If you’re planning to sell a home in Kentucky, it’s important to understand the costs involved — including the Kentucky real estate transfer tax. A transfer tax is a fee the state charges when property changes hands, typically calculated based on the sale price. In this short guide, we’ll break down how transfer taxes work in Kentucky and what you can expect to pay when you sell your property. We’ll also cover who typically pays the tax, whether local governments charge their own fees, and which exemptions might apply. Real estate transfer taxes are fees charged by the government when a property’s title is officially transferred from one owner to another. According to the Federal Trade Commission, these taxes are assessed at the state or local level when ownership changes hands. The title represents your legal claim to the property, and when you sell your home, passing that claim to the buyer typically triggers a transfer tax. The exact amount you’ll owe depends on where your property is located, as each state, county, or municipality may have its own tax rate and rules. In general, transfer taxes are one of several costs that support public services and generate revenue for local and state governments. The responsibility of who pays transfer taxes depends on the state, city, or municipality where a property changes hands. In Kentucky, sellers are responsible for paying any transfer taxes.What are transfer taxes?
Who pays for transfer taxes?
