Kentucky KYU Weight Distance Tax Guide

The KYU Tax: Kentucky’s Compliance Trap

The Kentucky Usage Tax (KYU) is a weight distance tax that applies to ALL motor carriers operating vehicles with a combined weight of 60,000 pounds or more on Kentucky highways. Interstate and intrastate — both are subject. The tax rate is $0.0285 per mile traveled in Kentucky, and quarterly returns must be filed even if you drove zero miles in the state during that quarter.

This catches out-of-state carriers constantly. A carrier who runs through Kentucky on I-75 once and never thinks about the KYU again will eventually receive a notice, penalties, and a $500 revocation fee. The tax itself is small — 500 miles through Kentucky costs about $14.25 — but the penalties for non-compliance are not.

Who Must Register

Exemptions

The following are exempt from KYU registration:

• Farm-plated vehicles
• Government vehicles
• Emergency vehicles
• Recreational vehicles
• Vehicles operating under a valid 10-day temporary permit (occasional use)

Tax Rate and Calculation

The current KYU tax rate is $0.0285 per mile traveled on Kentucky roads.

Miles are calculated based on actual miles traveled in Kentucky, not loaded miles only. Deadhead miles count. Bobtail miles count if your vehicle exceeds the 60,000-pound threshold with typical trailer attached.

Quarterly Filing Calendar

KYU returns are filed quarterly. The filing deadlines are firm:

Critical: You must file a return every quarter even if you had zero miles in Kentucky during that period. A zero-mile return takes two minutes online. Failing to file costs $500 in revocation fees plus penalties and interest.

10-Day Temporary Permits

For carriers who only occasionally travel through Kentucky, a 10-day temporary KYU permit is available. This covers a single trip or short period without requiring full quarterly registration.

Temporary permits can be obtained through the Kentucky Transportation Cabinet. They are a practical option for carriers who run through Kentucky a few times per year but do not maintain regular routes through the state.

Penalties for Non-Compliance

Kentucky enforcement officers can verify KYU registration status at weigh stations. Operating without a valid KYU account when your vehicle meets the weight threshold is a citable offense.

How to Register

1. Gather required documents: USDOT number, MC authority (if for-hire), current UCR filing
2. Go to drive.ky.gov
3. Complete the KYU application
4. Receive your KYU account number
5. Begin tracking miles traveled in Kentucky
6. File quarterly returns by the deadlines above

The registration process is straightforward. The ongoing obligation — quarterly filing, even for zero miles — is where carriers get tripped up.

KYU and Insurance

The KYU tax is an operating cost, not an insurance cost. However, Kentucky also requires a $1,000,000 CSL minimum for commercial vehicles — higher than the federal $750,000 minimum. Carriers entering Kentucky need both the KYU registration and adequate insurance to be fully compliant.

RMS can help with the insurance side. The KYU registration is between you and the Kentucky Transportation Cabinet at drive.ky.gov.

Comparison with Other State Mileage Taxes

Kentucky is not the only state with a weight distance tax:

The KYU rate is modest compared to Oregon’s weight-mile tax, but the quarterly filing requirement and zero-mile filing obligation make it more of an administrative burden than a financial one for most carriers.