In Kentucky, there are several categories of income and assets that are exempt from taxation. These include: Social Security benefits; retirement income from pensions, annuities, and IRAs; disability income; unemployment benefits; workers’ compensation; gifts and inheritances; and the proceeds from life insurance policies. Additionally, certain types of property are not subject to property taxes, such as owner-occupied homes with a value below a certain threshold, religious property, and property owned by the government. By understanding these exemptions, taxpayers can ensure that they are only paying their fair share of taxes and taking advantage of the deductions and exemptions available to them under Kentucky law.
Food and Groceries
Groceries, including food for human consumption, are not subject to sales tax in Kentucky. This exemption also applies to items such as:
- Food purchased at grocery stores, farmers markets, and convenience stores
- Non-alcoholic beverages, such as milk, juice, and water
- Candy, snacks, and other non-prepared foods
However, there are some exceptions to this exemption:
- Restaurant meals
- Alcoholic beverages
- Prepared foods, such as sandwiches, salads, and hot meals
What is Not Taxed in **Prescription Drugs**
Prescription drugs are an essential part of many people’s lives. They can help manage chronic conditions, prevent disease, and improve quality of life. However, the cost of prescription drugs can be high. In the United States, the average annual cost of prescription drugs is over $1,200.
Fortunately, there are a number of ways to save money on prescription drugs. One way is to use a prescription drug discount card. These cards can be obtained from a variety of sources, including pharmacies, insurance companies, and employers. Discount cards typically offer a percentage discount on the cost of prescription drugs.
Another way to save money on prescription drugs is to buy generic drugs. Generic drugs are medications that are similar to brand-name drugs, but they are typically much cheaper. Generic drugs are just as effective as brand-name drugs, but they do not have the same marketing costs.
Finally, you can also save money on prescription drugs by using a mail-order pharmacy. Mail-order pharmacies typically offer lower prices than traditional pharmacies. However, mail-order pharmacies may not be convenient for everyone.
In addition to the methods listed above, there are a number of other ways to save money on prescription drugs. By taking advantage of these tips, you can make your prescription drugs more affordable.
**The following are some examples of prescription drugs that are not taxed:**
– Insulin
– EpiPens
– Inhalers
– nebulizers
– CPAP machines
– Diabetes test strips
– Blood pressure monitors
**The following is a table summarizing the information above:**
| **Type of Prescription Drug** | **Taxed?** |
|—|—|
| Insulin | No |
| EpiPens | No |
| Inhalers | No |
| Nebulizers | No |
| CPAP machines | No |
| Diabetes test strips | No |
| Blood pressure monitors | No |
Utility Bills
In Kentucky, certain utility bills are not subject to sales tax. These bills include:
- Electricity
- Natural gas
- Water
- Sewer
- Telephone
- Internet
However, some services provided by utility companies may be subject to sales tax. For example, if a utility company provides cable television service, that service is subject to sales tax.
Clothing and Footwear
In Kentucky, clothing and footwear are generally exempt from the state sales tax. This includes all items of clothing, footwear, and accessories, whether new or used.
However, there are a few exceptions to this rule. Clothing and footwear that are designed primarily for athletic or recreational use are not exempt from the sales tax. This includes items such as:
- Athletic shoes
- Cleats
- Golf shoes
- Skates
- Snowshoes
In addition, clothing and footwear that are made from fur are also not exempt from the sales tax. This includes items such as:
- Fur coats
- Fur hats
- Fur gloves
The following table provides a summary of the sales tax exemptions for clothing and footwear in Kentucky:
| Item | Sales Tax Exemption |
|---|---|
| Clothing | Yes |
| Footwear | Yes |
| Athletic or recreational clothing and footwear | No |
| Clothing and footwear made from fur | No |
Well, y’all, there you have it – a quick tour of what’s not taxed in the Bluegrass State. Of course, this is just a general overview, and there may be some exceptions or specific situations that affect your circumstances. If you have any questions, don’t hesitate to reach out to a tax professional for guidance.
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