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Kentucky · KRS 142.050Kentucky transfer tax: 50¢ per $500, on the seller

Kentucky imposes its real estate transfer tax on the grantor – the seller – at fifty cents for each $500 of value or fraction, for the privilege of transferring title (KRS 142.050(2)). Value is the full actual consideration, including any liens on the property; for a gift or nominal-consideration deed it is the open-market price. The county clerk computes the tax from the value declared in the deed and collects it before accepting the deed for recording, once per transaction (KRS 142.050(3)). On a $400,000 sale the seller pays $400. Transfers only to secure or release a debt, and gift or nominal deeds to or from government, are among the exemptions.

Rate, who pays and an example

  1. Rate

    50¢ per $500 of value or fraction (KRS 142.050(2)).

  2. Who pays

    The grantor named in the deed – the seller (KRS 142.050(2)).

  3. Value

    Full actual consideration including liens; open-market price for gifts or nominal deeds (KRS 142.050(1)(b)).

  4. Collection

    County clerk collects before recording, based on the value declared in the deed (KRS 142.050(3)).

  5. Example

    $400,000 sale → 800 × $0.50 = $400.

Good to know

  • Exempt transfers include those made solely to provide or release security for a debt and gift or nominal deeds to or from the United States, Kentucky or its local governments (KRS 142.050(7)).

What the TC checks

  • The tax line on the closing statement against the statutory rate.
  • Who pays it – the statute, the contract or local custom.
  • The value or consideration stated on the deed or declaration.

Questions about this tax

Who pays transfer tax in Kentucky?

The grantor – the seller – under KRS 142.050(2), unless the contract shifts the cost.

How much is Kentucky's transfer tax?

50 cents per $500 of value – $400 on a $400,000 sale.

Does an assumed mortgage count in Kentucky?

Yes. Value includes the amount of any liens on the property.

Related guides

Add the transfer tax check to the closing statement review as a task with an owner and due date in ClosingCode.

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Source: Kentucky Revised Statutes 142.050 (apps.legislature.ky.gov, read October 25, 2026).

General information, not legal or tax advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.