Real Kentucky deals, worked out
Each example runs through the same calculator above, line by line, so you can check every number yourself.
1Louisville: new car with a trade-in
A buyer pays $34,000 and trades in $10,000. Since 2014 the trade-in lowers the usage tax on new cars too.
| Vehicle price | $34,000.00 |
| Motor vehicle usage tax (6%) on $24,000.00 | $1,440.00 |
| Title fee | $9.00 |
| Registration (base) | $11.50 |
| Out-the-door | $35,460.50 |
| Due after the $10,000 trade-in | $25,460.50 |
2New electric car
A buyer pays $41,000 for an electric car. The $120 ownership fee comes due every year at renewal.
| Vehicle price | $41,000.00 |
| Motor vehicle usage tax (6%) on $41,000.00 | $2,460.00 |
| Title fee | $9.00 |
| Registration (base) | $11.50 |
| Ownership (electric vehicle) | $120.00 |
| Out-the-door | $43,600.50 |
How the usage tax is figured
The usage tax is 6% of the retail price. For a trade-in to count it has to be titled or registered to you and presented at the sale; credit can't be added after the sale. On a used car the price comes from a notarized affidavit, but it can't be less than half of the difference between the trade-in values of the car you're buying and the car you trade.
Kentucky car tax at common prices
What a new gas car bought from a dealer comes to at four prices. The trade-in column shows how much a $10,000 trade-in changes the tax under Kentucky's rules.
| Price | Tax | Tax with $10,000 trade-in | Taxes + fees |
|---|---|---|---|
| $15,000 | $900.00 | $300.00 | $920.50 |
| $25,000 | $1,500.00 | $900.00 | $1,520.50 |
| $35,000 | $2,100.00 | $1,500.00 | $2,120.50 |
| $50,000 | $3,000.00 | $2,400.00 | $3,020.50 |
Registration and EV fees
The state's base registration fee is $11.50 a year; county clerks add their own fees, and your county collects yearly property tax on the car. Under 2022 HB 8, electric vehicles, counted to include plug-in hybrids, pay a $120 ownership fee and hybrids $60, at first registration and each renewal.
Kentucky taxes and fees at a glance
Officialfrom a state agency sourceEst.varies or not yet confirmed
| Item (louisville: new car with a trade-in) | Status | Amount |
|---|---|---|
| Motor vehicle usage tax (6%) | Official | $1,440.00 |
| Title fee | Estimate | $9.00 |
| Registration (base) (yearly) | Official | $11.50 |
| Total taxes and fees | $1,460.50 |
Kentucky car tax FAQ
What is Kentucky's car sales tax?
Kentucky charges a 6% motor vehicle usage tax instead of sales tax.
Does a trade-in lower Kentucky usage tax on a new car?
Yes, since July 1, 2014, as long as the trade is titled to you.
How much is the Kentucky EV fee?
$120 a year for electric cars and plug-in hybrids and $60 for hybrids.
Sources
We build every number from these agency pages. If something has changed, tell us and we'll fix it.