Kentucky Closing Costs for Sellers in 2026: Transfer Tax, Fees and Real Numbers
Kentucky's deed transfer tax is $0.50 per $500 of value and is imposed on the grantor, the seller. That is $300 on a $300,000 sale. Full breakdown.
Kentucky imposes a real estate transfer tax of fifty cents for each $500 of value, or fraction of $500, and the statute puts it on the grantor named in the deed, meaning the seller. On a hypothetical $300,000 sale that is $300. The county clerk collects it when the deed is recorded. Commission is negotiable.
What a Kentucky seller owes at closing
Kentucky’s real estate transfer tax is one of the simpler ones to model. It is a single statewide formula in KRS 142.050, charged on the deed, collected by the county clerk when the deed is recorded, and imposed on the seller. We did not find a second state layer in the statute, and we are not quoting local rates because the section we reviewed does not set any.
The rule
KRS 142.050(2) imposes the tax “upon the grantor named in the deed” at the rate of fifty cents ($0.50) for each $500 of value, or fraction of $500, “which value is declared in the deed upon the privilege of transferring title to real property.”
| Item | What the statute says |
|---|---|
| Rate | $0.50 for each $500 of value or fraction thereof |
| Imposed on | The grantor named in the deed |
| Value, not a gift | Full actual consideration, paid or to be paid, including any liens |
| Value, gift or nominal consideration | Estimated open-market price between a willing buyer and a willing seller |
| Collected by | County clerk, as a prerequisite to accepting the deed for recording |
| Frequency | Collected once per transaction, in the county where the deed must be recorded |
The clerk computes the tax from the value stated in the deed. The statute also fines a clerk who records a taxable deed without collecting the tax, so the amount shows up at recording whether or not anyone volunteers it.
Worked example on a hypothetical $300,000 sale
- Divide the value by $500: $300,000 divided by 500 = 600 units. There is no remainder, so nothing rounds up.
- Multiply by $0.50: 600 x $0.50 = $300.
That is 0.10% of the price. A sale at $300,100 would round the extra $100 up to a full unit, adding $0.50.
Exemptions
KRS 142.050(7) lists transfers the tax does not apply to. The ones visible in the statute section we reviewed include deeds recorded before March 27, 1968, deeds to or from governments, deeds that only provide or release security for a debt, deeds that confirm or correct a recorded deed, transfers between spouses or between former spouses as part of a divorce, sales for delinquent taxes or assessments, and partition. The list continues beyond that, so read the statute or ask your title company before relying on an exemption.
Who pays
By the statute’s wording, the grantor pays. The grantor is the seller. A purchase contract can still address closing costs, and splitting or shifting a cost is a negotiation, so ask your title company or closing attorney what is customary locally.
Other seller costs
Commission is negotiable. Mortgage payoff, prorated property taxes, title and escrow fees and recording fees also apply in most sales. This guide does not quote amounts for those because they vary by lender, county and title company. Ask for a seller’s net sheet early.
Why investors care
Flips. The tax is on both ends of a flip. When you buy, the seller owes it by default, but a contract term that shifts it to you makes it a buy-side cost. When you sell, you are the grantor and you owe it. On a flip bought at $200,000 and resold at $300,000, the exit tax is $300, and the entry tax would be $200 (400 units at $0.50) if your contract put it on you. Model both.
Wholesale assignment vs. double close. In an assignment, the original seller deeds directly to your end buyer, and the tax is computed on the value in that deed. A double close means two closings and two sets of costs: one deed from the seller to you and a second from you to your buyer. On the second deed you are the grantor, so the statute puts that tax on you, in addition to the second set of title and recording charges. Ask your title company how the stated values are handled across the two deeds.
Max allowable offer. Add the exit tax, about $0.10 per $100 of resale price by the formula above, to your exit costs before you set your maximum offer. Because liens count toward value, a deal with large debt still carries tax on the full consideration.
Run your numbers
Use our closing cost calculator to add the transfer tax to your deal math and the deal analyzer to see the effect on your margin. Automize CRM keeps your deal numbers and follow-ups in one place.
This is general information, not legal or tax advice. Confirm your exact figures with your title company or closing attorney.
Sources
Rates checked October 24, 2026. General information, not tax or legal advice.
Common questions
How much is the Kentucky real estate transfer tax?
KRS 142.050 sets the rate at fifty cents ($0.50) for each $500 of value, or fraction of $500, declared in the deed. On a hypothetical $300,000 sale, that is 600 units at $0.50, or $300. The county clerk computes it when the deed is offered for recording.
Who pays the transfer tax in Kentucky?
The statute imposes the tax upon the grantor named in the deed, which is the seller. The county clerk collects it as a prerequisite to recording. A purchase contract can still allocate costs differently, so ask your title company or closing attorney what is customary locally.
How is value determined for the Kentucky transfer tax?
For a deed that is not a gift, value is the full actual consideration paid or to be paid, including the amount of any liens on the property. For a gift or a deed with nominal or no stated consideration, it is the estimated open-market price between a willing buyer and seller.
Are any transfers exempt from the Kentucky transfer tax?
Yes. KRS 142.050(7) lists exemptions, including deeds that only secure or release a debt, deeds that confirm or correct a recorded deed, transfers between spouses or former spouses in a divorce, sales for delinquent taxes, partitions, and transfers to or from governments. Read the full list before relying on one.
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