What you will pay
The key numbers, as of November 2026.
As of November 2026, Kentucky charges a 6% motor vehicle usage tax instead of sales tax, collected by your county clerk when the vehicle is titled and registered. Tax is figured on the price after your trade-in, and a Nissan rebate applied to your purchase lowers it too. In Jefferson County, a title is $9 and a standard registration is $21. Kentucky also charges a yearly vehicle property tax with each registration renewal.
Price shown includes the fee
Every price on our website includes Nissan offers in effect and our $589 documentation fee. Tax, title and registration are added at purchase.
Live in Indiana or Ohio?
Kentucky usage tax is collected when a vehicle is registered in Kentucky. How it works
Questions?
Our sales team is here Monday through Saturday. Call (502) 610-0390.
How Kentucky taxes a vehicle sale
One statewide rate, collected by the county clerk.
| Component | Rate |
|---|---|
| Kentucky motor vehicle usage tax | 6% |
| Total | 6% |
On a new vehicle, the tax is figured on the total price you pay, shown on a notarized affidavit of total consideration that we complete with you. Without that affidavit, Kentucky uses 90% of the manufacturer's suggested retail price, and rebates cannot be subtracted.
On a used vehicle, the tax is figured on the affidavit price after your trade-in. The county clerk compares it with used vehicle guide values, and the taxed price cannot fall below 50% of the difference between the guide trade-in values of the vehicle you buy and the one you trade.
What is taxed, and what is not
How Kentucky treats each line on a buyer's order.
| Line item | How Kentucky treats it |
|---|---|
| Vehicle price | Taxed, along with equipment and accessories. |
| Your trade-in | Comes off the taxed price, on new and used vehicles. The trade-in must be a motor vehicle in your name and part of the same sale. |
| Nissan manufacturer rebate | Comes off the taxed price when it is applied to your purchase at the time of sale. |
| Dealer rebate or discount | Comes off the taxed price. |
| Service contracts and extended warranties | Not taxed. |
| Our documentation fee | Part of the total price on your buyer's order. Ours is $589. |
Title, registration and yearly taxes
Jefferson County Clerk fees.
| Charge | Amount |
|---|---|
| Title application | $9.00 |
| Standard plate registration | $21.00 |
| Lien filing (financed vehicles only) | $22.00 |
| Temporary tag | $3.00 |
| Electric vehicle fee, yearly (base, adjusted for inflation) | $120.00 |
We send your title and registration paperwork to the county clerk, and your temporary tag is good for 60 days from delivery.
Kentucky also charges a yearly property tax on vehicles, assessed as of January 1. The Department of Revenue mails a notice before your renewal month, and you pay it to your county clerk with your registration.
BUILD NOTE: Confirm the first-time registration amount (the clerk lists $21 as the standard renewal fee), the 2026 inflation-adjusted EV fee, and whether the temporary tag fee is charged on our deals.A worked example
A Jefferson County resident buys a new Nissan priced at $32,000 and trades in a paid-off vehicle worth $10,000.
| Line | Amount |
|---|---|
| Vehicle price, including our $589 documentation fee | $32,589.00 |
| Trade-in | −$10,000.00 |
| Usage tax, 6% of $22,589.00 | $1,355.34 |
| Title application | $9.00 |
| Standard registration | $21.00 |
| Total, before yearly property tax | $23,974.34 |
On our website, each vehicle's listed price already includes our documentation fee and the Nissan offers in effect. Unlike Ohio and Indiana, Kentucky lowers the tax when a rebate is applied to your purchase.
BUILD NOTE: F&I to sign off on this example, including whether the documentation fee belongs in the taxed amount.If you lease, or live in another state
Indiana and Ohio shoppers, start here.
If you lease
If you lease, our finance team will show the Kentucky tax on your lease worksheet before you sign. Our lease vs. finance guide covers the rest.
| Your situation | Kentucky usage tax |
|---|---|
| You will title and register the vehicle in Indiana, Ohio or another state | Kentucky usage tax is collected when a vehicle is registered in Kentucky. You pay your home state's tax when you title it there. |
| You are moving to Kentucky with a vehicle titled elsewhere | 6% usage tax at your first Kentucky registration, with a credit for tax paid to a state that gives Kentucky the same credit. |
Our fees, in full
Our documentation fee, plus a convenience fee only if you pay by credit card.
Our documentation fee in Jefferson County is $589, and it is already included in every price on our website. It does not include preparation of legal documents or documents tied to extending credit.
Accessories, protection products and prepaid maintenance like WylerCARE are your choice, and each one is listed separately on your buyer's order. Payments made by credit card carry a 3% merchant services convenience fee.
Questions, answered
Quick answers to the questions we hear most.
What is the tax on a car in Kentucky?
As of November 2026, Kentucky charges a 6% motor vehicle usage tax instead of sales tax. Your county clerk collects it when the vehicle is titled and registered.
Does a trade-in lower the tax in Kentucky?
Yes. The trade-in allowance comes off the price before the 6% usage tax is figured, on both new and used vehicles bought from a dealer.
Do Nissan rebates lower the tax in Kentucky?
Yes. A manufacturer or dealer rebate applied to your purchase at the time of sale comes off the taxed price.
Are extended warranties and service contracts taxed?
No. Kentucky leaves service contracts and extended warranties out of the price the usage tax is figured on. Loan interest is not taxed either.
How is the tax figured on a new vehicle?
On the total price you pay, shown on a notarized affidavit of total consideration that we complete with you. Without that affidavit, Kentucky uses 90% of the manufacturer's suggested retail price.
How much are title and registration in Kentucky?
In Jefferson County, a title application is $9 and a standard plate registration is $21. If the vehicle is financed, the clerk charges $22 to record the lien.
Is there a yearly vehicle tax in Kentucky?
Yes. Kentucky charges a yearly property tax on vehicles, assessed as of January 1. You receive a notice before your registration renewal and pay it to your county clerk.
Is there an extra fee for electric vehicles?
Yes. Kentucky charges a yearly fee on electric and plug-in vehicles when you register and renew. The base fee is $120 and it is adjusted for inflation.
How long is my temporary tag good for?
A Kentucky dealer temporary tag is valid for 60 days from delivery. We send your title and registration paperwork to the county clerk.
Where these numbers come from
- Kentucky Department of Revenue: motor vehicle usage tax
- KRS 138.450: definitions, total consideration and rebates
- KRS 138.4603: new vehicle retail price
- KRS 138.460: usage tax levy and collection
- Kentucky DOR clerk guide: motor vehicle usage tax (2025)
- Jefferson County Clerk: motor vehicle fees
- KRS 186A.100: temporary tags
- KRS 138.475 and KYTC: electric vehicle fee
- Kentucky Department of Revenue: motor vehicle property tax
Jeff Wyler Nissan of Louisville, a Nissan and used vehicle dealership at 4136 Shelbyville Rd, St. Matthews, KY 40207. A documentary service fee of $589 is included in every vehicle price in Jefferson County, KY. Tax rates and government fees on this page are as of November 2026, from the Kentucky Department of Revenue, Kentucky Revised Statutes and the Jefferson County Clerk, and can change. This page is general information, not tax advice; your buyer's order shows the exact amounts. Serving St. Matthews, Louisville and Southern Indiana.