Official fees
Kentucky car sales tax chart
Standard rate
6%
no county or city add-on - one flat state rate
New vehicle base
consideration − trade-in
or 90% MSRP without a bill of sale
Used vehicle base
max(price, NADA retail)
minus trade-in credit if applicable
Trade-in credit
Full value
only if the traded vehicle is KY-titled/registered
Qualifying family transfer
$0
spouse, parent/child, grandparent/grandchild - KRS 138.470(6)
New KY resident (tax paid elsewhere)
Credit up to 6%
documented prior payment required
Figures verified July 2026 against official sources (listed below). Always confirm the final amount with your county clerk's office (Kentucky Transportation Cabinet) - counties can add small local fees.
- Usage tax rate
- 6% flat
- Used vehicles
- Higher of price or NADA retail
- New vehicles
- Consideration or 90% MSRP
- Trade-in credit
- Only if KY-titled
- Qualifying family gift
- Fully exempt
Overview
That NADA comparison is the quirk that catches people off guard. Buy a used car for less than it books for and Kentucky's county clerk can - and routinely does - tax the NADA number instead of your receipt. A solid, notarized bill of sale showing a legitimately low price (condition issues, private deal, etc.) is your best defense; without one, book value wins by default.
This calculator applies Kentucky's real rule set: the NADA-vs-price comparison for used vehicles, the KY-titled trade-in credit, and the new-resident tax credit for anyone who already paid tax elsewhere.
Same state, other costs
More Kentucky vehicle costs
Common questions
Kentucky car sales tax FAQ
- Why is my Kentucky usage tax bill higher than 6% of what I paid?
- Because on used vehicles, Kentucky taxes the higher of your price or the NADA Used Car Guide's average retail value - not the clean-trade or wholesale figure. A car that sold for $7,000 privately but books at $10,500 retail gets taxed on $10,500 unless your bill of sale is solid enough for the clerk to accept it.
- Can I get the clerk to use my actual price instead of NADA value?
- Bring a notarized bill of sale or the Affidavit of Total Consideration (Form 71A100 / TC96-182) showing the real price. Clerks generally accept it unless the price looks unreasonably low relative to the vehicle's condition and value - there's no fixed percentage floor like some states use, but an unsupported number invites the NADA default.
- Does trading in my old car lower the tax on a new one?
- Yes - but only if the vehicle you're trading in is already titled or registered in Kentucky. Trade in an out-of-state car you just drove in and Kentucky won't credit its value against the purchase; the taxable consideration is the full price.
- Is a car gifted to me by my parents taxed at all?
- No usage tax at all, if the vehicle was previously titled or registered in Kentucky and both of you are Kentucky residents - KRS 138.470(6) fully exempts transfers between spouses, parents and children, stepparents and stepchildren, and grandparents and grandchildren. File the Motor Vehicle Usage Tax Multi-Purpose Form (71A101) to claim it.
- What about a car gifted by a sibling, aunt, or friend?
- Not exempt. Kentucky's family exemption is narrow - spouse, parent/child, and grandparent/grandchild only. A transfer from a sibling, cousin, aunt, uncle, or friend is taxed like any other sale: 6% of the higher of stated price or NADA retail value.
- I paid sales tax in another state before moving to Kentucky. Do I pay again?
- You get a credit for the tax you already paid, up to Kentucky's 6%, if you can document it and the other state offers similar reciprocity. If you paid less than 6% elsewhere, Kentucky collects the difference on the vehicle's average NADA trade-in value.
Receipts
Official sources
Every number on this page comes from these documents - check them yourself.
