How Much Are Property Taxes in Kentucky?

Property taxes in Kentucky primarily fund local public services like public education, local law enforcement, fire protection, and infrastructure maintenance. While the state levies a property tax, most revenue is collected and utilized at the local level. Understanding how these taxes are determined and managed is important for property owners.

Understanding Property Valuation

Property taxation in Kentucky begins with determining a property’s assessed value, generally its fair cash value. This “fair cash value” is the price a property would likely sell for in a voluntary transaction. The local Property Valuation Administrator (PVA) in each county assesses most real property for tax purposes.

Kentucky law mandates annual revaluation of all real property, with a physical inspection by the PVA office at least once every four years. PVAs consider factors like location, size, age, and condition. They also analyze recent sales of comparable properties, replacement costs, and, for commercial properties, potential income generation. This assessed value, determined as of January 1 each year, forms the starting point for calculating a property owner’s tax liability.

Applying Property Tax Rates

Property tax rates in Kentucky are established by multiple independent taxing authorities. These include the state, county and city governments, local school districts, and various special taxing districts for services like libraries or fire protection. Each entity sets its own rate annually, reflecting its budgetary requirements. Rates are expressed as an amount per $100 of assessed value.

For example, the state real property tax rate was 10.9 cents per $100 of assessed value in 2024. This figure adjusts to prevent state revenues from increasing by more than four percent annually. Most local taxing districts are governed by House Bill 44, which limits how much property tax revenue can increase each year without a public hearing or a recall petition. If a taxing district seeks to increase revenue by more than four percent over the compensating rate, a public hearing is required, and the proposed increase may be subject to a voter recall.

Key Exemptions and Reductions

Certain programs can significantly reduce a property’s taxable assessed value, directly lowering the property tax bill. The Kentucky Homestead Exemption is available to homeowners who are at least 65 years old or have been classified as totally disabled. For the 2025-2026 assessment years, this exemption allows eligible homeowners to deduct $49,100 from their property’s assessed value.

To qualify for the Homestead Exemption, the property must be owned and occupied as the applicant’s primary residence as of January 1 of the application year. Homeowners applying based on age must provide proof, such as a birth certificate or driver’s license. Those applying due to total disability must be classified as such under a program authorized by a U.S. government agency or a retirement system. Applications for this exemption are filed with the county Property Valuation Administrator’s office.

Calculating Your Kentucky Property Tax

The basic calculation for your Kentucky property tax is: (Assessed Value – Applicable Exemptions) x Total Applicable Tax Rates = Property Tax Bill. For instance, if a home is assessed at $200,000 and qualifies for the $49,100 Homestead Exemption, the taxable value becomes $150,900.

To determine your tax bill, identify your property’s assessed value, which can be found on your county PVA’s website or by contacting their office. Next, locate the combined property tax rates for your specific location, available from the county clerk’s office, the PVA website, or local government websites. This total rate encompasses the state, county, school district, and any applicable special district rates.

Paying and Disputing Your Property Tax Bill

Property tax bills in Kentucky are mailed in the fall, often around October 1, by the county sheriff’s office. Many counties offer a discount for early payment, such as a 2% discount if paid by November 1 or November 30. The bill is due by December 31, after which penalties accrue. A 5% penalty may be added in January, increasing to 21% from February 1 onwards.

If a property owner believes their assessment is incorrect, they can dispute it through an appeals process. The first step involves an informal conference with the Property Valuation Administrator (PVA) during a designated inspection period, usually in May. If an agreement is not reached, the property owner can file a formal appeal with the local Board of Assessment Appeals. This appeal must be filed with the county clerk’s office by one workday following the close of the inspection period. Further appeals can be made to the Kentucky Board of Tax Appeals if dissatisfied with the local board’s decision.