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Kentucky

State Shipping Laws:

kentucky

Last Updated June 23, 2025

Direct Shipping Allowed

Permit

DTC Permit

Required

Yes

Fee

$100

Expiration

1 yr from issue date

Sales Tax

Sales Tax Required

State

6%

Local

No

Tax on Shipping

Yes

Excise Tax

Excise & Wholesale Sales Tax Required

Excise Tax

$0.50/gal

Wholesale Tax

10% of wholesale price*

*If a wholesale price is not readily available, the direct shipper licensee shall calculate the wholesale cost to be 70% of the retail price of the wine.

Volume Limit

Limits per Winery

Month

10 cases per person

 

 

 

Reporting

Reporting Requirements

Sales Tax

Monthly

Excise Tax

Monthly by the 20th

Direct Shipment

Quarterly by the 20th

Record Retention

At least 4 years

Product Requirements

Brand Label Registration

Required

No, effective March 12, 2021

Additional Information


On March 12, 2021, the Governor signed HB 415 – effective immediately, the new law provides for the explicit authorization of the use of fulfillment houses for DTC, removal of the requirement for brand registration for DTC products, and a simplification of the application process.

Kentucky’s law to allow for the direct-to-consumer (DTC) shipping of wine, beer and spirits by producers became effective on July 15, 2020.  Upon approval of the regulations on Dec. 14, 2020, ABC approved applicants may remit the $100 annual fee and receive a license electronically.

  • Registration with the Kentucky Secretary of State’s office is not a requirement for wholly out-of-state applicants for direct shipper licenses.
  • Register with the Department of Revenue to collect and remit sales tax.  Note that there is no minimum threshold for Kentucky’s Corporate Income tax or the Limited Liability Entity Tax (LLET). If a company has any amount of sales, property, or payroll in the state of Kentucky, then that company may owe Kentucky’s Corporation Income and LLET.
  • After receiving a direct shipper license from ABC, direct shippers must also contact the Kentucky Department of Revenue, Excise Tax Section to set up a direct shipper alcohol revenue account for remittance of excise and wholesale sales tax. (Since Kentucky currently has an 10% “wholesale tax” on wines sold through the three-tier system, DTC shippers will collect and pay a wholesale sales tax which is to be calculated based on 70% of the retail price.)
  • A copy of the quarterly direct shipment report must be submitted to the Kentucky ABC via email or U.S. mail.

The direct shipper licensee shall notify the consumer placing the order that the shipment shall not be left unless the recipient of the shipment provides a valid identification document at the time verifying that the recipient is at least twenty-one (21) years of age. All alcoholic beverage containers shipped to the consumer shall be conspicuously labeled with the words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY”.

Compliance Alerts


Kentucky Improves DTC Law

 

View All Compliance Alerts

Contact Information

Kentucky Department of Alcoholic Beverage Control
500 Mero Street, 2NE33
Frankfort, KY 40601
Phone: (502) 564-4850
Fax: (502) 564-1442

Kentucky Department of Revenue
Excise Tax Section
​Station 62
PO Box 1303
Frankfort, KY 40602-1303
Phone: (502) 564-6823

 

 

More DTC Compliance Resources

Direct Shipping Table

Better understand who ships where with our state-by-state list of off-site shipping provisions and carriers.

Direct Shipping Laws for Wineries

Learn more about direct-to-consumer shipping laws and access useful direct shipping tools.

This information is intended for winegrower licensees only. All information above is provided as an informational aid and is not legal advice. Data may be out-of-date or incomplete. Please consult a lawyer before taking any action.