Credit card processing and merchant services in Louisville, KY
Louisville merchants charge Kentucky's flat 6% sales tax with no local add-on. The local tax arrives later: Louisville Metro's occupational license tax, 2.2% on business net profits.
A Louisville register needs one sales tax rate: Kentucky's 6%. The Department of Revenue says Kentucky has no local sales and use taxes, so Louisville Metro adds nothing at checkout, and an order you ship to a customer elsewhere in the state carries the same 6%. Set it once on the terminal and once in your online store.
The local tax shows up in your books instead. Every person and business working for profit in Louisville Metro owes an annual occupational license tax to the Louisville Metro Revenue Commission. On net profit from business activity in Louisville Metro it adds up to 2.2%: 1.25% for Metro, 0.20% for transit and 0.75% for the school boards. Wages earned there are taxed too. The Commission's 2026 regulations set out the details, including how wages are handled.
The Census Bureau's July 2025 estimate for Louisville/Jefferson County metro government was 641,962 residents. With one flat sales tax rate for in-store and online sales across that whole market, the tax side of a checkout is easy. Card costs are the number that actually moves from month to month.
Surcharges are legal under Kentucky law as far as we can find, within Visa's 3% and Mastercard's 4% caps, and never on debit. A 3% surcharge on a $150 order is $4.50. Before you post the sign, compare that with what you'd save by paying less for acceptance.
We set up counter terminals and online payments with AVS, CVV and velocity-rule fraud screening, priced on interchange-plus with no long-term contract. A free statement review shows what your current processor charges you for each kind of card.
Rules that matter in Louisville
Louisville Metro occupational license tax
Every person and business entity engaged in a business, trade, occupation or profession for profit in Louisville Metro must pay an annual occupational license tax to the Louisville Metro Revenue Commission. On net profit from business activity conducted in Louisville Metro, the tax is 1.25%, plus a 0.20% transit tax and a 0.75% school boards tax, for 2.2% in total.
Wages and other compensation paid to employees are taxed as well. The Commission's OL-3 instructions cover the annual occupational license return.
Sources: Louisville Metro Revenue Commission, Occupational license tax regulations (2026) (PDF); Louisville Metro Revenue Commission, OL-3 tax form instructions
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Common questions
Does Louisville add its own sales tax?
No. The Kentucky Department of Revenue says there are no local sales and use taxes in Kentucky, so a Louisville sale carries the same 6% as a sale anywhere else in the state. Taxable orders you ship to Kentucky customers use that rate too, which keeps online checkout setup simple.
What is the Louisville Metro occupational license tax?
An annual tax that every person and business working for profit in Louisville Metro owes to the Louisville Metro Revenue Commission. On net profit from business activity in Louisville Metro it totals 2.2%: 1.25% Metro, 0.20% transit and 0.75% for the school boards. Wages are taxed under the same tax, and the Commission publishes the return instructions.
Can a Louisville restaurant add a credit card surcharge?
Yes, as far as state law goes; we haven't found a Kentucky statute on surcharges. Visa caps them at 3% or your merchant discount rate and Mastercard at 4% or your average effective rate, with notice at the door, at checkout and on the receipt. Debit cards can't be surcharged. Our restaurants page covers terminals for the table and the bar.
Can one processor handle my Louisville store and my website?
Yes. We set up countertop and wireless terminals for the store and hosted checkout or gateway integration for the website, all on interchange-plus pricing. Fraud screening with AVS, CVV checks and velocity rules comes with our online payments setup, and sales tax is the easy part at 6% statewide.
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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