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How to Sell a Boat Privately in Kentucky (2026)

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Reviewed against state DMV requirementsLast reviewed: May 20266 min readEditorial policy
Selling a boat privately in Kentucky requires a written bill of sale documenting the HIN, engine details, and the agreed price. The buyer presents the bill of sale to Kentucky DMV to register the vessel within 15 days of the sale. Kentucky charges 6% sales/use tax.
Titling agencyKentucky DMV
Transfer deadline15 days from sale
Sales / use tax6% (Motor vehicle usage tax applies to all sales)
Bill of sale notaryNot required
Lien release formTC 96-132

How to Sell a Boat Privately in Kentucky — 8 Steps

  1. 1Locate the HIN — the 12-character hull identification number is stamped on the starboard (right) transom on all boats manufactured after 1972. Kentucky requires this on every bill of sale.
  2. 2Determine registration class — boats under 26 ft register with Kentucky DMV only. Boats 26 ft+ may need USCG documentation (federal title) in addition to state registration. Check vessel length and use.
  3. 3Clear any liens — if the boat was financed, request a payoff and lien release letter. Kentucky uses TC 96-132.
  4. 4Gather documentation — current Kentucky registration card, state title (if titled), USCG documentation (if applicable), trailer title, engine serial number records.
  5. 5Price the vessel — check NADA Guides (boats), BUCValu, or recent Kentucky dealer comps. Factor in trailer condition, engine hours, and recent service.
  6. 6Complete the bill of sale — HIN, vessel make/year/length, engine make/model/serial, trailer VIN (if included), sale price, sale date, both parties' full legal names and addresses.
  7. 7Sign the title or registration — endorse the back of the Kentucky registration or title. For USCG-documented vessels, complete Form CG-1340 (notarized).
  8. 8Notify Kentucky DMV — buyer must register within 15 days of the sale. Seller files release of ownership with Kentucky DMV to remove liability for future fines.

Kentucky lien release procedure

  1. Obtain Form TC 96-132 from the Kentucky Transportation Cabinet or the lienholder.
  2. Lienholder completes and signs TC 96-132 releasing the lien.
  3. Submit TC 96-132 with the existing title and title application at a county clerk's office.
  4. Pay the title fee and receive a clean Kentucky title.

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Frequently Asked Questions — Kentucky

Do I need a bill of sale to sell a boat in Kentucky?

Yes. Kentucky requires a written bill of sale for private boat transfers to document the hull identification number (HIN), engine details, sale price, and both parties' signatures. The buyer needs the bill of sale to register the vessel with Kentucky DMV.

What is the Kentucky boat title transfer deadline?

Kentucky requires the buyer to transfer registration within 15 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties.

Is sales tax owed on a private boat sale in Kentucky?

Kentucky charges 6% sales/use tax on private boat sales. Motor vehicle usage tax applies to all sales The buyer typically pays tax at the registration office when registering with Kentucky DMV.

Do I need a notary for a Kentucky boat bill of sale?

Kentucky does not require notarization for a private boat bill of sale. However, USCG-documented vessels (26+ feet) require notarization on Form CG-1340 regardless of state.

How does a buyer register a boat purchased privately in Kentucky?

The buyer takes the signed bill of sale and endorsed title (or prior registration) to Kentucky DMV and pays the registration fee plus 6% sales/use tax. Transfer must be completed within 15 days of the sale date.

Source: Kentucky DMV · Last verified 2026-05-07

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