Last checked Nov 10, 2026
Buying a car in Kentucky
The tax you will pay, whether your trade-in lowers it, what the dealer may charge for paperwork, and where to title and register. Taken from official Kentucky sources.
- State tax on vehicles
- 6%
- Trade-in lowers tax
- Yes
- Doc fee limit
- Check with the state
- Deadline to title or register
- 15 days
motor vehicle usage tax
details below
Sales tax on a car in Kentucky
Kentucky charges a state motor vehicle usage tax of 6% on vehicle purchases.
There are no local sales and use taxes in Kentucky.
The usage tax is paid to the county clerk when the vehicle is titled or first registered, based on the price in a notarized affidavit of total consideration. Without the affidavit, a new vehicle is taxed on 90% of the manufacturer's suggested retail price and a used vehicle on its reference manual retail value.
Does a trade-in lower the tax?
A trade-in allowance has been granted on new vehicle purchases since July 1, 2014. For used vehicles the taxed price may not be less than 50% of the difference between the trade-in values of the vehicle bought and the vehicle traded.
Example, state tax only. On a $30,000 car with a $10,000 trade-in, the taxable amount is $20,000, so the state tax is about $1,200. Without the trade-in it would be $1,800. Local taxes and fees are extra.
Dealer doc fees in Kentucky
We could not confirm from an official source whether the state limits the documentation fee. Ask the dealer for the fee in writing and compare it with other dealers.
Whatever the rule, the fee is part of your out-the-door price. Ask for it in the written quote and negotiate the total, not the line. See dealer fees explained.
Title and registration
Titles and registrations are handled by the Kentucky Transportation Cabinet and county clerks. When a vehicle is sold, the title must be transferred to the new owner within 15 days at the county clerk's office.
Also worth knowing
- A county clerk cannot register a vehicle or issue plates until the motor vehicle usage tax is paid.
- Proof of Kentucky insurance is required to apply for a title.
Sources
- Kentucky Department of Revenue: Motor Vehicle Usage Tax (revenue.ky.gov)
- Kentucky Revised Statutes 138.460: Motor vehicle usage tax (apps.legislature.ky.gov)
- Kentucky Department of Revenue: Sales and Use Tax (revenue.ky.gov)
- Kentucky Transportation Cabinet: Vehicle Titling (drive.ky.gov)
Last checked Nov 10, 2026; next review by Feb 10, 2027. This page explains how the rules generally work and is not tax or legal advice. Rules change, so confirm with the state. Report an error.
Concierge
Rather not do this part yourself?
Tell us the car you want. A person finds it, checks it, negotiates the out-the-door price in writing, and lines up the paperwork. You approve every step.