Costs of Selling Land in Kentucky

Selling Costs in Kentucky: What to Know

Kentucky charges a real estate transfer tax, and the law puts it on the seller. The county clerk collects it before recording the deed.

This page lists each cost, who pays it, and where the rate comes from. It ends with a worked example on a $25,000 lot, plus capital gains basics.

Kentucky transfer tax: $0.50 per $500, paid by the grantor

Under KRS 142.050, Kentucky taxes the grantor (the seller) 50 cents for each $500 of value, or part of $500. That equals $1 per $1,000. Value is the full price paid, or fair market value for a gift.

The county clerk works out the tax and collects it before the deed is accepted for recording. Kentucky does not add a separate county or city transfer tax.

Recording the deed

Kentucky county clerks charge $50 to record a deed of up to five pages, plus $3 for each page over five. The buyer usually pays to record the deed.

Who pays what by custom in Kentucky

The seller pays the transfer tax because the statute puts it on the grantor. The buyer usually pays recording and any loan costs. Title and closing fees are set by the contract and often split.

Attorney or title company closing

Attorneys handle many Kentucky closings and often prepare the deed. Title companies also close sales. Rules on who may prepare a deed and give legal advice apply, so ask your closer who will draft the deed. Fees are not set by law.

Capital gains tax when you sell land in Kentucky

Your gain is the sale price minus your basis. Basis is usually what you paid plus improvements and some purchase and sale costs. If you inherited the land, your basis is usually the value on the date of death, so the gain is often small.

If you owned the land for more than one year, the federal government taxes the gain at 0%, 15% or 20%, depending on your taxable income. For 2025 the 0% rate applies to single filers with taxable income up to $48,350. Land held one year or less is taxed as ordinary income. Higher earners can also owe the net investment income tax. See IRS Topic 409.

Kentucky taxes individual income at a flat rate: 4% for 2025 and 3.5% for tax years starting on or after January 1, 2026. A gain on land is part of that income. See KRS 141.020 and the 2026 withholding formula.

The closing agent usually reports the sale to the IRS on Form 1099-S. Vacant land is reportable real estate. See the Form 1099-S instructions. This page is general information, not legal or tax advice. Rules change, so confirm with the office named or a tax professional.

How selling to a cash buyer changes your costs

On a listed sale, the seller often pays an agent commission, part of the closing fee, the title policy and any transfer tax custom puts on the seller. Those costs come out of your proceeds.

When you sell your Kentucky land to EasyLotBuyer, there are no fees or commissions and we pay the closing costs. We make a cash offer within 24 hours and can close in as few as 7 days. If the land has back taxes, they are paid at closing from the sale. Capital gains tax is still yours, because it depends on your own tax situation.

• No agent commission
• We pay closing costs
• Back taxes paid at closing from the sale
• We buy land with liens, title issues or no road access, and from heirs and estates