Kentucky Car Sales Tax Calculator (2026)

• Kentucky charges a 6% Motor Vehicle Usage Tax, collected by the county clerk when ownership transfers, rather than a sales tax at the dealership.
• Trade-in allowances have reduced the taxable price on new vehicles since July 1, 2014.
• Without a notarized affidavit of total consideration, a new vehicle is taxed on 90% of MSRP.
• A manufacturer or dealer rebate applied at the time of purchase is excluded from total consideration under KRS 138.450.

Motor Vehicle Usage Tax

6%

Local tax

None on vehicles

Trade-in

Full credit: reduces the taxable priceIn effect since Jul 1, 2014

Manufacturer rebate

Not taxed: the rebate lowers the taxable price

Figured with Kentucky's rules for a buyer from a dealer.

• Used car, no trade-in$1,080

  $18,000 price. Taxed on $18,000.

• New car with a trade-in$1,500

  $35,000 price, $10,000 trade-in. Taxed on $25,000. The trade-in saves $600.

• New car with a trade-in and a rebate$1,680

  $45,000 price, $15,000 trade-in, $2,000 rebate. Taxed on $28,000. The trade-in saves $900. The rebate saves $120.

These examples treat the agreed price as the taxable price. Where a state uses a book value instead, the tax can differ.

Kentucky has no local tax on vehicles, so buyers in Louisville/Jefferson County, Lexington-Fayette and Bowling Green and everywhere else in Kentucky are figured at the same state rate: $1,800 on a new $30,000 car. Whether the tax applies to your purchase still depends on the rules above.

The calculator covers a car bought from a dealer. These rules apply to other ways of buying or bringing a car to Kentucky.

Buying from a private seller

A used car bought from a private seller is taxed at 6% of the price stated in a notarized affidavit signed by buyer and seller, but that price cannot be less than 50% of the difference between the reference-manual trade-in values of the car bought and any car traded. Without the affidavit, tax is figured on the car's retail value in the reference manual. (apps.legislature.ky.gov, checked Nov 10, 2026)

A car received as a gift

A car titled in Kentucky on or after July 1, 2005, or previously registered in Kentucky, is exempt from the usage tax when transferred between spouses, parent and child, stepparent and stepchild, or grandparent and grandchild. Other gifts are taxed at 6% of the car's trade-in value in the reference manual. (apps.legislature.ky.gov, checked Nov 10, 2026)

Moving to Kentucky with your car

A new resident's used car is taxed at 6% of its trade-in value in the reference manual, or on $100 if the car is too old to be listed. Tax paid to the previous state is credited if that state levied a substantially identical tax and grants a similar credit for Kentucky tax. (revenue.ky.gov, checked Nov 10, 2026)

Buying outside Kentucky

When a car registered in another state is titled or registered in Kentucky for the first time, Kentucky credits the tax paid to that state against the 6% usage tax. No credit is given if that state does not grant a similar credit for Kentucky tax. (apps.legislature.ky.gov, checked Nov 10, 2026)

Active-duty military

A car sold by a Kentucky-licensed dealer to a member of the Armed Forces on duty in Kentucky under U.S. government orders is exempt from the usage tax. National Guard members and reservists qualify only while on federal orders. (apps.legislature.ky.gov, checked Nov 10, 2026)

Deadline to pay

A person who buys a car or brings one from another state must title it with the county clerk within 15 days. The usage tax is paid to the clerk at titling. (laruecountyclerk.ky.gov, checked Nov 10, 2026)

Kentucky is tied for 24th lowest of all 50 states and the District of Columbia for tax on a $30,000 car. See all states.

Tax on a $30,000 car before trade-in, in nearby states. You generally pay tax based on where you register the car.

• Virginia$1,245
• Missouri$1,568 – $3,446
• Kentucky$1,800
• West Virginia$1,800
• Illinois$1,875 – $2,625
• Ohio$1,950 – $2,475
• Indiana$2,100
• Tennessee$2,176 – $2,188

• All car calculators
• Sales tax calculators by state
• Car sales tax by state
• Trade-in tax credit by state
• Car cost by state
• Kentucky out-the-door price
• Auto loan calculator

• Illinois car sales tax
• Indiana car sales tax
• Missouri car sales tax
• Ohio car sales tax
• Tennessee car sales tax
• Virginia car sales tax
• West Virginia car sales tax