Kentucky Highway Use Tax and Weight Distance Reporting

What is it?

• The KYU tax is a mileage-based tax imposed by the Kentucky Transportation Cabinet (KYTC) on commercial motor vehicles operating on Kentucky public highways that meet certain weight thresholds. 

• Despite being called a “weight-distance” tax, the key is: vehicles with a combined licensed or actual gross weight of more than 59,999 pounds (i.e., 60,000 lbs or more) when operating on Kentucky highways are subject to the tax.  

• The tax license/number issued for this is called a “KYU number.” 

How it’s calculated & reported

• The tax rate is $0.285 per mile   for each qualified vehicle traveling on Kentucky highways.  

• Returns are filed quarterly, even if no miles were traveled in Kentucky during that quarter. Filing zero-miles is required to remain in compliance.  

• Filing due dates:

  • Q1 (Jan-Mar): Due April 30 

  • Q2 (Apr-Jun): Due July 31  

  • Q3 (Jul-Sep): Due October 31  

  • Q4 (Oct-Dec): Due January 31 (following year) 

• As of 4th quarter 2024, returns must be filed and paid online through the Motor Carrier Portal; paper checks are no longer accepted for KYU filings.  

Who must comply

• Any carrier (intrastate or interstate) whose vehicle(s) have a combined licensed weight (or actual weight when operated) of 60,000 lbs or more and operates on Kentucky public highways.  

• The tax applies even if the carrier is based out-of-state but uses Kentucky highways with qualifying vehicles.  

• Note: The KYU tax is separate from other taxes such as:

  • International Fuel Tax Agreement (IFTA) fuel tax filings

  • Federal heavy-highway vehicle use tax (HVUT)
    They may all apply (depending on operations), but you cannot use IFTA filings instead of KYU. 

Record-keeping & audit requirements

• Records must be kept for 5 years for KYU (mileage records, vehicle lists, etc.).  

• Acceptable documentation includes: Individual Vehicle Mileage Records (IVMR) showing: date, origin/destination, route details, beginning & ending odometer readings, miles traveled, unit number.  

• If using software for mileage tracking, the recap must show equivalent details (unit number, date, origin/destination, miles, jurisdiction by miles) plus drivers’ logs and fuel receipts.  

 Compliance pitfalls & tips

• Zero-mile filings: If you are registered but do not travel any miles in Kentucky during a quarter, you still must file a return with zero miles to avoid penalties.  

• Late filing penalties: Failure to file by deadline may result in license revocation and a $500 penalty.  

• Vehicle list updates: All qualified vehicles must be listed (and updated) in your KYU inventory. Missing vehicles can trigger citations.  

• Temporary travel: If you only pass through Kentucky infrequently, you may be eligible for a one-time temporary KYU permit (per truck) rather than full quarterly filings.  

• Payment method: Since Jan 1, 2025 (for 4Q 2024 onward) you must pay online (credit card or ACH); mailed paper checks are no longer accepted.  

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