KENTUCKY CAR SALES TAX · 2026
Kentucky car sales tax calculator
Kentucky charges 6% motor vehicle usage tax on a car's price less any trade-in. On a $35,000 car with a $10,000 trade-in, bought from a dealer, the tax is $1,500.00.
Tax on this purchase
- Tax due
- $1,500.00
- Usage tax
- $1,500.00
- Taxed amount
- $25,000.00
- Trade-in subtracted
- $10,000.00
Kentucky car sales tax by price
A new car from a dealer.
| Price | No trade-in | $10,000 trade-in |
|---|---|---|
| $20,000 | $1,200.00 | $600.00 |
| $35,000 | $2,100.00 | $1,500.00 |
| $50,000 | $3,000.00 | $2,400.00 |
| $75,000 | $4,500.00 | $3,900.00 |
Kentucky car sales tax questions
How much is car sales tax in Kentucky?
Kentucky charges 6% motor vehicle usage tax on a car's price less any trade-in. On a $35,000 car with a $10,000 trade-in, bought from a dealer, the tax is $1,500.00.
Does a trade-in lower Kentucky's car sales tax?
Yes. Kentucky taxes the price less the trade-in. A $10,000 trade-in on a $35,000 car from a dealer saves $600.00.
Is a manufacturer rebate taxed in Kentucky?
No. A manufacturer rebate applied at the sale lowers the taxed price in Kentucky: a $2,000 rebate saves $120.00.
Is a private car sale taxed in Kentucky?
Yes. Kentucky taxes a private sale at the same rate, and a trade-in still counts.
What the calculator leaves out
- On a used vehicle Kentucky taxes at least half the difference between the two vehicles' book values; the calculator uses the price.
Title, registration and plate fees, dealer fees, and any yearly tax on owning the vehicle are not included.