# Kentucky aircraft 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.

Source: https://www.aerscheduler.com/aircraft-tax/united-states/kentucky
Checked: 2026-10-18

## 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)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58186). Checked 2026-10-18.

## 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)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58189). Checked 2026-10-18.

> "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)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47353). Checked 2026-10-18.

> "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)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47353). Checked 2026-10-18.

## 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)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57938). Checked 2026-10-18.

## 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.

> ""Retail sale" means any sale, lease, or rental for any purpose other than resale, sublease, or subrent;"
>
> Kentucky Revised Statutes, [KRS 139.010, definition of "Retail sale"](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58185). Checked 2026-10-18.

> ""Lease or rental" means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration."
>
> Kentucky Revised Statutes, [KRS 139.010, definition of "Lease or rental"](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58185). Checked 2026-10-18.

## 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.

> "Leisure, recreational, and athletic instructional services;"
>
> Kentucky Revised Statutes, [KRS 139.200(2)(ak)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58186). Checked 2026-10-18.

## 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.

> "The amount charged for labor or services rendered in installing or applying the tangible personal property,"
>
> Kentucky Revised Statutes, [KRS 139.010, definition of "Sales price"](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58185). Checked 2026-10-18.

> "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."
>
> Kentucky Revised Statutes, [KRS 139.480(18)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57938). Checked 2026-10-18.

## 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.

> "One and one-half cents ($0.015) upon each one hundred dollars ($100) of value of all:"
>
> Kentucky Revised Statutes, [KRS 132.020(1)(f)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53523). Checked 2026-10-18.

> "Aircraft not used in the business of transporting persons or property for compensation or hire;"
>
> Kentucky Revised Statutes, [KRS 132.020(1)(f)5.](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53523). Checked 2026-10-18.

> "Aircraft not used in the business of transporting persons or property for compensation or hire if an exemption is approved by the county, city, school, or other taxing district in which the aircraft has its taxable situs;"
>
> Kentucky Revised Statutes, [KRS 132.200(13)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53524). Checked 2026-10-18.

_Not tax advice. Confirm with the state's revenue department or a CPA before a purchase or a pricing decision._