AerScheduler

Aircraft tax · United States

Kentucky aircraft sales and use tax

Kentucky charges 6 percent sales or use tax on aircraft, rentals and repair parts, with exemptions only for aircraft used in interstate commerce for hire. Aircraft not used for hire pay a low state property tax of $0.015 per $100 of value, and local property tax unless the local district exempts them.

Every answer below quotes the state's own source. Last checked October 18, 2026. Estimate the tax on your aircraft

Do you pay sales tax on an aircraft bought in Kentucky?

Taxed. Six percent sales tax on the gross receipts from the retail sale of an aircraft.

  • A tax is hereby imposed upon all retailers at the rate of six percent (6%) of the gross receipts derived from: (1) Retail sales of: (a) Tangible personal property, regardless of the method of delivery, made within this Commonwealth;

    Kentucky Revised Statutes, KRS 139.200(1)(a) · checked October 18, 2026

Do you owe use tax on an aircraft bought outside Kentucky?

Depends. Use tax applies to an aircraft bought elsewhere and stored or used in Kentucky. Sales tax legally paid to another state is credited, and only any difference is owed, unless that state gives no credit for Kentucky tax.

  • An excise tax is hereby imposed on the storage, use, or other consumption

    Kentucky Revised Statutes, KRS 139.310(1) · checked October 18, 2026

  • If the amount of tax paid in another state is not equal to or greater than the amount of tax imposed by KRS 139.310, then the taxpayer shall pay to the department an amount sufficient to make the tax paid in the other state and in this state equal to the amount imposed by KRS 139.310.

    Kentucky Revised Statutes, KRS 139.510(1) · checked October 18, 2026

  • No credit shall be given under this section for sales taxes paid in another state if that state does not grant credit for sales taxes paid in this state.

    Kentucky Revised Statutes, KRS 139.510(1) · checked October 18, 2026

What aircraft sales tax exemptions does Kentucky have?

Depends. Aircraft, their repair and replacement parts, and supplies other than fuel are exempt when the aircraft operates in interstate commerce and is used only to carry property or passengers for hire. No fly-away exemption for nonresident buyers is in current law.

  • Aircraft, repair and replacement parts therefor, and supplies, except fuel, for the direct operation of aircraft in interstate commerce and used exclusively for the conveyance of property or passengers for hire. Nominal intrastate use shall not subject the property to the taxes imposed by this chapter;

    Kentucky Revised Statutes, KRS 139.480(18) · checked October 18, 2026

Are aircraft rentals taxed in Kentucky?

Taxed. A lease or rental of tangible personal property is a retail sale in Kentucky, so aircraft rentals are taxed.

Is flight instruction taxed in Kentucky?

Not clearly published. Kentucky taxes "leisure, recreational, and athletic instructional services". Whether flight training counts, particularly training for a pilot certificate or career, is not addressed in the statute, and no Department guidance on flight instruction was found.

Are aircraft parts and maintenance labor taxed in Kentucky?

Taxed. Replacement parts are taxable, and the taxable price includes the charge for labor to install or apply them. Aircraft repair labor is not on the list of taxable services when no parts are sold. Parts for aircraft used in interstate commerce for hire are exempt.

Does Kentucky register or tax aircraft every year?

Taxed. Aircraft not used to carry persons or property for hire pay state property tax of one and one-half cents ($0.015) per $100 of value. They pay local property tax too, unless the county, city, school or other district where the aircraft is based approves an exemption.

AerScheduler can add sales tax, at the rates you set, to the invoices you raise for parts, labor and other charges, taxing only the lines your state taxes. How it works

Other states