In the case of vehicles brought into Kentucky by new residents, the taxable value is the average trade-in value as listed in the NADA Official Used Car Guide.

If a vehicle is given as a “gift” then the taxable value is the average trade-in value as listed in the NADA Official Used Car Guide.

Note: Penalty provisions for any person who willfully and fraudulently gives a false statement as to total and actual consideration paid for a motor vehicle shall be guilty of a Class D felony and shall be fined not less than $2,000 per offense.

Usage Tax

A motor vehicle usage tax of six percent (6%) is levied upon the “retail price” of vehicles registered for the first time in Kentucky. In the case of new vehicles, the “retail price” is the total consideration given (the consideration is the total of the cash or amount financed and the value of any vehicle traded in) or 90% of the manufacturer’s suggested retail price (MSRP), including all additional equipment and destination charges.

Note: Penalty provisions for any person who willfully and fraudulently gives a false statement as to total and actual consideration paid for a motor vehicle shall be guilty of a Class D felony and shall be fined not less than $2,000 per offense.