By the TruckerNavi compliance team, led by Dmitry Borovoy, a New Jersey-licensed insurance producer and author of "Safety Manager: From Zero to Expert".
Short answer: KYU is Kentucky's weight distance tax license, not a fuel tax. You need it if you run Kentucky highways with a combined licensed weight greater than 59,999 pounds, which every tractor-trailer plated at 80,000 already is. The rate is $0.0285 per Kentucky mile under KRS 138.660; both numbers sit on the state's Kentucky Weight Distance (KYU) page. The permanent number is free, applied for online through the Motor Carrier Portal. The return is quarterly regardless of travel: a quarter you never entered the state is still filed, at zero miles. An empty trailer changes nothing, because the threshold is licensed weight, not cargo. Miss a report and KRS 138.715(4) sets $500 per offense. For a single run, Kentucky sells a trip permit at a statutory $40.
The tax is not what costs people money. The calendar is. One pass down I-65 through Louisville is roughly 137 Kentucky miles, about four dollars of tax. The expensive part is the license you opened for that load and forgot, because the filing duty attaches to the license, not to your trips.
Kentucky puts it in one sentence: KYU is a tax license issued for all carriers traveling on Kentucky roadways with a combined license weight greater than 59,999 pounds. All carriers means all: the tax follows the highway, not your corporate address, so an LLC in New Jersey, Illinois or Florida is inside it. Traveling on Kentucky roadways means one mile is enough, with no free first trip and no exemption for through traffic.
Two carve-outs. Farm-plate vehicles are exempt, and KRS 138.655(6)(d) excludes farm vehicles under KRS 186.050(4). Leased on under another carrier's USDOT authority, you register in the portal as a Registrant, not a Motor Carrier. Building the business in Kentucky rather than crossing it? Start here: how to start a trucking company in Kentucky.
Combined licensed weight is a registration concept, not a scale reading. KRS 138.655(2) defines it as the greater of two figures: the declared combined maximum gross weight of the vehicle and any towed unit for registration purposes in the current period, or the highest actual combined weight operated during it. A plate declared at 80,000 pounds stays over the line all year. Kentucky states the same boundary two ways: "greater than 59,999 pounds" on the KYU page, "60,000 lbs. and above" on the Credentials page. Nothing falls in between.
| Credential | Who it is for | Threshold | Frequency | Filed where |
|---|---|---|---|---|
| KYU (weight distance) | Anyone on Kentucky highways, wherever the company sits | Combined licensed weight over 59,999 lbs | Quarterly, zero-mile quarters too | Motor Carrier Portal |
| IFTA | Interstate carriers, licensed by the base state | Over 26,000 lbs or 3 or more axles | Quarterly | Base state, not Kentucky unless based there |
| KIT (Kentucky intrastate tax) | Kentucky-based carriers that never leave | 26,001 lbs or more, or 3 or more axles | Quarterly, zero-mile quarters too | Motor Carrier Connect |
| IRP (apportioned plates) | Interstate carriers in two or more jurisdictions | Over 26,000 lbs or 3 or more axles | Annual renewal | Your base jurisdiction |
It counts. Neither half of the tax looks at cargo: the threshold is licensed weight fixed by registration, the base is miles on Kentucky public highways. Deadheading Nashville to Cincinnati generates the same taxable miles as the same run at 79,800. The one reduction is off-highway mileage, and 601 KAR 1:201 Section 3(8) prices it: settlement sheets plus records of where the vehicle entered and left public highways.
Two dates per quarter, and people mix them up. The date the portal opens is published by the state: April 1, July 1, October 1, January 1. The date the return is due comes from KRS 138.685(2), on or before the last day of the next succeeding calendar month after the quarter. The window is exactly one month wide.
| Quarter | Period covered | Filing opens | Due date |
|---|---|---|---|
| Q1 | January 1 to March 31 | April 1 | April 30 |
| Q2 | April 1 to June 30 | July 1 | July 31 |
| Q3 | July 1 to September 30 | October 1 | October 31 |
| Q4 | October 1 to December 31 | January 1 | January 31 |
Filing and payment are online only, by credit card or ACH: KRS 138.685(1) requires both through the motor carrier portal. KYU E-File amends a return upward on your own; decreasing reported miles requires the Division of Motor Carriers.
Yes, and this question causes more Kentucky revocations than the tax does. The obligation belongs to the license, not to the truck's movements: while the account is open, four returns a year are due, and a quarter with no Kentucky travel is filed at zero. 601 KAR 1:200 Section 7(1)(c) requires a KYU licensee with no operations during the reporting quarter to file anyway. The paper form behind the electronic filing is TC 95-101.
IFTA demands the same rhythm on the same calendar: see the IFTA quarterly filing process, step by step. One recurring calendar entry, four dates, one line under them: miles or no miles, the return goes in.
There is no application fee. Kentucky's FAQ states there is no fee to obtain a permanent KYU tax license number, though you still owe the quarterly mileage tax. The steps:
Online and on paper are two different speeds. Kentucky issues KYU numbers upon completion of the online application, so the number is on the confirmation screen the same minute. The 7 to 14 business days in the state FAQ is how long an incoming application that goes through review takes, and an emailed or mailed TC 95-1 takes 10 to 14 business days. Applications sent before the FMCSA certificate of authority is active get rejected, one inactive credential rejects the whole file, and UCR must be paid first. 601 KAR 1:200 Section 4(1) also requires the application prior to operating in Kentucky. If the load is tomorrow, the bridge is the temporary KYU permit sold per truck through Kentucky Motor Carrier Permits, at the statutory $40 trip permit fee under KRS 138.665(1)(b); the portal shows the term and amount at purchase. We handle state permits: permits, from $200.
One inconsistency to know about. The state 2026 KYU registration guide says you do not have to display the KYU number on the vehicle unless you are leased to another carrier and operating under their DOT authority. The regulation has not caught up: 601 KAR 1:200 Section 4(5) still requires a KYU licensee to display the KYU number on each vehicle subject to the tax in the manner required by 49 CFR Part 390.21. Follow the 2026 guide, keep a printout of the KYU confirmation in the cab for the inspector, and make sure the door carries the USDOT number of whoever is responsible for safety.
Kentucky punishes two different failures and carriers assume they are one. Not filing the report is a flat $500 per offense under KRS 138.715(4). Not paying the tax is 20 percent plus interest at the rate defined in KRS 131.010(6), under KRS 138.715(1). There is a relief valve: KRS 138.715(2) lets a licensee who submits the reasons in writing have the penalty modified to 5 percent, reducible to 1 percent for a first violation within twelve months.
| What happened | What follows | Authority |
|---|---|---|
| Report not filed on time | $500 for any offense, and you can still be made to file | KRS 138.715(4) |
| Tax not paid on time | 20 percent plus interest from the date due | KRS 138.715(1) |
| Written explanation submitted | Penalty may drop to 5 percent, or 1 percent on a first violation in 12 months | KRS 138.715(2) |
| Collection goes through the courts | An additional 20 percent | KRS 138.715(3) |
| No return filed at all | The department determines the liability after an investigation | KRS 138.715(3); 601 KAR 1:200 Sec. 9 |
| Three late quarters out of sixteen consecutive | A bond is required, proved on notarized form TC 95-201 | 601 KAR 1:200 Sec. 6(1)(a), 6(4) |
| License cancelled | Bond required to get it back; a new license may be refused after a revocation for cause | 601 KAR 1:200 Sec. 13(5); KRS 138.665(3)(b) |
Cancellation has the long tail, and the two terms are worth keeping apart. 601 KAR 1:200 Section 13 is headed License Cancellation, Refusal, and Reinstatement, and Section 13(2) lists the grounds on which a license shall be cancelled: improper use of the license or decal, failure to file when due, failure to pay taxes owed, failure to produce records. Revoked for cause is the wording of a different rule, KRS 138.665(3)(b), and that one is about the next license: it lets the cabinet refuse a license to anyone previously revoked for cause, or where the application is a subterfuge for the real party in interest, which is what a fresh LLC looks like. The state does not cancel silently: Section 13(3) requires notice of the pending cancellation and an offer of an administrative hearing, so the letter to the address on the account is the moment to act, not the moment to file the new LLC. Note what is absent above: federal dollar figures, because KYU is a state tax.
Four acronyms, four questions. KYU taxes distance. IFTA taxes fuel. KIT is the fuel tax for carriers who never leave Kentucky. IRP is registration, not tax. Kentucky draws the line itself: you cannot pay for KYU on your IFTA tax form, IFTA is based on fuel consumed in a jurisdiction, KYU is a highway usage tax based purely on Kentucky mileage, and over 59,999 pounds you pay both.
The other half of the confusion sits on the Kentucky IFTA page: if you are not based in Kentucky, you will not have a Kentucky IFTA license, you will have a KYU license. Your IFTA license comes from your base jurisdiction and never touches KYU. KIT most out-of-state carriers can ignore: Kentucky-based only, 26,001 pounds or three axles, quarterly, same zero-mile rule, same $500 revocation fee.
For how the layers stack, see IRP vs IFTA vs NY HUT vs Form 2290, and IRP registration step by step. Kentucky is not the only state charging a road tax on top of IFTA: New York runs a highway use tax with a decal and form MT-903, Oregon a weight-mile tax on an ODOT account, New Mexico a weight distance tax with its own permit. One more line from the state list of common mistakes: the Unified Carrier Registration has to be paid before you submit an application for Kentucky credentials.
Kentucky asks KYU licensees to keep records longer than IFTA does: 601 KAR 1:201 Section 3(9)(a) sets five years from the filing date, while IFTA and KIT fuel records are held four. Use the longer number as your default.
| What to keep | How long | Authority |
|---|---|---|
| Vehicle type, declared gross weight, weigh bills | 5 years from the filing date | 601 KAR 1:201 Sec. 3(8), 3(9)(a) |
| Kentucky mileage by unit: odometer at start and end, route, dates, origin and destination, trip total | 5 years | 601 KAR 1:201 Sec. 3(8) |
| Bills of lading | 5 years | 601 KAR 1:201 Sec. 3(8) |
| Off-highway miles: settlement sheets, entry and exit points | 5 years | 601 KAR 1:201 Sec. 3(8) |
| Lease and supplemental agreements, both parties | Long enough to show who owes the tax | 601 KAR 1:201 Sec. 3(10) |
| IFTA and KIT fuel records | 4 years | 601 KAR 1:201 Sec. 3(7) |
Section 3(12) accepts on-board recording devices instead of manual trip reports where they comply with Section P600 of the IFTA Procedures Manual. An audit does not arrive unannounced: Section 4(3) requires written contact at least 30 days beforehand. Without a protest, Section 4(7)(b) makes an assessment payable with interest within 45 days of the notice; the protest itself goes to the Division of Road Fund Audits within 45 days of the notice of tax due, and that window sits in Section 5(1)(b).
Closing. All filings up to date, all fees paid, and on the last filing answer "Yes" to the Ceased Operations question. Kentucky emails a confirmation or a denial with the reason. Closing mid-quarter does not excuse the return: that filing still has to be completed with Ceased Operations selected. Forgot the box? Email tax.dmc@ky.gov with your KYU number. The Going Out of Business page adds that the system keeps one vehicle as a placeholder, that failing to notify the state about a cancellation brings a delinquency fee, and that cancelling one license does not cancel the others. A cash bond is refunded on form TC 95-616.
Reinstating. Pay all fees due, file all returns due, and the account goes back to Active. For any cancelled license, 601 KAR 1:200 Section 13(5) adds conditions: adequate records, reports for every missed period, all taxes, penalties and interest paid, and a bond under Section 6. We do this end to end, reinstatements included: turnkey, price on request. Questions about the tax itself go to tax.dmc@ky.gov, and the Division of Motor Carriers answers at (502) 564-1257, Monday to Friday, 8:00 to 16:30 Eastern.
KYU is not a one-time errand. It is four dates a year that are easy to lose between loads, and the state charges $500 for each one you miss. TruckerNavi opens the KYU number, puts every qualified truck into the inventory and files the quarterly returns, zero-mile quarters included, so the license never goes quiet. KYU setup and quarterly filing: turnkey, price on request. State permits and temporary credentials: from $200. Russian and English.
See permits and state credentials →Or just call: (315) 871-0833 · WhatsApp
A KYU number is the tax license for Kentucky's weight distance tax, issued to carriers running Kentucky roadways with a combined license weight greater than 59,999 pounds. Under KRS 138.660 the tax is $0.0285 per Kentucky mile. It is not a fuel tax and not a registration, and it costs nothing: the KYU is tied electronically to your DOT number and no physical license is issued. The 2026 state guide says you do not display the number on the truck unless you run under another carrier DOT authority, while 601 KAR 1:200 Section 4(5) still carries the older display requirement.
Yes, if your combined licensed weight is over 59,999 pounds. The rule covers all carriers traveling Kentucky roadways with no exception for through traffic, so pass-through miles on I-65 or I-75 are taxable. For an occasional run you need not open a permanent license: Kentucky sells a one-time temporary KYU permit per truck, and KRS 138.665(1)(b) sets that trip permit fee at $40.
$0.0285 per mile. Kentucky publishes the rate on its Kentucky Weight Distance page and ties it to KRS 138.660, which computes the tax at two and eighty-five hundredths cents per mile. It does not vary by weight above the threshold, by commodity, or by load. Roughly 137 miles of I-65 across Kentucky comes to about four dollars, so the $500 penalty for a missed report is the real cost.
Online through the Kentucky Motor Carrier Portal. Set up a KYID account first at kyid.ky.gov, then create the portal profile, choosing Motor Carrier under your own USDOT authority or Registrant if leased to another carrier. Enter the company name and address exactly as on your DOT record, list every qualified vehicle with plate, state, full VIN, unit, year, make and gross weight, and submit. The online application issues the number on the confirmation screen; an emailed or mailed TC 95-1 takes 10 to 14 business days, and incoming applications that go through review are processed within 7 to 14.
Nothing. Kentucky's FAQ states there is no fee to obtain a permanent KYU tax license number, though you remain responsible for the quarterly mileage tax. The only state money here is the $40 statutory trip permit fee if you buy a temporary permit instead, plus penalties later. Kentucky asks for money with an application only for for-hire authority.
Yes. The KYU license requires quarterly tax filings regardless of travel. Kentucky's instruction is explicit: if you did not travel during a quarter, you must file zero miles to avoid a penalty, interest, and a revocation fee of $500. 601 KAR 1:200 Section 7(1)(c) requires a licensee with no operations to file anyway. Parking and downtime are irrelevant.
KRS 138.715(4) charges $500 for any offense of failing to file a required report within the time allowed, and each missed quarter is its own offense. Unpaid tax adds 20 percent plus interest. With no return at all, the department determines the liability after an investigation. Failure to file is a listed ground for cancelling the license, and three late quarters out of sixteen triggers a bond.
No, and Kentucky answers this itself: you cannot pay for KYU on your IFTA tax form. IFTA is a fuel tax based on fuel consumed in a jurisdiction and starts at over 26,000 pounds or three or more axles. KYU is a highway usage tax based purely on Kentucky mileage and starts above 59,999 pounds. Over that weight you owe both.
Yes. The threshold is combined licensed weight, which KRS 138.655(2) defines as the greater of the declared combined maximum gross weight for registration purposes in the current period or the highest actual combined weight operated during it. A tractor-trailer plated at 80,000 pounds is over the line all year, loaded or empty, and deadhead Kentucky miles are taxable.
If your combined licensed weight is above 59,999 pounds, the tax applies from the first mile. You need not open a permanent license for a single run: Kentucky sells a one-time temporary KYU permit per truck through the Motor Carrier Permits portal, and KRS 138.665(1)(b) sets the trip permit fee at $40. Once Kentucky runs become regular, the free permanent number is cheaper.
Yes. Kentucky states on its KYU page that you can purchase a one-time temporary KYU permit per truck if you are not making regular trips through the state, and 601 KAR 1:200 Section 10(1) confirms that a motor carrier without a required license may operate on Kentucky highways using a temporary trip permit issued under KRS 138.665. Buy it before you enter the state and keep a copy in the cab. The portal shows the term and the total at purchase.
No, a trailer does not get its own KYU number. The tax is imposed on the motor vehicle operated with a combined licensed weight above 59,999 pounds under KRS 138.660(3), and the trailer's weight is part of that combined figure by the definition in KRS 138.655(2). Power units go into the KYU inventory, not trailers. What the trailer affects is the threshold: a heavier declared combination can push a borderline unit over.
You count miles operated on Kentucky public highways, per vehicle. 601 KAR 1:201 Section 3(8) requires mileage by unit number with beginning and ending odometer readings for each trip, the route, dates, origin and destination points and the trip total. Miles off the public highway system can be excluded, but only with settlement sheets and entry and exit records.
You still file, at zero miles. Kentucky's wording is direct: if you did not travel during a quarter, you must file zero miles to avoid a penalty, interest, and a revocation fee of $500. The statutory penalty behind that is $500 for any offense of failing to file on time, under KRS 138.715(4). Downtime, repairs and a slow season are not grounds to skip a quarter.
Bring all filings up to date, pay all fees, and on the last filing answer "Yes" to the Ceased Operations question. Kentucky emails a confirmation or a denial with the reason. Closing mid-quarter still requires that quarter's filing with Ceased Operations selected. If you forgot the box, email tax.dmc@ky.gov with your KYU number. Failing to notify the state brings a delinquency fee.
Kentucky rules name no direct link between a late KYU return and your apportioned plates, and the plates come from your base state, not from Kentucky. The connection is indirect and slower. Failure to file when due and failure to pay are listed grounds for cancelling the KYU license in 601 KAR 1:200 Section 13(2), Section 13(5) then requires a bond to get the license back, and KRS 138.665(3)(b) lets Kentucky refuse a new license to anyone previously revoked for cause. Kentucky also wants KYU filings and payments current, and IRP in good standing, before it will close an IFTA account.
Read the lease, then set the portal role to match it. A lessor regularly engaged in leasing or renting vehicles without a driver is deemed the licensee under 601 KAR 1:200 Section 5(1)(a). The option to designate which side reports and pays, in Section 5(2) and Section 5(4), is written for the fuel use tax imposed by KRS 138.660(1) and (2), not for the weight distance tax of KRS 138.660(3): for KYU the regulation gives no such choice, and the KYU licensee pays. Your portal role has to match whose USDOT authority the truck runs under: Motor Carrier for your own, Registrant when you are leased on.