Kenton County, Kentucky

Covington, KY — Business & Occupational License Guide

Covington has one of the highest OLT rates in NKY and its own online filing portal. Here's everything you need — rates, office location, MUNIRevs setup, and the local rules that trip up out-of-city businesses.

OLT Rate2.5%
Registration Fee$50 (one-time)
Minimum Annual Tax$25/year
Annual Return DueApr 15
Quarterly W/H DueApr 30 · Jul 31 · Oct 31 · Jan 31
Online FilingYes — MUNIRevs

Revenue Division — Office Information

City of Covington Revenue Division

20 W Pike St, Suite 204
Covington, KY 41011
Phone(859) 292-2180
HoursMon–Fri, 8:00 AM – 4:30 PM
Walk-inYes — no appointment required
Online portalMUNIRevs — covingtonky.munirevs.com
Online filingRegistration, returns, and payments
ParkingPaid metered parking on Pike St; city garage nearby
Building access: 20 W Pike St is in downtown Covington, two blocks from the Roebling Bridge. Suite 204 is on the second floor. The building has an elevator. Street parking is metered; the closest garage is the Madison Ave Parking Garage one block east.

20 W Pike St, Suite 204
Covington, KY 41011

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Rates & Fee Schedule

ItemRate / AmountNotes
Business registration fee$50One-time only — not annual
Net profit tax rate2.5%Applied to net profit earned within Covington city limits
Employee wage withholding2.5%Applied to gross wages earned within Covington city limits
Minimum annual tax$25/yearOwed even if net profit is below $1,000
Late filing penalty5% per monthMax 25% of tax due
Late payment interest12% per yearAccrues from original due date
Extension availableYesRequest before Apr 15; payment still due Apr 15
Kenton County OLT is separate: Kenton County levies its own OLT at 0.7097%, filed separately with the Kenton County Fiscal Court (303 Court St, Covington, KY 41011 — same building as the courthouse). You owe both Covington's 2.5% and Kenton County's 0.7097% if you operate within Covington city limits. They do not offset each other.

Filing Online via MUNIRevs

Covington uses the MUNIRevs platform for all OLT filings — registration, quarterly withholding, and annual net profit returns. This is one of the few NKY cities with a fully functional online portal for all filing types, not just renewals.

  1. Create your MUNIRevs account
    Go to covingtonky.munirevs.com and click "Sign Up." Use your business email — this becomes your login for all future filings. You'll need your EIN and business address to complete setup.
  2. Register your business
    Once logged in, select "New Business Registration." You'll pay the one-time $50 registration fee online by ACH or credit card. Credit card payments may incur a processing fee — ACH is free.
  3. Set up withholding account (if you have employees)
    After registration, add a withholding account in MUNIRevs. Each quarter you'll log in, enter total wages paid to employees for work performed in Covington, and remit the 2.5% withholding by the deadline.
  4. File your annual net profit return
    Each April, log into MUNIRevs, select your net profit account, and file the annual return. The system walks you through the calculation. You can upload your federal Schedule C or corporate return to support the filing.
First time using MUNIRevs? Call the Revenue Division at (859) 292-2180 before your first filing. They can walk you through the portal setup and confirm your account is linked correctly. Worth the 10-minute call to avoid a misfiled return.

How to Register a Business in Covington, KY

  1. Form your business entity with Kentucky SOS
    Register at sos.ky.gov. Fee: $40 (LLC), $50 (corporation). Sole proprietors filing under their own name can skip this step.
  2. Obtain your federal EIN
    Free and instant at irs.gov/ein. Required for Covington registration.
  3. Create a MUNIRevs account and register
    Go to covingtonky.munirevs.com. Complete the business registration form and pay the $50 one-time fee. Keep your MUNIRevs account number — you'll use it every year.
  4. Register separately with Kenton County
    File a separate OLT registration with the Kenton County Fiscal Court (303 Court St, Covington, KY 41011). The county's 0.7097% OLT is administered separately from the city's.
  5. Set up quarterly withholding if applicable
    If any employees perform work within Covington city limits, add a withholding account in MUNIRevs and remit 2.5% of those wages quarterly.
  6. File annual net profit return by April 15
    Log into MUNIRevs each April and file your net profit return. Pay any balance due by April 15. The $25 minimum applies even if profit is under $1,000.

Covington-Specific Rules & Local Quirks

  • The $50 registration fee is one-time, not annual. Many businesses coming from other states or jurisdictions assume business licenses renew annually for a fee. Covington's $50 is paid once when you first register. After that, there's no annual registration renewal fee — only the tax itself.
  • The $25 minimum tax applies even if you lose money. Unlike Florence (no minimum), Covington charges a $25 minimum annual OLT even if your net profit was zero or negative. If you operated at all during the year, you owe at least $25.
  • Remote employees working from home outside Covington. If your office is in Covington but an employee works remotely from their home in Florence or Cincinnati, you do NOT withhold Covington OLT on those remote wages. Withholding applies only to wages for work physically performed within Covington. Keep records of remote vs. in-office days.
  • Covington is actively redeveloping — new businesses get flagged. The Revenue Division tracks new business activity in the MainStrasse and Pike St corridor. If you open a new commercial location in Covington and don't register within 30–60 days, you may receive a compliance notice. Registration first is the right move.
  • Out-of-city businesses working in Covington must register. An Erlanger-based contractor whose crew works on a Covington job site for three months owes Covington OLT withholding on those wages and may owe net profit tax. Many NKY businesses doing project work in Covington don't realize they need to register. The city has cross-referenced permit data to identify these situations.
  • Kenton County and Covington have separate online systems. MUNIRevs is for Covington only. Kenton County uses a different system (or paper forms). Don't assume that filing in MUNIRevs satisfies your county obligation — it doesn't.

Frequently Asked Questions — Covington, KY

I'm an NKY contractor and my crew will be working in Covington for 6 weeks. Do I need to register?

Yes. Any business with employees performing work within Covington city limits is required to register with the Revenue Division and withhold the 2.5% OLT on wages earned there. A 6-week job generates meaningful withholding liability. Register before the work starts (or as soon as possible after), remit the withholding quarterly, and file a net profit return for the year. Covington has cross-referenced building permit data with registered businesses and does follow up on compliance gaps.

My business is in Covington but I work from a client's office in Cincinnati most of the week. What do I owe Covington?

You owe Covington OLT only on net profit and wages attributable to work performed within Covington city limits. If you work in Cincinnati four days a week and your Covington office one day, you'd allocate roughly 20% of your income to Covington. Keep a log. You'd also owe Cincinnati's 2.1% on the Cincinnati-sourced income. This is a common situation for solo professionals and consultants in the NKY/Cincinnati cross-border market.

What happens if I forget to pay the $25 minimum?

The $25 minimum is treated like any other tax liability. If you file your return showing zero profit but don't include the $25 minimum payment, the city will send a balance due notice with interest accruing from April 15. It's a small amount but the penalty and interest cycle can make it annoying. Just include the $25 with your return filing in MUNIRevs — it takes 30 seconds.

Can I pay the registration fee by check?

Covington has moved most transactions to MUNIRevs for online payment. If you prefer to pay by check, contact the Revenue Division at (859) 292-2180 before your first visit — they can confirm whether in-person check payment is still available for the registration fee, as procedures have changed with the MUNIRevs rollout.

Is Covington's OLT deductible on my federal taxes?

Generally yes — state and local business taxes paid are deductible as ordinary business expenses on Schedule C (sole proprietors) or the corporate return. This isn't tax advice — confirm with your CPA. But in general, the OLT you pay to Covington reduces your federal taxable income, which partially offsets the cost.