Kentucky Vehicle Bill of Sale

Is a bill of sale required to sell a car in Kentucky?

Kentucky does not require a separate bill of sale for private-party vehicle sales. The certificate of title — properly assigned and notarized — is the primary transfer document. The title assignment must include the buyer's name and address, the sale price, the date of sale, and the odometer reading. However, a bill of sale is still recommended as a personal record of the transaction and can protect both parties if disputes arise about the sale terms.

Does a Kentucky title need to be notarized?

Yes. Kentucky requires notarization of the title assignment for all private-party vehicle transfers. Both the seller's and the buyer's signatures must be notarized. This is one of the most important requirements in a Kentucky vehicle sale — if the title is not properly notarized, the county clerk will calculate the 6% motor vehicle usage tax on 100% of the NADA retail book value instead of the stated purchase price. Having the title notarized allows the tax to be calculated on the lower of the two values, which can save the buyer hundreds of dollars.

The bill of sale itself does not need to be notarized. The notarization requirement applies specifically to the title assignment. The buyer and seller should plan to sign the title together in front of a notary — county clerk offices typically provide notary services as part of the transfer process.

What taxes and fees does the buyer owe?

Kentucky charges a 6% motor vehicle usage tax on the purchase price or the NADA retail value, whichever applies based on whether the title was properly notarized with the purchase price disclosed. The minimum taxable value cannot be less than 50% of the NADA trade-in value. The title fee is $9, with an additional $17 application fee and a $2 notary fee if the county clerk notarizes the signatures. The buyer must complete the title transfer within 15 days to avoid penalties.

Transfers between qualifying family members — spouse, parent (including step-parents), and children (including step-children) — may be exempt from the usage tax. Siblings, grandparents, and other relatives do not qualify for the exemption.

What should the seller do after the sale?

The seller must return their license plates to the county clerk's office — Kentucky is one of the states that requires plates to be returned rather than simply removed. If the seller was a resident of Kentucky and the vehicle owner on January 1 of the current year, property taxes may be due on the vehicle. The seller should check with the county clerk to confirm whether any property tax obligation remains. The seller should also keep a copy of the notarized title assignment as proof that the vehicle was transferred.

What if the vehicle has multiple owners?

If the vehicle is titled to more than one person, all owners on the title must sign the bill of sale. Use the "Add a co-seller" option on the form to add the second seller's name and address. Both sellers' names and signature lines will appear on the document. For electronic signing, each co-owner can sign on the same device in sequence, or the document can be passed from one device to another via QR code or shared link. Both buyers can likewise be named on the bill of sale using the "Add a co-buyer" option.