Kentucky Property Tax

Effective Property Tax Rate

76.55%

Median Annual Tax

$1,472

Median Home Value

$192,300

Kentucky Property Tax Overview

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Effective Property Tax Rate

Average effective property tax rate: 0.77 %

According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023), the effective property tax rate in Kentucky is 0.77 %. This figure represents the average amount of property tax paid relative to the market value of residential property.

Median Home Value

Median home value (2026): $192,300

Based on the most recent ACS estimates, the median market value of owner‑occupied housing units in Kentucky is $192,300.

Example Property‑Tax Bills

Home value	Approx. annual property tax*
$250,000	$1,914
$500,000	$3,827

*Calculated using the average effective Kentucky property tax rate of 0.77 % (0.0077 × home value).

Variation by County

Kentucky property tax rates are set at the county level, with each of the state’s 120 counties determining its own levy rates and assessment practices. Consequently, the actual tax bill for a given property can differ from the state‑wide average depending on the county in which the property is located.

Comparison to the National Average

National average effective property tax rate (2026): 0.97 %
Kentucky’s rate relative to the nation: 0.77 % is 20.9 % lower than the national average.
Ranking: Kentucky ranks 24th out of 52 states and territories in terms of effective property tax rate (lower rates receive a higher rank).

Implications for Retirees and Landlords

Consideration	Facts (no opinion)
Retirees	The lower effective tax rate and median home values mean that the annual property‑tax burden for a typical Kentucky residence is below the national average. Property‑tax assessments are based on market value, which can be lower in many rural counties.
Landlords	Property‑tax obligations are calculated on the assessed value of the rental property. Because Kentucky’s average effective rate is below the national figure, the tax component of operating costs for rental units may be lower than in many other states. However, exact costs vary by county and by the assessed value of each specific property.

Both groups should verify county‑specific rates and any applicable exemptions (e.g., homestead or senior citizen exemptions) that may further affect their tax liability.

Frequently Asked Questions

1. How is the Kentucky property tax rate determined?
The rate is set by each county’s fiscal authority. Counties adopt a millage rate (dollars per $1,000 of assessed value) and apply it to the assessed value of each property, which is generally a percentage of the market value.

2. Are there exemptions that can reduce property tax for homeowners?
Yes. Kentucky offers several exemptions, such as the Homestead Exemption, senior citizen exemption, and veteran exemption. Eligibility and the amount of exemption vary by county and are administered at the local level.

3. Does the effective tax rate include other local taxes (e.g., school or city taxes)?
The effective property tax rate reported by the ACS reflects the total property tax paid to all local jurisdictions (county, city, school district, and special districts) as a percentage of home value. It does not include state income or sales taxes.

All figures are drawn from the U.S. Census Bureau’s American Community Survey (ACS) 5‑year estimates for 2023.

Neighboring States