Closing costs by state
Closing costs in Kentucky
Closing costs in Kentucky run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $10,055. Kentucky charges a state transfer tax of $0.50 per $500 of value, imposed on the grantor (real estate transfer tax, KRS 142.050), about 0.1% of the price, and the seller customarily pays it.
Last verified ·Sources:apps.legislature.ky.gov·hendersoncountyky.gov
The rules
What Kentucky does differently
- State transfer tax
- $0.50 per $500 of value, imposed on the grantor (real estate transfer tax, KRS 142.050) (about 0.1% of the price at $400,000).
- Who pays it
- Seller, by custom.
- County and city add-ons
- None; no county or city transfer taxes.
- Attorney at closing
- Kentucky requires an attorney to conduct or supervise the closing, so an attorney fee is a normal line on both sides.
- Owner’s title policy
- Who pays the owner’s title policy in Kentucky varies by county or region; it is set by local custom and the contract.
- Notes
- $400 on a $400,000 sale, collected by the county clerk at recording. A licensed attorney must conduct the closing under Kentucky Bar Association opinion KBA U-58. The buyer commonly pays the owner's policy, but it is negotiated.
- apps.legislature.ky.gov — “A tax upon the grantor named in the deed shall be imposed at the rate of fifty cents ($0.50) for each $500 of value”
- hendersoncountyky.gov — “The transfer tax is imposed upon the grantor ... $.50 for each $500 of value or fraction thereof”
Worked example
A $400,000 home in Kentucky, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax follow Kentucky’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Total (2.514% of price) | $10,055 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Owner’s title policy (estimate) | $1,500 |
| Prorated property tax | $1,500 |
| Transfer tax, seller’s share (0.1%) | $400 |
| Total | $25,400 |
Questions
What people ask about Kentucky
- Who pays the transfer tax in Kentucky?
- Kentucky charges a state transfer tax of $0.50 per $500 of value, imposed on the grantor (real estate transfer tax, KRS 142.050), about 0.1% of the price, and the seller customarily pays it.
- Do you need an attorney to close on a house in Kentucky?
- Kentucky requires an attorney to conduct or supervise the closing, so an attorney fee is a normal line on both sides.
- Who pays for the owner’s title policy in Kentucky?
- Who pays the owner’s title policy in Kentucky varies by county or region; it is set by local custom and the contract.
- How much are seller closing costs in Kentucky?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $25,400 for the seller, including $400 of transfer tax, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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