Usage Tax
A 6% motor vehicle usage tax is levied upon the "retail price" of vehicles transferred in Kentucky. On used vehicles, the usage tax is 6% of the current average retail as listed in the NDA Used Car Guide or 6% of the total consideration paid. On used vehicles, the total consideration paid is the total given less any trade-in allowance, if applicable. Trade-in allowance applies to used vehicles only and the vehicle being traded must be previously registered in Kentucky.
Usage Tax Exemptions are on the following types of Kentucky transfers:
- Charitable/Education Organization
- Corporation/Subsidiary (LLC)
- Dealer Registration
- Husband/Wife
- Military Exempt
- Parent/Child
- State Government
- US Government
- Corporation/Proprietorship (LLC)
- Court Order/Will
- Grandparent/Grandchild
- Local Government
- Name Change
- Repossession
- Stepparent/Stepchild
Fees:
- Kentucky Title Fee $6
- Notary Fee: $2
- The title is mailed to the owner by the Kentucky Transportation Cabinet, Title Branch, Frankfort, KY 40601. Expect the title in about 4 to 6 weeks.
- Kentucky Speed Title $25
- A speed title is mailed to the owner the following business day by the Kentucky Transportation Cabinet, Title Branch, Frankfort, KY 40601.
- Transfer Fee $4.
- Registration Fee - Registration fees are $1 per month plus $3 Clerk fee.
- The yearly registration fee is $15.
- Usage Tax- 6% of "retail price": See Usage Tax.
- Title Lien Statement recording fee- $21