Kentucky Homestead Exemption: How to Qualify and Apply

The Kentucky Homestead Exemption provides a property tax reduction for homeowners who meet specific criteria. This state constitutional benefit is designed to ease the financial burden on seniors and individuals with total disabilities. The exemption works by reducing the assessed value of a home for tax purposes, which lowers the owner’s annual property tax liability. It is not a direct rebate or credit but rather a deduction from the value upon which taxes are calculated.

Eligibility Requirements and Exemption Amount

For the 2025 and 2026 tax periods, the Kentucky homestead exemption is set at $49,100. This figure is subtracted from the property’s assessed value before the tax rate is applied. For instance, if a qualifying home is assessed at $200,000, the property taxes will be calculated on a value of $150,900. This amount is recalculated every two years to adjust for inflation, per Kentucky Revised Statute 132.810.

To qualify, a property owner must be at least 65 years old during the tax period. Alternatively, an individual of any age can qualify if they are classified as totally and permanently disabled by a public or private retirement system. This classification must be in effect for the entire year for which the exemption is sought.

Beyond age or disability, two other conditions are necessary. The applicant must own the property for which the exemption is being claimed. The property must also be the owner’s primary, permanent residence as of the January 1st assessment date. Only one exemption is permitted per household.

Information and Documents Needed to Apply

The official application is the “Application for Exemption Under the Homestead/Disability Act,” Form 62A350. This form can be obtained from the local county Property Valuation Administrator’s (PVA) office or downloaded from its website. The form requires basic personal data, including the applicant’s full name, date of birth, Social Security number, and details identifying the property.

Applicants qualifying by age will need to provide proof, such as a copy of their driver’s license, birth certificate, or Medicare card. Those applying based on disability must submit official documentation that verifies their status. This can include a notice of award letter from the Social Security Administration, a TPQY form, or similar verification from another authorized retirement system that confirms total and permanent disability.

This includes the property’s address and any identifying numbers found on a tax bill or deed. Having these documents organized beforehand helps prevent delays in the review and approval by the PVA office.

The Application Submission Process

The completed application and documentation must be submitted to the local county Property Valuation Administrator’s (PVA) office. Applicants can submit the form in person, by mail, or electronically via email. The deadline for filing the application is December 31st of the tax year for which the exemption is sought.

If the application is approved, the exemption is applied to the property’s assessed value for the corresponding tax year. The homeowner does not need to reapply for the age-based homestead exemption in subsequent years, as it renews automatically as long as the original applicant continues to own and live on the property.

If the homeowner moves to a new residence, they must notify the PVA office. The exemption can be transferred to a new primary residence. For individuals qualifying based on disability, reapplication requirements depend on their status. Those who have been determined to be totally and permanently disabled by an authorized agency, such as the Social Security Administration or Kentucky Retirement Systems, do not need to reapply annually. However, homeowners whose disability has not been classified as permanent must reapply each year to confirm their continued eligibility.