Taxes when buying a house in Kentucky
Kentucky does not tax the buyer on a home purchase or on the mortgage. The transfer tax ($0.50 per $500 (0.1%)) is usually paid by the seller.
What a Kentucky home buyer is taxed on
- Buyer's taxes
- None on the purchase or the mortgage.
- Transfer tax
- The seller. The statute puts the tax on the person granting the deed.
- Sales tax
- None. A home is real estate, and sales tax does not apply to it.
- Official source
- Henderson County Clerk (KRS 142.050)
- Last verified
Kentucky buyer taxes at common prices
| Purchase price | Loan with 20% down | Buyer's taxes |
|---|---|---|
| $150,000 | $120,000 | $0 |
| $250,000 | $200,000 | $0 |
| $400,000 | $320,000 | $0 |
| $600,000 | $480,000 | $0 |
| $1,000,000 | $800,000 | $0 |
Questions Kentucky buyers ask
Do buyers pay transfer tax in Kentucky?
The seller. The statute puts the tax on the person granting the deed.
Is there a mortgage tax in Kentucky?
No. Kentucky does not tax the recording of a mortgage. The county charges only a flat fee to record it.
Is there sales tax when you buy a house in Kentucky?
No. Sales tax applies to goods and some services, and a house is real estate, which no state taxes that way.
How much tax does a buyer pay at closing in Kentucky?
Usually none. On a $400,000 home a Kentucky buyer owes no state or local tax on the purchase itself. Closing costs still include lender fees, title insurance and prepaid property tax.
Selling in Kentucky? Use the Kentucky transfer tax calculator.
Buyer taxes in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming