Is Kentucky a Low Tax State?

When compared to other states in the US, Kentucky is thought of as having comparatively low taxes. Kentucky’s people pay a lower percentage of their income in taxes than the national average, placing the state 24th in the US for state-local tax burden, according to data from the Tax Foundation.

It’s crucial to remember that tax rates in Kentucky can vary greatly based on the type of tax and the particular county or city. For instance, depending on the area, sales tax rates might range from 6% to 7%, and depending on the county, property tax rates can range from 0.33% to 1.15% of assessed value.

Kentucky is not exceptionally pricey or inexpensive in comparison to other states when it comes to buying an automobile. Kentucky is ranked 26th in the nation for overall car costs, according to a recent WalletHub analysis that includes car sales taxes as well as expenses for petrol, maintenance, and auto insurance.

So which state has the highest car prices? The most expensive states for car purchases, according to the same survey, are Rhode Island, Michigan, and California. On the other side, Oregon is the least expensive state to buy a car in, in part due to the absence of a sales tax there.

In terms of car registration, Kentucky is neither unusually expensive nor inexpensive. In addition to a $21 basic license plate price, the state assesses a registration fee based on the vehicle’s age and value. However, unlike several other states, Kentucky does not impose an annual automobile tax.

The state and the particular taxes in question will determine whether or not car taxes increase in 2022. While some states have suggested tax decreases or are evaluating additional taxes on electric vehicles, several have already announced plans to hike taxes on gas or vehicle registrations. In general, it’s a good idea to keep up with any changes to state and local tax regulations that may have an impact on your costs associated with car ownership.

The actual tax rates can vary depending on the type of tax and the area, even though Kentucky is thought of as a state with comparatively modest taxes. In comparison to other jurisdictions, Kentucky is not exceptionally expensive or inexpensive when it comes to buying and registering a car, but it’s important to remember that taxes and fees can add up rapidly. Always do your homework and compare prices before making any significant purchases.