Kentucky lets its cities and counties tax car insurance premiums, and the rate depends on where your car is kept. For 2026-27, local premium tax rates on car insurance run from 2% in Bowling Green to 16% in Catlettsburg among the cities that charge one, according to the Kentucky Department of Insurance. Louisville Metro and Lexington charge 5%, the most common rate, and insurers also collect a 1.8% state premium surcharge on car insurance.
When your insurer charges the tax, your policy or bill must show the amount and the city or county it goes to. On a $1,000 premium, a 5% rate adds $50 and Covington’s 12% adds $120. Some places charge nothing: Independence has no local premium tax on car insurance, and Russell’s tax doesn’t apply to it.
2026-27 rates, for premiums collected July 1, 2026, through June 30, 2027. Page reviewed Sept. 29, 2026.
Among the 17 Kentucky cities we cover in depth, Covington has the highest rate on car insurance, 12%, followed by Henderson and Radcliff at 11%. Bowling Green’s 2% is the lowest rate charged, and Independence charges none. Select a city to see its car insurance prices.
Local premium tax on car insurance, 2026-27
Rate for a car kept inside city limits. Louisville and Lexington rates are countywide.
Source: Kentucky Department of Insurance, 2026-27 Local Government Premium Tax Schedule (published April 6, 2026), automobile rates.
In Louisville, Metro’s 5% covers all of Jefferson County, but several dozen small cities inside the county charge their own rates. Where a city’s rate is higher, that’s the rate you pay: Jeffersontown charges 7% and Shively 12.5%. So a Louisville mailing address doesn’t settle it. The tax follows the place where your car is kept.
These rules come from the department’s 2026-27 premium tax bulletin and tax code descriptions.
Taxes are only part of the price
Here’s what the local tax, the largest collection fee an insurer may add and the 1.8% state surcharge come to on a $1,000 premium. The state surcharge isn’t charged on the local tax.
Your insurer may absorb some of these charges instead of billing them to you. Your bill shows what you’re actually charged.
The table lists all 417 places in the department’s 2026-27 schedule: 366 cities, 48 counties, Louisville Metro, Lexington-Fayette and the Louisville Urban Services District. Search it for your city or county. City rates are for a car kept inside city limits, and the notes say when a county tax changes the total.
| City or County: | Type: | Car Insurance Tax Rate (2026-27): | Tax on a $1,000 Premium: | Notes: |
|---|---|---|---|---|
| Adairville | City | 5% | $50 | |
| Albany | City | 10% | $100 | |
| Alexandria | City | 10% | $100 | $5 minimum per policy |
| Allen | City | 6% | $60 | |
| Anchorage | City | 5% | $50 | |
| Anderson County | County | 4% | $40 | Whole county, added to any city tax |
| Arlington | City | 8% | $80 | |
| Ashland | City | 10% | $100 | |
| Auburn | City | 6% | $60 | |
| Audubon Park | City | 9% | $90 | |
| Augusta | City | 8% | $80 | |
| Bancroft | City | 5% | $50 | |
| Barbourmeade | City | 5% | $50 | |
| Barbourville | City | 9% | $90 | |
| Bardwell | City | 9% | $90 | |
| Barlow | City | 7% | $70 | 7% on personal policies, 3% on commercial |
| Beattyville | City | 8% | $80 | |
| Beaver Dam | City | 6.9% | $69 | |
| Bedford | City | 11% | $110 | $5 minimum per policy |
| Beechwood Village | City | 5% | $50 | |
| Bell County | County | 7% | $70 | Unincorporated areas only |
| Bellemeade | City | 5% | $50 | |
| Bellevue | City | 10% | $100 | |
| Bellewood | City | 5% | $50 | |
| Benham | City | 10% | $100 | |
| Benton | City | 7.5% | $75 | |
| Berea | City | 6% | $60 | |
| Berry | City | 7.5% | $75 | |
| Blue Ridge Manor | City | 5% | $50 | |
| Bowling Green | City | 2% | $20 | $5 minimum per policy |
| Bradfordsville | City | 5% | $50 | Updated in the 2026-27 schedule |
| Brandenburg | City | 8% | $80 | |
| Breckinridge County | County | 5% | $50 | |
| Briarwood | City | 5% | $50 | |
| Brodhead | City | 6% | $60 | |
| Broeck Pointe | City | 5% | $50 | |
| Bromley | City | 10% | $100 | |
| Brooksville | City | 7% | $70 | |
| Brownsboro Farm | City | 5% | $50 | |
| Brownsboro Village | City | 5% | $50 | |
| Brownsville | City | 7% | $70 | |
| Buckhorn | City | 7% | $70 | |
| Bullitt County | County | 5% | $50 | |
| Burgin | City | 10% | $100 | |
| Burkesville | City | 10% | $100 | |
| Burnside | City | 9% | $90 | $5 minimum per policy |
| Butler | City | 10% | $100 | |
| Cadiz | City | 8% | $80 | |
| Calhoun | City | 12% | $120 | |
| California | City | 10% | $100 | |
| Calloway County | County | 7% | $70 | Car insurance is the only line it taxes |
| Calvert City | City | 7% | $70 | |
| Cambridge | City | 5% | $50 | |
| Campbell County | County | 10% | $100 | |
| Campbellsburg | City | 12% | $120 | $5 minimum per policy |
| Campbellsville | City | 10% | $100 | |
| Campton | City | 8% | $80 | |
| Caneyville | City | 5.2% | $52 | $5 minimum per policy |
| Carlisle | City | 7.5% | $75 | $5 minimum per policy |
| Carlisle County | County | 4% | $40 | |
| Carrollton | City | 8% | $80 | |
| Carter County | County | 6.5% | $65 | |
| Casey County | County | 6% | $60 | |
| Catlettsburg | City | 16% | $160 | $5 minimum per policy |
| Cave City | City | 8% | $80 | |
| Centertown | City | 6% | $60 | |
| Central City | City | 8% | $80 | |
| Clark County | County | 4% | $40 | |
| Clarkson | City | 5% | $50 | $5 minimum per policy |
| Clay | City | 8% | $80 | |
| Clay City | City | 10% | $100 | |
| Clinton | City | 5.74% | $57.40 | $5 minimum per policy |
| Cloverport | City | 9% | $90 | $5 minimum per policy |
| Coal Run Village | City | 4% | $40 | |
| Cold Spring | City | 10% | $100 | |
| Coldstream | City | 5% | $50 | |
| Columbia | City | 10% | $100 | |
| Corbin | City | 9% | $90 | |
| Corinth | City | 10% | $100 | |
| Corydon | City | 12% | $120 | |
| Covington | City | 12% | $120 | |
| Crab Orchard | City | 9% | $90 | |
| Creekside | City | 5.8% | $58 | |
| Crescent Springs | City | 5% | $50 | |
| Crestview | City | 10% | $100 | |
| Crestwood | City | 10% | $100 | |
| Crittenden | City | 9% | $90 | |
| Crittenden County | County | 3% | $30 | |
| Crofton | City | 10% | $100 | |
| Crossgate | City | 5% | $50 | |
| Cumberland | City | 8% | $80 | |
| Cumberland County | County | 4% | $40 | |
| Cynthiana | City | 9% | $90 | |
| Danville | City | 8% | $80 | |
| Daviess County | County | 6% | $60 | Unincorporated areas only |
| Dawson Springs | City | 10% | $100 | |
| Dayton | City | 11% | $110 | |
| Dixon | City | 5% | $50 | |
| Douglass Hills | City | 5% | $50 | |
| Dover | City | 7% | $70 | |
| Druid Hills | City | 5% | $50 | |
| Dry Ridge | City | 8.5% | $85 | |
| Earlington | City | 10% | $100 | |
| Eddyville | City | 5% | $50 | $5 minimum per policy |
| Edmonton | City | 7% | $70 | |
| Ekron | City | 5% | $50 | City 3%; Meade County’s higher 5% applies, with the city’s share credited |
| Elizabethtown | City | 8% | $80 | |
| Elkhorn City | City | 3% | $30 | |
| Elkton | City | 8% | $80 | $10 minimum per policy |
| Elliott County | County | 6% | $60 | |
| Elsmere | City | 10% | $100 | |
| Eminence | City | 10% | $100 | |
| Erlanger | City | 9.5% | $95 | |
| Evarts | City | 10% | $100 | |
| Ewing | City | 6% | $60 | |
| Falmouth | City | 10% | $100 | |
| Ferguson | City | 6.32% | $63.20 | |
| Fincastle | City | 5% | $50 | |
| Flatwoods | City | 8% | $80 | $5 minimum per policy; Updated in the 2026-27 schedule |
| Fleming County | County | 6% | $60 | |
| Fleming-Neon | City | 5% | $50 | |
| Flemingsburg | City | 6% | $60 | $10 minimum per policy |
| Florence | City | 4% | $40 | Down from 5% in 2025-26 |
| Floyd County | County | 4% | $40 | Whole county; inside a city, the higher of the two rates applies; $10 minimum per policy |
| Fordsville | City | 8% | $80 | |
| Forest Hills | City | 8% | $80 | |
| Fort Mitchell | City | 7% | $70 | $5 minimum per policy |
| Fort Thomas | City | 10% | $100 | |
| Fort Wright | City | 8% | $80 | |
| Fountain Run | City | 5% | $50 | |
| Fox Chase | City | 5% | $50 | |
| Frankfort | City | 9% | $90 | |
| Franklin | City | 9% | $90 | |
| Franklin County | County | 9% | $90 | |
| Fredonia | City | 6% | $60 | |
| Frenchburg | City | 6% | $60 | City 5%; Menifee County’s higher 6% applies, with the city’s share credited |
| Fulton | City | 6% | $60 | Includes Fulton County’s 3% (city 3%); both taxes apply in this county; $5 minimum per policy |
| Fulton County | County | 3% | $30 | Whole county, added to any city tax; $10 minimum per policy |
| Gamaliel | City | 7% | $70 | |
| Georgetown | City | 8% | $80 | |
| Ghent | City | 5% | $50 | |
| Glasgow | City | 5% | $50 | |
| Glencoe | City | 6% | $60 | |
| Glenview | City | 5% | $50 | |
| Glenview Hills | City | 5% | $50 | |
| Glenview Manor | City | 5% | $50 | |
| Goose Creek | City | 10% | $100 | |
| Goshen | City | 10% | $100 | |
| Graymoor-Devondale | City | 5% | $50 | |
| Grayson | City | 10% | $100 | Updated in the 2026-27 schedule |
| Green County | County | 3% | $30 | |
| Green Spring | City | 6.75% | $67.50 | |
| Greensburg | City | 10% | $100 | |
| Greenup | City | 8% | $80 | $5 minimum per policy |
| Greenville | City | 11% | $110 | |
| Guthrie | City | 8% | $80 | |
| Hanson | City | 10% | $100 | |
| Hardinsburg | City | 6% | $60 | |
| Harlan | City | 8% | $80 | |
| Harrodsburg | City | 10% | $100 | |
| Hartford | City | 10% | $100 | |
| Hawesville | City | 8% | $80 | |
| Hazard | City | 5% | $50 | |
| Hebron Estates | City | 5% | $50 | |
| Henderson | City | 11% | $110 | 10% on vehicles that haul property; $5 minimum per policy |
| Henderson County | County | 4.875% | $48.75 | Down from 9.75% in 2025-26 |
| Heritage Creek | City | 5% | $50 | |
| Hickman | City | 7% | $70 | Includes Fulton County’s 3% (city 4%); both taxes apply in this county |
| Hickory Hill | City | 5% | $50 | |
| Highland Heights | City | 10% | $100 | |
| Hills and Dales | City | 5% | $50 | |
| Hillview | City | 7% | $70 | |
| Hindman | City | 4% | $40 | City 3%; Knott County’s higher 4% applies, with the city’s share credited |
| Hodgenville | City | 10% | $100 | |
| Hollow Creek | City | 5% | $50 | |
| Hopkins County | County | 10% | $100 | Whole county; inside a city, the higher of the two rates applies |
| Hopkinsville | City | 8.5% | $85 | |
| Horse Cave | City | 8% | $80 | |
| Houston Acres | City | 7% | $70 | |
| Hunters Hollow | City | 10% | $100 | |
| Hurstbourne | City | 8% | $80 | |
| Hurstbourne Acres | City | 5% | $50 | |
| Hustonville | City | 9% | $90 | |
| Hyden | City | 4% | $40 | |
| Indian Hills | City | 5% | $50 | |
| Irvine | City | 10% | $100 | $5 minimum per policy |
| Irvington | City | 10% | $100 | |
| Island | City | 11% | $110 | |
| Jackson | City | 8.5% | $85 | |
| Jackson County | County | 5% | $50 | |
| Jamestown | City | 10% | $100 | |
| Jeffersontown | City | 7% | $70 | |
| Jeffersonville | City | 4% | $40 | $5 minimum per policy |
| Jenkins | City | 6% | $60 | |
| Jessamine County | County | 9% | $90 | Unincorporated areas only |
| Junction City | City | 12% | $120 | |
| Kenton County | County | 8% | $80 | Unincorporated areas only; Crestview Hills, Edgewood, Fairview, Independence and Kenton Vale are exempt; $5 minimum per policy |
| Kevil | City | 3% | $30 | Updated in the 2026-27 schedule |
| Kingsley | City | 5% | $50 | |
| Knott County | County | 4% | $40 | Whole county; inside a city, the higher of the two rates applies |
| Kuttawa | City | 5% | $50 | $5 minimum per policy |
| La Center | City | 3% | $30 | $25 minimum per policy |
| La Grange | City | 10% | $100 | |
| Lafayette | City | 7% | $70 | |
| Lakeside Park | City | 8% | $80 | |
| Lancaster | City | 10% | $100 | |
| Langdon Place | City | 5% | $50 | |
| Lawrenceburg | City | 12% | $120 | Includes Anderson County’s 4% (city 8%); both taxes apply in this county |
| Lebanon | City | 10% | $100 | |
| Lebanon Junction | City | 5% | $50 | |
| Lee County | County | 8% | $80 | $5 minimum per policy |
| Leitchfield | City | 8% | $80 | $5 minimum per policy |
| Lewis County | County | 6% | $60 | |
| Lewisburg | City | 6% | $60 | $5 minimum per policy |
| Lewisport | City | 10% | $100 | |
| Lexington-Fayette Urban County | Urban county government | 5% | $50 | One tax covers all of Fayette County; $5 minimum per policy |
| Liberty | City | 8% | $80 | |
| Lincolnshire | City | 5% | $50 | |
| Livermore | City | 10% | $100 | |
| Livingston | City | 7% | $70 | |
| London | City | 7% | $70 | $5 minimum per policy |
| Loretto | City | 3% | $30 | $5 minimum per policy |
| Louisa | City | 8% | $80 | $25 minimum per policy |
| Louisville Metro (Jefferson County) | Metro government | 5% | $50 | Applies across Jefferson County; a city inside the county with a higher rate charges its own rate |
| Louisville Urban Services District | Taxing district | 5% | $50 | Former city of Louisville; Metro’s tax return form lists this district separately only for health insurance |
| Loyall | City | 9.2% | $92 | |
| Ludlow | City | 12% | $120 | |
| Lynch | City | 8% | $80 | |
| Lyndon | City | 8% | $80 | |
| Lynnview | City | 5% | $50 | |
| Madison County | County | 5% | $50 | |
| Madisonville | City | 10% | $100 | |
| Manchester | City | 4% | $40 | |
| Manor Creek | City | 5% | $50 | |
| Marion | City | 4% | $40 | |
| Martin | City | 9% | $90 | |
| Maryhill Estates | City | 5.75% | $57.50 | |
| Mason County | County | 7% | $70 | Whole county except Maysville |
| Mayfield | City | 9% | $90 | $5 minimum per policy |
| Maysville | City | 8% | $80 | |
| McCracken County | County | 4.9% | $49 | Updated in the 2026-27 schedule |
| McHenry | City | 5% | $50 | |
| McKee | City | 10% | $100 | |
| Meade County | County | 5% | $50 | Whole county; inside a city, the higher of the two rates applies |
| Meadow Vale | City | 5% | $50 | |
| Meadowbrook Farm | City | 5% | $50 | |
| Meadowview Estates | City | 5% | $50 | |
| Melbourne | City | 10% | $100 | $5 minimum per policy |
| Menifee County | County | 6% | $60 | Whole county; inside a city, the higher of the two rates applies |
| Mentor | City | 10% | $100 | |
| Middlesboro | City | 3% | $30 | |
| Middletown | City | 5% | $50 | |
| Midway | City | 9% | $90 | Updated in the 2026-27 schedule |
| Millersburg | City | 12% | $120 | |
| Milton | City | 10% | $100 | City 8%; Trimble County’s higher 10% applies, with the city’s share credited |
| Mockingbird Valley | City | 5% | $50 | |
| Monticello | City | 6% | $60 | $5 minimum per policy |
| Moorland | City | 5% | $50 | |
| Morehead | City | 7.5% | $75 | |
| Morgan County | County | 4.5% | $45 | Unincorporated areas only |
| Morganfield | City | 7% | $70 | |
| Morgantown | City | 8% | $80 | |
| Mortons Gap | City | 10% | $100 | |
| Mount Olivet | City | 5% | $50 | |
| Mount Sterling | City | 10% | $100 | |
| Mount Vernon | City | 4% | $40 | |
| Mount Washington | City | 5% | $50 | |
| Muldraugh | City | 9.5% | $95 | $5 minimum per policy |
| Munfordville | City | 9.2% | $92 | |
| Murray | City | 7.25% | $72.50 | |
| Murray Hill | City | 5% | $50 | |
| Nebo | City | 10% | $100 | |
| New Castle | City | 12% | $120 | |
| New Haven | City | 8% | $80 | $5 minimum per policy |
| Newport | City | 15% | $150 | |
| Nicholas County | County | 7% | $70 | |
| Nicholasville | City | 10% | $100 | |
| Norbourne Estates | City | 5% | $50 | |
| North Middletown | City | 9% | $90 | |
| Northfield | City | 5% | $50 | |
| Nortonville | City | 10% | $100 | |
| Norwood | City | 5% | $50 | |
| Oak Grove | City | 10% | $100 | |
| Oakland | City | 5% | $50 | |
| Old Brownsboro Place | City | 5% | $50 | |
| Oldham County | County | 10% | $100 | |
| Olive Hill | City | 9% | $90 | $5 minimum per policy |
| Orchard Grass Hills | City | 10% | $100 | |
| Owen County | County | 7.5% | $75 | Includes cities in the county |
| Owensboro | City | 10% | $100 | |
| Owingsville | City | 8% | $80 | $5 minimum per policy |
| Owsley County | County | 7% | $70 | |
| Paducah | City | 7% | $70 | |
| Paintsville | City | 8% | $80 | |
| Paris | City | 10% | $100 | |
| Park City | City | 8% | $80 | |
| Park Hills | City | 10% | $100 | |
| Parkway Village | City | 5% | $50 | |
| Pembroke | City | 5.5% | $55 | |
| Perryville | City | 10% | $100 | $5 minimum per policy |
| Pewee Valley | City | 10% | $100 | |
| Pineville | City | 8% | $80 | |
| Pioneer Village | City | 10% | $100 | |
| Plantation | City | 7% | $70 | Updated in the 2026-27 schedule |
| Pleasureville | City | 10% | $100 | $5 minimum per policy |
| Plum Springs | City | 5% | $50 | |
| Powderly | City | 9% | $90 | |
| Powell County | County | 5% | $50 | Whole county; inside a city, the higher of the two rates applies |
| Prestonsburg | City | 8% | $80 | |
| Prestonville | City | 6% | $60 | |
| Princeton | City | 8% | $80 | |
| Prospect | City | 7% | $70 | |
| Providence | City | 7.5% | $75 | |
| Pulaski County | County | 5.5% | $55 | Whole county except Somerset and Burnside; $5 minimum per policy |
| Raceland | City | 13% | $130 | |
| Radcliff | City | 11% | $110 | |
| Ravenna | City | 10% | $100 | |
| Richlawn | City | 5% | $50 | |
| Richmond | City | 8% | $80 | |
| River Bluff | City | 10% | $100 | |
| Riverwood | City | 5% | $50 | |
| Robards | City | 8% | $80 | |
| Robertson County | County | 5% | $50 | |
| Rockcastle County | County | 4% | $40 | |
| Rockport | City | 6% | $60 | |
| Rolling Fields | City | 5% | $50 | |
| Rolling Hills | City | 5% | $50 | |
| Russell | City | None | $0 | Doesn’t tax car insurance |
| Russell Springs | City | 10% | $100 | |
| Russellville | City | 7% | $70 | |
| Ryland Heights | City | 7% | $70 | |
| Sacramento | City | 8% | $80 | |
| Sadieville | City | 10% | $100 | $5 minimum per policy |
| Salem | City | 5% | $50 | $5 minimum per policy |
| Salyersville | City | 8% | $80 | |
| Sanders | City | 5% | $50 | |
| Sandy Hook | City | 9% | $90 | |
| Science Hill | City | 5.5% | $55 | City 5%; Pulaski County’s higher 5.5% applies, with the city’s share credited |
| Scottsville | City | 7% | $70 | |
| Sebree | City | 8% | $80 | $5 minimum per policy |
| Seneca Gardens | City | 5% | $50 | |
| Shelbyville | City | 5% | $50 | |
| Shepherdsville | City | 5% | $50 | |
| Shively | City | 12.5% | $125 | |
| Silver Grove | City | 10% | $100 | |
| Simpsonville | City | 5% | $50 | |
| Slaughters | City | 5% | $50 | |
| Smithfield | City | 6.5% | $65 | |
| Smithland | City | 6% | $60 | |
| Smiths Grove | City | 7% | $70 | |
| Somerset | City | 6% | $60 | $5 minimum per policy |
| South Shore | City | 6% | $60 | |
| Southgate | City | 10% | $100 | |
| Sparta | City | 6% | $60 | |
| Spencer County | County | 3% | $30 | |
| Spring Valley | City | 5% | $50 | |
| Springfield | City | 10% | $100 | Includes Washington County’s 4% (city 6%); both taxes apply in this county |
| Springmill | City | 5% | $50 | |
| St. Charles | City | 10% | $100 | $25 minimum per policy |
| St. Matthews | City | 5% | $50 | |
| St. Regis Park | City | 5% | $50 | |
| Stamping Ground | City | 6% | $60 | |
| Stanford | City | 9% | $90 | |
| Stanton | City | 10% | $100 | |
| Strathmoor Manor | City | 7% | $70 | |
| Strathmoor Village | City | 5% | $50 | |
| Sturgis | City | 12% | $120 | |
| Sycamore | City | 8% | $80 | |
| Taylor Mill | City | 8% | $80 | |
| Taylorsville | City | 7% | $70 | $5 minimum per policy |
| Ten Broeck | City | 5% | $50 | |
| Thornhill | City | 5% | $50 | |
| Todd County | County | 6% | $60 | |
| Tompkinsville | City | 5% | $50 | |
| Trenton | City | 6% | $60 | |
| Trigg County | County | 6% | $60 | |
| Trimble County | County | 10% | $100 | Whole county; inside a city, the higher of the two rates applies |
| Uniontown | City | 12% | $120 | $5 minimum per policy |
| Vanceburg | City | 6% | $60 | |
| Versailles | City | 9% | $90 | |
| Villa Hills | City | 7% | $70 | |
| Vine Grove | City | 3% | $30 | 3% on residents’ private cars, 10% on other auto insurance |
| Walton | City | 5% | $50 | |
| Warren County | County | 2% | $20 | Whole county; inside a city, the higher of the two rates applies; $5 minimum per policy |
| Warsaw | City | 6% | $60 | |
| Washington County | County | 4% | $40 | Whole county, added to any city tax; $10 minimum per policy |
| Watterson Park | City | 5% | $50 | |
| Wayland | City | 8% | $80 | |
| Wayne County | County | 5% | $50 | |
| Wellington | City | 5% | $50 | |
| West Buechel | City | 10% | $100 | |
| West Liberty | City | 10% | $100 | |
| West Point | City | 12% | $120 | |
| Westwood | City | 6% | $60 | |
| Wheatcroft | City | 8% | $80 | |
| Wheelwright | City | 5% | $50 | |
| White Plains | City | 10% | $100 | $25 minimum per policy |
| Whitesburg | City | 5% | $50 | $5 minimum per policy |
| Whitesville | City | 8.9% | $89 | |
| Wickliffe | City | 6.4% | $64 | |
| Wilder | City | 10% | $100 | |
| Wildwood | City | 5% | $50 | |
| Williamsburg | City | 6% | $60 | |
| Williamstown | City | 6.75% | $67.50 | |
| Wilmore | City | 8% | $80 | |
| Winchester | City | 12% | $120 | |
| Windy Hills | City | 5% | $50 | |
| Wingo | City | 5% | $50 | |
| Woodburn | City | 7% | $70 | |
| Woodbury | City | 5% | $50 | |
| Woodland Hills | City | 8% | $80 | |
| Woodlawn | City | 10% | $100 | |
| Woodlawn Park | City | 7% | $70 | |
| Worthington | City | 8% | $80 | |
| Worthington Hills | City | 8% | $80 | |
| Worthville | City | 5% | $50 | |
| Wurtland | City | 8% | $80 |
If your city isn’t in the table, it doesn’t charge its own premium tax for 2026-27. A county tax can still apply if your county is listed and its tax covers cities or unincorporated areas.
99 of the 365 cities that tax car insurance charge 10% or more.
Ready to compare
This guide uses the Kentucky Department of Insurance’s 2026-27 Local Government Premium Tax Schedule (published April 6, 2026), its tax code descriptions and Bulletin 2026-02 (April 22, 2026), plus Kentucky law.
We update this guide when the department publishes a new schedule, usually in the spring, for rates that take effect July 1.
Yes. Kentucky cities, counties, Louisville Metro and Lexington-Fayette can tax insurance premiums, including car insurance. For 2026-27, rates on car insurance run from 2% in Bowling Green to 16% in Catlettsburg among the cities that charge one, and insurers also collect a 1.8% state premium surcharge. Your bill must show the local tax and the jurisdiction that charges it.
Louisville Metro’s rate on car insurance is 5% for 2026-27, and it applies across Jefferson County. Some cities inside the county charge more, such as Jeffersontown at 7% and Shively at 12.5%, and in those cities the higher city rate applies. The tax is based on where your car is principally garaged, which may not match your mailing address.
Lexington-Fayette Urban County’s rate on car insurance is 5% for 2026-27, with a $5 minimum per policy. Lexington and Fayette County share one government, so one tax covers the whole county.
Catlettsburg, at 16% for 2026-27, followed by Newport at 15% and Raceland at 13%. Among the 17 cities we cover in depth, Covington’s 12% is the highest. Bowling Green’s 2% is the lowest rate charged, and some cities, including Independence, charge none.
Yes. Under KRS 136.392, insurers other than life and health insurers, including car insurers, collect a premium surcharge of $1.80 per $100 of premium, or 1.8%, from policyholders. It isn’t charged on the local premium tax, and it goes to the state’s firefighter and law enforcement foundation programs.
Ask your insurer to correct it. The tax is supposed to follow where your car is principally garaged, and insurers can’t use ZIP codes to set it. If you were overcharged, Kentucky law lets you mail your insurer a refund request, and if it doesn’t refund or credit you within 90 days, you have 30 days to ask the Kentucky Department of Insurance to review it.
