Kentucky's 6% Usage Tax on Used Cars, Explained
Kentucky charges a 6% motor vehicle usage tax when a vehicle changes owners or is registered in Kentucky for the first time. Your county clerk collects it, and you can't get your title or tags until it's paid.
What the 6% is figured on
- With a notarized sale price: the seller writes the sale price on the application or affidavit (TC 96-182), signs it, and has it notarized. Then the tax is 6% of that price.
- There's a floor: the taxable value can't be less than half of the vehicle's clean trade-in value (the Pulaski and Barren County Clerks both say this).
- Without a notarized price: the tax is figured on the NADA retail value (Jefferson County Clerk).
- "Gift" or $0: Barren County says a $0 sale price is taxed on the NADA retail value, and a "gift" on the NADA trade-in value.
Bought it out of state?
If you paid a similar tax in a state that gives Kentucky the same credit, state law (KRS 138.460) gives you a credit for that tax. See the out-of-state guide.
Do the math yourself
The tax is 6% of the taxable value. Your clerk makes the final call, so ask them if you're not sure which value applies.
Common questions
What is the Kentucky usage tax rate on a car?
6%, under KRS 138.460. It's collected by the county clerk.
Is the tax based on what I paid?
It can be, if the sale price is written on the TC 96-182 and notarized. The taxable value can't be less than half of the clean trade-in value.
What if the sale price isn't notarized?
The Jefferson County Clerk says the tax is then figured on the NADA retail value.
Related guides
- How to Transfer a Car Title in Kentucky
- Registering an Out-of-State Car in Kentucky
- Selling your car in Elizabethtown? Get an estimate