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Kentucky Charges You by the Mile — and They Mean It

Every state has its own way of taxing commercial trucks, but Kentucky’s approach stands out. Instead of a flat annual fee, Kentucky charges heavy trucks a per-mile tax for every mile driven on its highways. It’s called the Kentucky Weight Distance Tax, and the license you need to comply with it is known as a KYU number.

If your truck has a combined license weight over 59,999 pounds and it touches a Kentucky highway — even if you’re just passing through on I-65 or I-75 — you owe this tax. No exceptions for transit traffic. No grace period for out-of-state carriers. Kentucky tracks it, and the penalties for non-compliance hit fast and hard: a $500 revocation fee, interest charges, and potential citations at weigh stations that can shut your trip down cold.

The good news? The KYU system is straightforward once you understand the rules. This guide covers everything: who needs a KYU permit, how the tax is calculated, when you file, and the mistakes that cost carriers real money every quarter.

What Is the KYU Weight Distance Tax?

The KYU Weight Distance Tax is a mileage-based highway use tax administered by the Kentucky Transportation Cabinet, Division of Motor Carriers. It’s governed by KRS 138.660, which sets the tax rate and defines who owes it.

Here’s how it works in plain terms:

• Every mile you drive in Kentucky gets taxed. The current rate is $0.0285 per mile (2.85 cents per mile) for each qualifying vehicle.
• You report your miles and pay quarterly. Kentucky gives you four deadlines throughout the year, and you must file even if your trucks didn’t enter the state that quarter.
• Your KYU number is your tax license. It’s not a physical permit you carry in the cab — it’s a registration number tied to your carrier account that proves you’re enrolled in the system.

The KYU tax is completely separate from federal HVUT (Form 2290), IFTA fuel tax, and IRP registration. You can be fully compliant with all three of those and still get cited for not having a KYU number. Think of it as Kentucky’s own layer on top of the federal and multi-state systems you’re already dealing with.

How Does KYU Compare to Other State Weight Distance Taxes?

Kentucky isn’t the only state that charges a mileage-based tax on heavy trucks. New York has its Highway Use Tax (HUT), Oregon has its Weight-Mile Tax, and New Mexico has its own Weight Distance Tax. Each state runs its own system with different rates, thresholds, and filing requirements.

What makes Kentucky’s version worth paying attention to:

• The weight threshold is 60,000 pounds — higher than New York’s 18,000-pound HUT threshold, but it still catches most loaded Class 8 trucks running through the state.
• The rate ($0.0285/mile) is relatively modest compared to some states, but it adds up fast on high-mileage routes. A truck running 5,000 miles in Kentucky per quarter owes $142.50 just in KYU tax.
• Quarterly filing is mandatory even with zero miles. Miss a filing and you’re looking at a $500 penalty regardless of whether you owe any tax.

Who Needs a KYU Number?

You need a KYU number if you operate any motor vehicle on Kentucky public highways with a combined license weight (or gross weight) greater than 59,999 pounds. That includes:

• Interstate carriers passing through Kentucky on I-65, I-75, I-64, I-71, or any other Kentucky highway
• Intrastate carriers based in Kentucky running loads within the state
• Owner-operators leased to a carrier — the carrier holding the operating authority is responsible for the KYU number, but you need to confirm your carrier has it
• Both loaded and empty trucks — the weight threshold is based on combined license weight, not actual cargo weight. If your truck is plated for 80,000 pounds, you owe KYU even when you’re running empty

Who’s Exempt?

Kentucky exempts a narrow set of vehicles from the KYU tax:

• Farm-plated vehicles — trucks with Kentucky farm license plates used exclusively for agricultural purposes are exempt from paying the KYU tax
• Vehicles under 60,000 pounds combined license weight — if your truck and trailer combination is registered below the 60,000-pound threshold, you don’t owe KYU
• Government vehicles — federal, state, and local government-owned vehicles operating in an official capacity

If you’re not sure whether your operation qualifies for an exemption, the safest move is to register. Having a KYU number when you don’t strictly need one costs you nothing. Not having one when you do can cost you $500 or more on the spot.

How to Register for a KYU Number

Kentucky has moved the entire KYU registration process online. Here’s the step-by-step:

Step 1: Create a Kentucky Online Gateway Account

Before you can apply for a KYU number, you need a Kentucky Online Gateway (KOG) account. This is the state’s single sign-on system for accessing various government services, including the Motor Carrier Portal where KYU filings happen.

Setting up a KOG account takes about 10 minutes. You’ll need a valid email address, and you’ll create a username and password. Keep these credentials somewhere safe — you’ll use them every quarter.

Step 2: Complete the Online KYU Application

Once your KOG account is active, you can apply for a KYU number through the Motor Carrier Portal. The application asks for your:

• USDOT number
• Company name and address
• Federal EIN (Employer Identification Number)
• Vehicle information for every truck that needs to be on your KYU inventory

KYU numbers are issued immediately when you complete the online application. You don’t wait days or weeks — as soon as you submit, your number is active and you can operate legally in Kentucky.

Step 3: Add Your Vehicles to the KYU Inventory

Every qualifying vehicle must be listed in your KYU inventory through the Motor Carrier Portal. This isn’t optional. Kentucky can cite you at a weigh station if a truck is operating under your authority but isn’t listed on your KYU account.

When you add or remove trucks from your fleet, update your KYU inventory immediately. Don’t wait until the next quarterly filing — Kentucky expects your vehicle list to be current at all times.

What If You Can’t Apply Online?

If you’re having technical issues with the online application, Kentucky does accept a paper application — Form TC 95-1. But here’s the catch: paper applications take 10 to 14 business days to process, and you won’t receive your KYU number until processing is complete. That means you can’t legally operate in Kentucky during that waiting period.

Bottom line: use the online application. It’s faster by weeks.

Temporary KYU Permits: For One-Time or Infrequent Trips

Not every carrier needs a permanent KYU number. If you’re making a single trip through Kentucky or only pass through the state once or twice a year, Kentucky offers a temporary KYU permit that covers one truck for one trip.

Here’s how temporary KYU permits work:

• One permit per truck, per trip. Each temporary permit is valid for a single vehicle making a single trip through Kentucky.
• You pay an estimated tax based on your route and expected miles in Kentucky. The state calculates this when you purchase the permit.
• No quarterly filing required. The temporary permit satisfies your KYU obligation for that trip. You don’t need to file a return later.
• Available online through Kentucky’s Motor Carrier Permits portal. You can purchase one before your trip and have it ready to go.

When Does a Permanent KYU Number Make More Sense?

The break-even math is straightforward. Temporary permits carry a flat fee per trip, while the permanent KYU number only costs you the per-mile tax of $0.0285 times your actual Kentucky miles.

If you’re running through Kentucky more than a handful of times per year, the permanent number almost always costs less. Here’s a rough example:

• A truck making 4 trips through Kentucky per year, averaging 200 miles per trip = 800 miles × $0.0285 = $22.80 in annual KYU tax with a permanent number
• The same 4 trips with temporary permits would cost significantly more in permit fees

For carriers running regular routes through Kentucky — especially I-75 corridor traffic between Michigan and Florida or I-65 traffic between Indiana and Tennessee — the permanent KYU number is the clear choice.

Quarterly Filing: Deadlines, Process, and What to Report

Once you have a permanent KYU number, you’re locked into quarterly filings for as long as the account is active. Kentucky doesn’t care if your trucks didn’t enter the state — you still file.

Filing Deadlines

Q1	January – March	April 30
Q2	April – June	July 31
Q3	July – September	October 31
Q4	October – December	January 31

These deadlines are firm. Kentucky does not grant extensions for KYU filings.

What You Report

Each quarterly return requires:

• Total miles driven in Kentucky by each vehicle on your KYU inventory during the quarter
• Vehicle information for each truck that operated in Kentucky
• Tax calculation — Kentucky miles × $0.0285 = tax owed

As of Q4 2024, all KYU tax returns must be filed and paid online through the Motor Carrier Portal. Kentucky no longer accepts paper filings for quarterly returns. Payment methods include credit card or ACH transfer.

Zero-Mile Filings

This is where a lot of carriers get tripped up. If your trucks did not enter Kentucky during a quarter, you still must file a return reporting zero miles. Filing zero miles takes about two minutes online and costs you nothing. Not filing at all triggers the full penalty — $500, interest, and potential license revocation.

There is no logical reason to skip a zero-mile filing. Set a calendar reminder for each deadline and file it whether you ran miles or not.

Penalties for Non-Compliance

Kentucky does not mess around with KYU enforcement. The penalty structure is designed to make non-compliance far more expensive than just paying the tax:

Late Filing or Failure to File

• $500 revocation fee — this is assessed per late filing, not per vehicle. Miss one quarter and you owe $500 before you can reinstate your KYU license.
• Interest charges on unpaid tax from the due date until payment
• License revocation — Kentucky will revoke your KYU number, which means every truck on your account is operating illegally in the state until you reinstate

Operating Without a KYU Number

• Citations at weigh stations — Kentucky weigh station officers check for KYU compliance. If your truck is over 60,000 pounds and you can’t produce a valid KYU number or temporary permit, you’ll be cited.
• Vehicle detention — in some cases, a truck can be held at the weigh station until the carrier resolves the KYU issue
• Fines that vary by situation but always cost more than the tax would have

Reinstating a Revoked KYU License

If your KYU license gets revoked for non-filing, you’ll need to:

1. File all delinquent quarterly returns
2. Pay all outstanding tax plus interest
3. Pay the $500 revocation penalty for each missed quarter
4. Wait for the Division of Motor Carriers to process the reinstatement

A carrier who misses two quarters of filing could easily owe $1,000 in penalties alone — before a single dollar of actual tax is calculated. That’s money straight out of your pocket for paperwork you could have done in five minutes.

Common Mistakes That Cost Carriers Money

After years of handling KYU permits for trucking companies, these are the mistakes we see over and over:

1. Assuming “Passing Through” Means You Don’t Owe

Kentucky’s weight distance tax applies to every mile on every Kentucky highway. There’s no transit exemption. If your route takes you through Kentucky for even 30 miles on I-75, those 30 miles are taxable. Carriers running regular lanes through Kentucky who assume they’re exempt because they never stop in the state are racking up liability every single trip.

2. Skipping Zero-Mile Filings

This is the most expensive mistake on the list relative to the effort required. Filing zero miles takes two minutes and costs nothing. Not filing costs $500 and potentially your KYU license. Yet every quarter, carriers let the deadline pass because they figure they don’t owe anything so they don’t need to file. Wrong.

3. Not Updating the Vehicle Inventory

When you add a truck to your fleet or remove one, your KYU inventory needs to reflect that change immediately. Kentucky can cite you at a weigh station if a truck is operating under your authority but isn’t listed on your KYU account. It’s the same idea as keeping your IRP cab cards current — your paperwork needs to match what’s on the road.

4. Confusing KYU with KIT

Kentucky has two separate tax programs for motor carriers: KYU (Weight Distance Tax) and KIT (Kentucky Incentive Tax, a fuel tax). They’re filed through the same portal, but they’re different taxes with different calculations. KYU is based on miles driven. KIT is based on fuel purchased and consumed in Kentucky. Some carriers need both. Make sure you know which filings apply to your operation.

5. Waiting for a Paper Application When You Need to Move Freight Now

The online KYU application gives you a number immediately. The paper application takes 10 to 14 business days. If you’ve got a load that needs to move through Kentucky this week, the paper route will leave you stuck. Always apply online, or grab a temporary permit to cover you while the permanent application processes.

FAQ

Q: How much does the KYU tax cost per mile? A: The current rate is $0.0285 per mile (2.85 cents) for each qualifying vehicle. A truck driving 1,000 miles in Kentucky during a quarter would owe $28.50 in KYU tax for that quarter.

Q: Do I need a KYU permit if I’m just driving through Kentucky? A: Yes. There is no transit exemption. If your truck weighs over 60,000 pounds and drives on any Kentucky public highway, you owe the weight distance tax — even if you never stop in the state.

Q: What happens if I miss a quarterly KYU filing deadline? A: Kentucky assesses a $500 revocation fee, charges interest on any unpaid tax, and revokes your KYU license. All outstanding returns must be filed and all penalties paid before reinstatement.

Q: Can I get a temporary KYU permit instead of a permanent number? A: Yes. Kentucky offers one-time temporary KYU permits for individual trucks making single trips through the state. They’re available online through the Motor Carrier Permits portal. If you run through Kentucky regularly, a permanent KYU number is almost always cheaper.

Q: Do I still need to file if my trucks didn’t enter Kentucky this quarter? A: Absolutely. You must file a zero-mile return every quarter, even if no vehicles traveled in Kentucky. Failure to file a zero-mile return triggers the same $500 penalty as missing a return with actual miles.

Q: Is the KYU tax the same as IFTA or IRP? A: No. KYU is Kentucky’s state-specific weight distance tax, completely separate from IFTA (fuel tax) and IRP (registration). You can be fully IFTA and IRP compliant and still owe KYU. Many carriers need all three plus KYU to operate legally in Kentucky.

Get Your KYU Permit Handled Right

Dealing with Kentucky’s weight distance tax doesn’t have to be complicated, but getting it wrong gets expensive fast. Custom Permits handles KYU registration, quarterly filings, and temporary permits every single day — we know the system inside and out and we’ll make sure your filings are on time, your vehicle inventory is current, and you’re never paying a dime more than you owe. Get in touch and let us take the KYU headache off your plate so you can focus on moving freight.