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Taxes & Permits

The Kentucky KYU license: who needs it and how to file

Kentucky taxes heavy trucks for every mile they drive on its roads, wherever the carrier is based. The license is free and quick to get. The quarterly returns are where carriers get caught.

The KYU tax in numbers

2.85 ¢/mileKYU weight-distance tax rate
59,999 lbsThe tax applies above this weight
$40 / 10 daysTemporary KYU permit, per truck
$500Penalty for a missed return
Sources: KRS 138.655, 138.660, 138.665, and 138.715; Kentucky Transportation Cabinet, Division of Motor Carriers.

A KYU license is Kentucky's weight-distance tax account. You need one before running any truck with a combined licensed weight over 59,999 pounds on Kentucky roads. The license is free, the tax is 2.85 cents per Kentucky mile, and a return is due every quarter, even when you drove zero Kentucky miles.

Kentucky is easy to cross and easy to forget. Its weight-distance tax reaches heavy trucks based in any state, and the returns are due every quarter whether or not a truck entered Kentucky.

This guide covers who needs a KYU license, when a temporary permit is enough, how to apply and file, and how to recover an account that has lapsed.

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8 chapters. Select one to jump to it.

01A free license, a steady tax
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Generated with AI text-to-speech from this article's key insights, in order, rather than reading it word for word. Chapter times come from a transcript of the audio. The article itself was written and reviewed by the Simplex Group team.

Tractor-trailer on a divided highway through Kentucky horse country lined with black plank fences
Every heavy-truck mile on Kentucky roads is taxable, whether the carrier is based in Kentucky or three states away.
The Short Version

Key takeaways

Over 59,999 pounds on Kentucky roads

The tax applies to any carrier whose truck crosses that weight on a Kentucky public highway, wherever the carrier is based.

Actual weight counts, not just the plate

Combined licensed weight is the greater of your declared registration weight and the heaviest combined weight you actually run.

The license is free and issued online

The KYU number appears on screen when you finish the online application. It is tied to your USDOT number, with no physical license.

2.85 cents a mile, every quarter

Returns are due by the last day of the month after each quarter, and a zero-mile return is still required.

A missed return costs $500

Plus 20% of any tax due and interest, and Kentucky can cancel the license.

Occasional trips can use a permit

A temporary KYU permit costs $40 per truck and covers 10 consecutive days.

The Tax

What is a KYU license?

A KYU license is the tax account Kentucky uses to collect its weight-distance tax. Under KRS 138.660(3), carriers pay 2.85 cents for every mile a vehicle with a combined licensed weight over 59,999 pounds travels on Kentucky public highways.

The Kentucky Transportation Cabinet's Division of Motor Carriers issues the license and collects the returns. The license itself is free. What you pay is the mileage tax, every quarter.

There is no physical license. Your KYU number is tied electronically to your USDOT number, and you only need to display it on the truck if you are leased to another carrier and run under its DOT authority.

Is KYU the same as IFTA?

No. IFTA is a fuel tax based on the fuel a truck uses in each jurisdiction. KYU is a highway-use tax based only on Kentucky miles. You cannot pay KYU on your IFTA return, and a truck over 59,999 pounds owes both. For the fuel side, see our guide to filing your quarterly IFTA return.

Kentucky is one of several states that tax heavy trucks by weight and miles. Our truck permits overview maps the others, and our New Mexico truck permits guide covers the closest equivalent in the Southwest.

Who It Covers

Who needs a KYU license?

You need a KYU license before you run a vehicle with a combined licensed weight over 59,999 pounds on any Kentucky public highway. Where your company is based does not matter: a carrier from another state that runs Kentucky is in scope the same way a Kentucky fleet is.

The license has to be in place before the truck uses Kentucky roads. For occasional runs, a temporary permit can replace it, as covered below.

How Kentucky measures combined licensed weight

Under KRS 138.655, combined licensed weight is the greater of two numbers for the current registration period:

  • The declared combined maximum gross weight of the power unit and anything it tows, for registration
  • The highest actual combined gross weight of the power unit and towed unit when it runs on Kentucky highways
An honest caveat. Registering a truck at 59,999 pounds or less does not settle the question on its own. If the truck actually runs heavier than that on Kentucky highways during the registration period, it is in scope for KYU.

Who is exempt from KYU?

Farm-plated vehicles are exempt from the KYU tax. The statute excludes vehicles that qualify as farm vehicles under Kentucky law or under another state's law, and Kentucky's permit FAQ describes the exemption as farm-plated vehicles hauling their own products.

Trucks at or under 59,999 pounds combined licensed weight owe no KYU. They may still need IFTA, which starts at over 26,000 pounds or three or more axles.

Leased owner-operators

If you are leased to another carrier and run under its DOT authority, you set up your Kentucky portal profile as a Registrant rather than a Motor Carrier. This is also the one case where the KYU number has to be displayed on the vehicle.

Occasional Trips

Do you need a KYU license or a temporary permit?

If your trucks only pass through Kentucky now and then, you can buy a temporary KYU permit per truck instead of holding a license. It costs $40, covers one vehicle for 10 consecutive days, and is issued in lieu of the KYU tax for that trip.

KYU license vs. temporary KYU permit, per KRS 138.665 and Kentucky's Division of Motor Carriers.
KYU licenseTemporary KYU permit
CostFree to obtain$40 per truck, plus a 4% card processing fee
CoversEvery qualified vehicle in your inventory, until canceledOne vehicle (one VIN) for 10 consecutive days
Tax2.85 cents per Kentucky mile, on quarterly returnsIssued in lieu of the KYU tax
PaymentCredit card or ACH, in the Motor Carrier PortalMajor credit cards only

Do the math before you choose. $40 buys about 1,404 miles of KYU tax at 2.85 cents a mile, so the permit is rarely the cheaper option per mile. What it buys is not having a KYU account to keep current. Once Kentucky becomes a regular lane, the license usually makes more sense.

Your federal credentials must be active first. Kentucky will not sell a temporary permit until your USDOT number and MC authority have loaded into its system, which generally takes 24 to 48 hours. The same site sells 10-day Kentucky temporary IFTA permits; our temporary fuel permit guide explains how those work.

Step by Step

How do you apply for a KYU license?

You apply online in the Kentucky Transportation Cabinet's Motor Carrier Portal, and the KYU number is issued on screen when you finish. Have your FEIN, USDOT number, and each truck's plate, state of registration, VIN, unit number, year, make, and gross weight ready.

Step 1: Set up a KYID account

First-time users need a KYID account, Kentucky's state sign-in. The 2026 registration guide still calls it the Kentucky Online Gateway.

Step 2: Create your portal profile

Choose Motor Carrier if you run under your own DOT authority, or Registrant if you are leased on. Enter your taxpayer ID (US carriers select FEIN) and your USDOT number.

Step 3: Apply and add every qualified vehicle

Under KYU Online, confirm your vehicles are registered over 59,999 pounds, choose the permanent license, and add each qualified vehicle. Kentucky can cite trucks that are missing from your inventory. You update the inventory online in the same portal.

Step 4: Confirm and save your KYU number

Review the details, confirm, and accept the terms. Your KYU number appears on the next screen. Save a copy with your other credentials.

If the online application fails for technical reasons, Kentucky still accepts the paper TC 95-1 Kentucky Trucking Application by mail or email, but it takes 10 to 14 business days. Kentucky lists applying before your MC authority is fully active with FMCSA as a common mistake.

Every Quarter

How do you file KYU quarterly returns?

You file and pay a KYU return every calendar quarter through KYU E-File in the Motor Carrier Portal. Under KRS 138.685, it is due by the last day of the month after the quarter ends. File even if no truck entered Kentucky: a zero-mile return is what keeps the account in good standing.

Upcoming KYU return deadlines under KRS 138.685.
QuarterMiles drivenReturn due
Q3 2026July to SeptemberOctober 31, 2026
Q4 2026October to DecemberJanuary 31, 2027
Q1 2027January to MarchApril 30, 2027
Q2 2027April to JuneJuly 31, 2027

Filing opens on the first day after each quarter. October 31, 2026 is a Saturday and January 31, 2027 is a Sunday, so file on the business day before rather than counting on an extension.

How to calculate the KYU tax

Multiply the Kentucky miles your qualified vehicles drove in the quarter by $0.0285. For example, 1,000 miles is $28.50, 5,000 miles is $142.50, and 20,000 miles is $570.00. You pay by credit card or ACH, and the financial institution's processing charge is added to the tax.

Keeping records and amending returns

Keep mileage records, vehicle types, weights, and axle counts, and fuel records for five years. If you cannot produce them when asked, Kentucky can estimate your tax and assess you on the estimate (KRS 138.680).

To increase reported miles on a filed return, amend it yourself in KYU E-File. To decrease them, you have to contact the Division of Motor Carriers. Our trucker tax team can file Kentucky returns on the same calendar as your IFTA.

Hubodometer mounted on the center hub of a semi-trailer wheel in a gravel truck yard
The tax is only as good as the miles behind it, and Kentucky can estimate your bill if the records are missing.
Penalties

What happens if you miss a KYU return?

A missed return costs more than the tax. Under KRS 138.715, a late return or payment carries a penalty of 20% of the tax plus interest, and failing to file a required report carries a $500 penalty. Kentucky's KYU page warns that skipping even a zero-mile return brings a penalty, interest, and a $500 revocation fee.

Kentucky can also cancel the license for failing to file or pay (KRS 138.675), and it may refuse a new license to anyone whose license was previously revoked for cause (KRS 138.665).

If you had a good reason, explain it to the cabinet in writing. It may reduce the 20% penalty to 5%, or to 1% for a first violation within 12 months.

How to reinstate a KYU account

File every return that is due and pay every bill that is due in the Motor Carrier Portal. Once all filings and payments are in, the account goes back to active. Kentucky's reinstatement instructions walk through the screens.

How to close a KYU account

If you no longer run trucks over 59,999 pounds in Kentucky, close the account rather than letting returns lapse. Bring all filings and fees current, then answer Yes to Ceased Operations on your final return, even if you stop mid-quarter. Afterwards, delete your vehicle inventory in the portal.

Forgot the Ceased Operations step? Email the Division of Motor Carriers with your KYU number to request the closure.

How Simplex Helps

How Simplex helps with your KYU license

The license takes minutes. Keeping it in good standing takes a return every quarter. We help with both, and with the credentials Kentucky checks first.

01

Quarterly weight-distance returns

Our trucker tax preparation team handles weight-distance taxes for Kentucky, New York, New Mexico, and Oregon, alongside IFTA fuel taxes and Form 2290.

02

Trip and temporary permits

Only in Kentucky now and then? Our trucking permits team handles trip and temporary fuel permits, so each unit is covered before it crosses the state line.

03

The credentials that come first

Kentucky won't issue credentials until your federal ones are active. Our authority packages cover the USDOT number, MC authority, BOC-3, and UCR.

Talk to Our Team
Your Questions, Answered

Frequently asked questions

Do I need a KYU license if I'm not based in Kentucky?+
Yes. The tax applies to any vehicle over 59,999 pounds combined licensed weight on Kentucky public highways, wherever the carrier is based. For rare trips, a $40 temporary KYU permit covers one truck for 10 consecutive days.
How much does a KYU license cost?+
Nothing. Kentucky charges no fee for a permanent KYU license. You pay the weight-distance tax of 2.85 cents per Kentucky mile on quarterly returns.
How fast can I get a KYU number?+
Right away if you apply online through the Motor Carrier Portal: the number is issued when you complete the application. A paper TC 95-1 application sent by mail or email takes 10 to 14 business days.
Do I have to file a KYU return if I didn't drive in Kentucky?+
Yes. Kentucky requires a return every quarter for all qualified vehicles, regardless of travel. Filing zero miles avoids a penalty, interest, and a $500 revocation fee.
Is KYU the same as IFTA?+
No. IFTA is a fuel tax, and KYU is a Kentucky tax on miles. You cannot pay KYU on your IFTA return, and a truck over 59,999 pounds owes both.
Do I need to display my KYU number on the truck?+
Usually not. There is no physical KYU license, and the number is tied to your USDOT number. The exception is a truck leased to another carrier and running under that carrier's DOT authority.
Sources & Author

Where this information comes from

The requirements below come from the Kentucky Revised Statutes and the Kentucky Transportation Cabinet's Division of Motor Carriers, checked on September 24, 2026.

SG

Written by

Simplex Group

Permits & Fuel Tax Team, Simplex Group

Reviewed for technical accuracy by a Simplex permitting manager before publication. Simplex has registered and filed permits and fuel taxes for interstate carriers across all 50 states for more than 20 years.

Published · Updated

Before October 31

A zero-mile return is still a return

The KYU tax is small per mile. The penalty for a skipped quarter is not, and a revoked license can make it harder to get a new one.

If you want your Kentucky returns filed on the same calendar as IFTA and your other state taxes, talk to our team.

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