What is Kentucky's car sales tax rate?

Kentucky charges a 6% motor vehicle usage tax on the retail price of a car, which matches its 6% general sales tax rate. Kentucky has no local (county or city) add-on sales tax, so the rate is a flat 6% statewide on vehicle purchases.

Does Kentucky give a trade-in credit on car tax?

Generally no. For standard dealer sales Kentucky applies the 6% usage tax to the full retail price without deducting a trade-in, unlike many neighboring states. Limited exceptions exist, so confirm with the county clerk before assuming a trade-in lowers your tax.

Is it called sales tax or usage tax in Kentucky?

Kentucky technically calls the levy on vehicle purchases a motor vehicle usage tax rather than a sales tax, but the effect is the same: 6% of the retail price is collected when you title and register the car at the county clerk's office.

Are there county or city car taxes in Kentucky?

No. Kentucky does not allow local-option sales taxes, so there is no county or city add-on to the vehicle tax. The rate is a uniform 6% statewide, which makes Kentucky's vehicle tax simpler to estimate than states with stacked local rates.

Does this include registration and title fees?

No. This tool computes only the 6% usage tax. Kentucky's flat annual registration fee, the one-time title fee, the county clerk fee, and the separate annual motor vehicle property tax are additional costs paid at the county clerk's office.

Kentucky Car Sales Tax Calculator

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Kentucky charges a 6% motor vehicle usage tax on the retail price of a vehicle — the same as its 6% general sales tax rate — with no local add-on. Unlike many states, Kentucky generally gives no trade-in credit on the usage tax for dealer sales, so the full price is typically taxed. This tool estimates the tax due at the county clerk.

How it works

The usage tax is a flat percentage of the taxable retail price:

taxable    = retail price − (optional trade-in if it qualifies)
usage tax  = taxable × 6%

Because Kentucky has no county or city vehicle tax, the rate stays 6% wherever you register. By default the trade-in credit is off, matching the standard dealer-sale rule; only enable it if your specific situation qualifies for a credit.

Example and notes

A 30,000 dollar car with no trade-in credit owes 30,000 × 0.06 = 1,800 dollars in usage tax. If a 10,000 dollar trade-in did qualify for a credit, the taxable base would drop to 20,000, lowering the tax to 1,200 dollars — but for most dealer sales Kentucky taxes the full price. This figure is usage tax only; add the flat registration fee, title fee, clerk fee, and annual property tax for the full DMV cost. Confirm trade-in eligibility with your county clerk.