Kentucky Car Sales Tax Calculator

What you pay in tax when you buy a vehicle in Kentucky, from the statute and the revenue department.

Verified September 21, 2026 · statute and revenue department cross-checked

Vehicle price (USD) Trade-in value (USD)

Buying the car is only half the cost. You still owe an annual registration fee.

See Kentucky vehicle registration fees →

What to know about Kentucky

Kentucky has a floor. Even with a notarized affidavit showing what you really paid, the taxable amount cannot fall below 50 percent of the NADA trade-in difference. Without an affidavit, a used car is taxed on NADA average retail and a new car on 90 percent of MSRP. There is no local add-on. Trade-in credit does not apply to used vehicles bought out of state.

Sources

Statute: KRS 138.460

Kentucky Department of Revenue, Motor Vehicle Usage Tax
“It is levied at six percent ... provided that the selling price is not less than fifty percent (50%) of the difference between the Trade-in value of the motor vehicle offered for registration and the Trade-in value of any motor vehicle offered in trade.”

KRS 138.450
“"Total consideration given" shall not include: (a) Any amount allowed as a manufacturer or dealer rebate if the rebate is provided at the time of purchase”

Last verified: September 21, 2026.

Estimates only. Your dealer or the state issues the final bill, and exemptions can change what you owe. This page does not collect or store anything you enter.