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