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Kentucky Guide

How to Gift a Car in Kentucky

Last verified: November 2026 against Kentucky Transportation Cabinet and DOR sources

Gifts between certain close family members who live in Kentucky are exempt from the 6% motor vehicle usage tax. Other gifts are taxed on the vehicle’s average trade-in value.

Here is how to transfer the car.

Step by step

  1. 1

    Check that the exemption applies

    Transfers between spouses, parents and children (including stepparents and stepchildren), and grandparents and grandchildren are exempt when both are Kentucky residents (KRS 138.470). Complete Form 71A101 for the exemption.

    Other gifts are taxed at 6% of the average trade-in value in the reference manual (KRS 138.450).

  2. 2

    Sign the title over and notarize it

    The giver signs the title over to you, and the signatures must be notarized.

  3. 3

    Get Kentucky insurance

    Bring proof of Kentucky insurance with an issue date within 45 days.

  4. 4

    Go to the county clerk within 15 days

    Bring the title, the affidavit, the insurance, and your Kentucky driver’s license, ID card, or Social Security card.

  5. 5

    Pay the fees

    Pay the $9 title fee and the $20.50 registration, plus the usage tax if the exemption does not apply.

What to bring

  • The title, signed over to you with notarized signatures
  • Form 71A101, for an exempt family transfer
  • Proof of Kentucky insurance issued within 45 days
  • Your Kentucky driver’s license, ID card, or Social Security card
  • Payment for the $9 title and $20.50 registration

Estimate your Kentucky costs

For an exempt family transfer, enter $0 as the price to see the title and registration fees. For other gifts, enter the average trade-in value.

Open the full Kentucky calculator

Vehicle & Transaction Details

Enter purchase information to calculate true out-of-pocket costs in Kentucky.

51 Jurisdictions Active
Kentucky 6% tax base
$
7 years old
Kentucky tag options
1-Year Term (Kentucky registers for one year)
EV surcharge rules
Lien fee: $12.00
Kentucky: Deductible
$

Kentucky Notice: Kentucky taxes the price on the notarized affidavit (Form TC 96-182) less the seller's trade-in allowance, but not below 50% of the trade-in value of the vehicle you buy minus the trade-in value of the vehicle traded.

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Estimated taxes & fees

Estimated taxes & fees

Jurisdiction

Kentucky

Estimated taxes & fees
$929.50

Sales/Excise Tax + Title Certificate + Tags & Registration

Itemized Line ItemEstimated Fee
1Vehicle Sales / Excise Tax (6%)

Calculated at 6% on taxable base of $15,000

$900.00
2Certificate of Title Fee

Standard state title certificate issuance

$9.00
3Lien / Security Filing Fee

Unfinanced / cash purchase (waived $0.00)

$0.00
4Registration & Tag Fee

Base license plates & tags

$20.50

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Kentucky rates last verified: November 2026
Official Notice & Statutory Disclaimers

Estimates only, not tax or legal advice. Verify with your county clerk or the Kentucky Transportation Cabinet.

The electric vehicle fee shown is the $120 statutory base. The Department of Revenue adjusts it each year, and the adjusted 2026 amount is not published on the Cabinet's fee pages.

The usage tax cannot fall below the floor set from the reference manual values, which the estimate does not apply.

Yearly vehicle property tax and the optional $10 wildlife contribution are not included.

County & Local Tax Note: Kentucky charges a 6% motor vehicle usage tax statewide (KRS 138.460). Counties and cities add no sales tax to a vehicle purchase.

Frequently Asked Questions

Common questions about this Kentucky Transportation Cabinet and DOR process.

No. Siblings are not on the list; the exemption covers spouses, parents and children (including step-relations), and grandparents and grandchildren.

Sources

Last verified: November 2026. Rules change, so check with Kentucky Transportation Cabinet and DOR before you go.

More Kentucky guides

How to Title a Private Car Sale in KentuckyThe notarized title, 15 days, the 6% usage tax, and the fees.Titling a Car in Kentucky After Moving From Another StateInsurance, the sheriff’s inspection, the usage tax credit, and the clerk.
Kentucky Private Party Car Tax Calculator