Trucking Costs in Kentucky

Kentucky's state diesel tax is 24.6 cents per gallon (variable component, subject to quarterly adjustments), plus the 24.4-cent federal tax for a total of approximately 49.0 cents per gallon. Diesel prices in Kentucky average $3.55-$3.85 per gallon, generally below the national average. However, the KYU weight-distance tax adds $0.0285/mile for trucks over 59,999 lbs — effectively adding $0.0285 to per-mile costs. A truck running 10,000 miles monthly faces fuel costs of $5,500-$5,900 plus $285 in KYU tax. IFTA filing is required quarterly, and the KYU is reported separately. Major fuel stops along I-65, I-64, I-71, and I-75 offer competitive pricing. The I-65 corridor through Bowling Green and Elizabethtown has abundant fueling options.

Annual insurance for a Kentucky owner-operator typically totals $10,000-$17,000. Commercial vehicle registration ranges from $250-$500 based on gross weight. The HVUT adds $550 annually. Kentucky's state income tax uses a flat rate of 4.0% (simplified from the previous graduated system in 2022). The state also charges a 6% sales tax on equipment purchases. The KYU weight-distance tax uniquely adds $2,850 per 100,000 miles to Kentucky operating costs. UCR is $69-$73. When comparing Kentucky to neighboring states, the KYU effectively offsets some of the state's otherwise moderate cost structure. Carriers should factor KYU into rate calculations for Kentucky lanes.

Kentucky maintenance costs are moderate. Shop labor averages $80-$115 per hour. Budget $0.13-$0.18 per mile for maintenance. Eastern Kentucky mountain routes increase brake and drivetrain wear. The state's moderate climate has four distinct seasons — winter operations require cold-weather preparation but are milder than northern states. Tire costs run $3,000-$5,000 annually. Kentucky's road quality varies significantly — interstates are well-maintained but secondary roads in eastern Kentucky coal country can be rough. Deer collisions are common October-December. Louisville and Lexington have excellent truck service infrastructure. Eastern Kentucky has limited repair facilities, requiring self-sufficiency on mountain routes.

A Kentucky-based owner-operator with a paid-off truck can expect costs of $1.45-$1.82 per mile (including KYU). With truck payments, costs increase to $1.70-$2.12 per mile. Breakdown: fuel $0.55-$0.60/mi, KYU $0.028/mi, insurance $0.08-$0.12/mi, maintenance $0.13-$0.18/mi, tires $0.03-$0.05/mi, truck payment $0.15-$0.25/mi, permits $0.02-$0.03/mi, overhead $0.05-$0.08/mi. Kentucky dry van rates average $2.25/mi and flatbed $2.75/mi. The Louisville UPS Worldport and Toyota Georgetown plant generate massive freight volumes. Bourbon transport from the Bardstown/Louisville area provides premium specialized loads. Owner-operators grossing $180,000-$225,000 can net $50,000-$75,000.