Your Car Taxes in Kentucky: A Mix of Elected and Unelected Decisions

By Jesse Brewer, Boone County Commissioner

If you live in Kentucky and own a vehicle then you are aware of the expense that goes with renewing your vehicle each year. Not only do you pay a 6% road usage tax (based on the vehicle’s value) when you first register the vehicle, annually, you will pay numerous fees to various taxing entities. It is done through what is known as an ad valorem tax. An ad valorem tax on motor vehicles is a yearly tax based on the value of your vehicle. In Kentucky, this tax is charged by the state, your county, city, school district, and sometimes special districts. The amount you pay depends on your vehicle’s assessed value, and the money collected helps fund local services like schools, roads, police, fire protection, and other public programs. Understanding Kentucky car taxes and budget transparency in these processes is important for all vehicle owners.

How Kentucky Car Taxes Work

In Kentucky the amount of tax you pay on your motor vehicle each year is based on $100 of the vehicle’s assessed value. The state of Kentucky levies an annual renewal tax of $0.45 to all Kentuckians, but have you ever wondered what you pay in total? In addition to the state’s tax, you can have taxes from counties, cities, fire districts, library boards, health departments, extension districts and school boards. Awareness of government accountability and fiscal responsibility helps taxpayers understand why these Kentucky car taxes and other local government taxes are charged.

Location Matters

Where you live it matters on how much vehicle taxes in Kentucky you will pay. In unincorporated Boone County you will pay anywhere from $0.70 to over $1.20 per $100 depending on what school district you live in and if you live in Walton or not. I did find that the cities of Florence and Union do not have any ad valorem tax on motor vehicles at all in the county. This variation shows why staying informed about Kentucky car taxes at both the county and city level is important.

School Boards Drive the Rates

Looking at the area of Boone, Campbell and Kenton counties I found that the more expensive districts were the school boards. The lowest of the school districts in the 3-county area was Boone County schools at $0.497 cents per $100 of assessed value on the motor vehicle.

Who Imposes Kentucky Car Taxes??

The ad valorem tax on your motor vehicle is an annual tax, imposed by various government entities such as the state, counties, potentially cities, health districts, library boards, fire protection districts and in the case of Kenton County, the Planning Commission. These taxes often will be well over 1% of the value of the vehicle and in addition to flat rate registration fees. Understanding local government taxes and public funds oversight helps residents see the full picture of where their money goes.

Accountability at the Local Level

While we all want well-funded schools, safe communities, and strong public health services, the reality is that many of these taxes are levied by appointed boards, not elected officials. Fire districts, library boards, and health departments all wield taxing power without direct voter accountability. That’s why government accountability and fiscal responsibility matter.

It’s critical to stay engaged with your local elected officials, who ultimately influence or approve these structures. Whether it’s insurance premium taxes, dwelling fees, or motor vehicle ad valorem taxes, local government decisions directly impact your wallet, especially when it comes to taxpayer money and public funds oversight.

Learn More

If you are interested in a complete list for the entire state you can find the link here:2024 Motor Vehicle Tax Rate Book (KY Revenue)