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Kentucky car sales tax at a glance
| Kentucky | |
|---|---|
| Tax | motor vehicle usage tax |
| State rate | 6% |
| Average with local taxes (2026 (Tax Foundation midyear, July 1)) | 6% |
| Counties and cities add tax | No |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Its own rule (see leasing below) |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Kentucky sales tax on a car
Multiply the taxable price by the rate. In Kentucky the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 6% = $1,500 at the state rate.
6% usage tax collected by the county clerk at titling instead of sales tax (KRS 138.460). Manufacturer/dealer rebates applied at purchase are excluded from total consideration. No local add-on.
Trade-ins
Used vehicles: retail price is total consideration excluding the trade-in allowance (notarized affidavit), with a floor of 50% of the reference-manual value difference (KRS 138.450(16)). New vehicles: retail price is 'total consideration given' under KRS 138.4603, which (per the 2010/2014 law) deducts the trade-in allowance.
Leasing a car in Kentucky
Kentucky: the lessor registers the vehicle and owes the 6% usage tax, either on the retail price at registration (usually passed into the lease) or, under a U-Drive-It permit, on the gross lease charges. The calculator taxes the price at signing, the nearest fit; check the lease contract. The lease calculator uses Kentucky's method when you pick the state.
Dealer doc fees
No cap found.