Just Sold My Boat in Kentucky — What’s Next? (2026)
Need Kentucky bill of sale documentation?
If you haven’t generated a Kentucky-compliant bill of sale yet, do it now — your proof-of-sale window closes the moment the buyer leaves.
Start My Kentucky Boat Bill of Sale →Kentucky boat sale facts
| Titling agency | Kentucky DMV ↗ |
| Title transfer deadline | 15 days from sale |
| Release of liability | File with Kentucky DMV within 5 days |
| Buyer’s sales / use tax | 6% (Motor vehicle usage tax applies to all sales) |
| Bill of sale notary | Not required |
| Title fee (buyer pays) | $9 |
| Boat identifier | HIN (Hull Identification Number) |
Your Kentucky boat post-sale checklist
- 1
Keep your signed Kentucky bill of sale
This is your proof that you sold the boat on the sale date. If the buyer gets a ticket, is in an accident, or fails to transfer the title within 15 days from the sale date, the Kentucky bill of sale shields you from liability. Keep both your copy and a scan for at least 5 years.
- 2
File a release of liability with Kentucky DMV
Most Kentucky sellers file this online through Kentucky DMV within 5 days of the sale. Filing removes you from records as the registered owner so any post-sale tickets, tolls, or accidents become the buyer's responsibility, not yours. Kentucky requires the buyer to title the boat within 15 days — your release filing protects you if the buyer misses that deadline.
- 3
Cancel or transfer your boat insurance
Contact your insurer the same day you hand over the keys. Kentucky does not require you to maintain insurance on a vehicle you no longer own, but you must not cancel before the sale is complete. If you are replacing the boat with another, transfer the policy instead — many insurers offer a short grace period to bind coverage on the new vehicle.
- 4
Remove your registration decal and registration decal
In Kentucky, the registration decal stays with the seller, not the boat. Remove the decal before handover and return any current registration to the Kentucky boating authority. The buyer will register the vessel in their name and receive new decals.
- 5
Verify the 15-day title transfer window
Kentucky requires the buyer to retitle the boat at Kentucky DMV within 15 days of the sale date. If you have not received confirmation that the title has been transferred by day 20, contact Kentucky DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.
- 6
Confirm your Kentucky tax obligations (seller's side)
Kentucky charges 6% sales/use tax on private-party boat sales — the buyer pays this at Kentucky DMV when titling. Motor vehicle usage tax applies to all sales. Sellers generally do not owe Kentucky sales tax, but if the boat sold for more than your original purchase price you may owe federal capital gains tax. Consult a tax advisor.
- 7
Watch for liens or loan payoff confirmation
If you had a loan on the boat, confirm the lender received the buyer's payoff and has released the lien on the Kentucky title before you deliver the title. Kentucky uses TC 96-132 as the lien release form — your lender will file this with Kentucky DMV to clear the title record.
Boat-specific note
Boats use a Hull Identification Number (HIN) instead of a VIN — confirm the HIN on the transom matches the title and bill of sale. If the vessel is U.S. Coast Guard documented (5+ net tons, typically 26ft+), file an abstract-of-title transfer with the National Vessel Documentation Center in addition to state registration.
Kentucky lien release procedure
- Obtain Form TC 96-132 from the Kentucky Transportation Cabinet or the lienholder.
- Lienholder completes and signs TC 96-132 releasing the lien.
- Submit TC 96-132 with the existing title and title application at a county clerk's office.
- Pay the title fee and receive a clean Kentucky title.
Frequently Asked Questions — Kentucky
How long do I have to file a release of liability in Kentucky?▾
Kentucky sellers should file a release of liability with Kentucky DMV within 5 days of the sale. Most Kentucky sellers can file this online directly through Kentucky DMV. Filing removes you from records as the registered owner so any post-sale tickets, tolls, or accidents fall on the buyer.
What is the Kentucky title transfer deadline for a boat?▾
Kentucky requires the buyer to title the boat within 15 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties.
Do I owe Kentucky sales tax on the boat I just sold?▾
Kentucky charges 6% sales/use tax on private-party boat sales. Motor vehicle usage tax applies to all sales. The buyer typically pays this at Kentucky DMV when titling — sellers generally owe no Kentucky sales tax on the proceeds. You may owe federal capital gains if you sold for more than the original purchase price.
Does Kentucky require a notary on the boat bill of sale?▾
No. Kentucky does not require notarization for a private boat bill of sale. A signed bill of sale with both parties' full names, addresses, signatures, and the date is sufficient for Kentucky DMV.
How does the buyer register the boat in Kentucky?▾
The buyer brings the signed bill of sale and endorsed title to Kentucky DMV, pays the title fee (~$9) plus 6% sales/use tax, and receives a new Kentucky title in their name. Transfer must be completed within 15 days of the sale date.
What is U.S. Coast Guard documentation and do I need to file anything with the USCG?▾
USCG documentation is a federal title for vessels 5+ net tons (typically 26ft+) used in commerce or international waters. Recreational boats under 26 feet usually do not need USCG documentation — state registration and a bill of sale are sufficient. If your boat IS USCG-documented, file an abstract of title transfer with the National Vessel Documentation Center in addition to state registration.
Where do I find the HIN on my boat?▾
The Hull Identification Number (HIN) is a 12-character serial stamped on the starboard side of the transom (back of the boat) above the waterline. It is also recorded on the title. Confirm the HIN on the transom matches your bill of sale and title before the buyer pulls away on the trailer.
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Source: Kentucky DMV ↗ · Last verified 2026-05-07