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.
01 - Official fees
Kentucky car sales tax fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| 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 June 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.
03 - Same state, other costs
More Kentucky vehicle costs
04 - 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.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.