How much is Kentucky's real estate transfer tax?

Kentucky charges a deed transfer tax of 50 cents for each 500 dollars of consideration, which works out to roughly 0.1% of the sale price. The rate is set by state law and is the same in every county across Kentucky.

Who pays the transfer tax in Kentucky?

By custom the seller (grantor) usually pays Kentucky's deed transfer tax, though the parties can negotiate who covers it in the purchase contract. The tax is collected by the county clerk when the deed is recorded.

Is the tax based on price or fair market value?

Kentucky bases the tax on the consideration, which is generally the actual sale price for an arm's-length sale. For a gift or below-market transfer, the county clerk uses the property's fair market value or the estimated value stated on the deed.

Are any transfers exempt in Kentucky?

Yes. Common exemptions include transfers between spouses, gifts, transfers to or from a government body, deeds correcting a prior deed, transfers in a divorce settlement, and certain transfers into or out of a trust or estate. Exempt deeds still record but owe no transfer tax.

Is this the same as recording fees?

No. The transfer tax is separate from the county clerk's deed recording fee, which is a flat per-document or per-page charge. This calculator estimates only the transfer tax; add the recording fee separately when budgeting closing costs.

Kentucky Real Estate Transfer Tax Calculator

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Kentucky charges a deed transfer tax of 50 cents per 500 dollars of consideration — about 0.1% of the sale price — collected by the county clerk when the deed is recorded. The rate is uniform statewide, and the seller customarily pays. This tool estimates the tax on a property transfer.

How it works

Kentucky rounds the consideration up to the next 500-dollar increment, then applies the per-increment rate:

increments  = ceil(price ÷ 500)
transfer tax = increments × $0.50

Equivalently this is price × 0.001 rounded to the increment. Because the rate is fixed by statute, the tax is easy to estimate from the sale price alone — no county or city add-on applies in Kentucky.

Example and notes

On a 300,000 dollar home, the consideration is 300,000 ÷ 500 = 600 increments, so the transfer tax is 600 × 0.50 = 300 dollars — about 0.1% of the price. A 250,000 dollar sale owes 500 × 0.50 = 250 dollars. Exempt transfers — between spouses, gifts, government deeds, corrective deeds, and divorce settlements — record without owing the tax. Add the county clerk’s separate recording fee when budgeting closing costs, and confirm exemptions with the county clerk.