Kentucky used car dealer paperwork and sales tax guide
How Kentucky sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Kentucky dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Kentucky: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Kentucky deal.
Kentucky tax and fees at a glance
| Item | Kentucky |
|---|---|
| State tax | 6% state rate |
| Who pays it | Buyer, at titling or registration |
| Trade-in | Reduces the tax |
| Documentary fee | Part of the taxable amount |
| Service contract | Not taxed |
| Starting title fee in DMS Apex | $9 |
How Kentucky sales tax is worked out
Kentucky: the buyer pays the 6% motor vehicle usage tax (minimum $6) to the county clerk at titling, so the amount shown is an estimate and is not added to what is due now. On a used vehicle the trade-in allowance counts only when it is attested in the notarized affidavit, and the clerk may use the book value if the price is low. A service contract and manufacturer or dealer rebates are left out. Type your title fee in the Title Fee box. The used-vehicle trade-in credit has a floor (not less than half the difference between the reference values of the two vehicles, KRS 138.450): confirm with the county clerk.
Kentucky paperwork a dealer prints
DMS Apex prints these documents for a Kentucky deal, all in black and white:
- Buyer's Order
- Buyers Guide
Step-by-step form guides
- TC 96-182 Application for Kentucky Certificate of Title or Registration: how to fill it out
This is general information, not legal or tax advice. Kentucky rules change: confirm current requirements with the Kentucky Transportation Cabinet or the Kentucky Department of Revenue.
Common questions
How much is sales tax on a used car in Kentucky?
6% state rate. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Kentucky Transportation Cabinet or the Kentucky Department of Revenue.
Does a trade-in lower the tax in Kentucky?
Yes. In Kentucky the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Kentucky?
Yes. In DMS Apex the documentary fee is part of the taxable amount for Kentucky.
Does DMS Apex print Kentucky dealer forms?
Yes. It prints Buyer's Order, Buyers Guide.
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