Kentucky diesel tax rate is 26.0¢ per gallon for 2026. Calculate your quarterly IFTA fuel tax liability for Kentucky routes and compare to neighboring states.
Kentucky's 26.0¢/gal diesel rate (variable, indexed to wholesale fuel price) is consistently among the lower rates in the eastern US. Louisville is one of the top 10 US freight markets, anchored by UPS Worldport — the largest automated package handling facility in the world — and a dense cluster of automotive plants (Ford, Toyota, GM suppliers). Kentucky's central location gives it same-day reach to 60% of the US population.
I-75 (Lexington–Cincinnati–Tennessee), I-64 (Louisville–Lexington–Charleston WV), I-65 (Louisville–Bowling Green–Nashville), I-24 (Nashville–Hopkinsville–Illinois), I-71 (Louisville–Cincinnati)
Lexington is the horse capital of the world but also a significant distribution center on I-75/I-64. The Toyota plant in Georgetown and Ford's Louisville Assembly plants generate consistent parts and finished-vehicle freight. Neighboring Tennessee (27.4¢) and Indiana (53.0¢) create an interesting dynamic — Tennessee is slightly higher than Kentucky, while Indiana is dramatically more expensive, making Kentucky the preferred fueling state for I-65 north-south runs near the Indiana border.