Property Tax Records in Kentucky

Buying a home means paying property taxes every year. In Kentucky, the average property tax rate is just 0.80%, which is below the national average of 1.11%. When you pay taxes on the property you own, this money will be used by your county to pay for public schools and a wide range of other local services.

Each county in Kentucky has a different tax rate. Depending on where you live, your property tax rate can be anywhere from less than 0.50% to more than 1%. The size and value of your property will determine how much you pay in taxes every year. Tax rates change annually. Once every taxing district in your county adopts a new rate, tax bills are printed and sent to the sheriff's office to be mailed to homeowners.

You should receive your property tax bill at some point in October or November. You'll have until the end of the year to pay your taxes. After this date, a penalty is assessed. Keep in mind that you'll likely receive a notice of your home's assessed value in March or April, which gives you time to appeal it before you get your tax bill.

A property tax has been in place throughout Kentucky since the beginning of June 1792, when the state was formed. However, it wasn't until 1936 that the Department of Revenue was created to administer taxes. In the 1980s, the Department of Revenue was renamed the Revenue Cabinet, after which the Department of Property Taxation was formed. Since 1990, all property has been assessed at 100% of the fair market value.

The property taxes you pay every year depend on your home's assessed value. Properties in Kentucky are assessed at 100% of their market value, which can lead to high property taxes. Let's say that an appraiser looks at your home and decides that it can be sold for $250,000 on the market. This means that the market value of your home is $250,000. Since the assessed value is designed to match the market one, you'll be taxed on the full $250,000 value.

Even though your property taxes are based on a high assessment percentage, tax rates are low in most counties. Once you identify your home's assessed value, you can calculate your property taxes. The assessed value for homes in Kentucky can change every two years or so. Real estate is assessed via a mass appraisal, which means that the appraiser uses sales data for an entire area to calculate values.

Tax rates can change slightly every year, so it's important to stay informed about the latest rates and deadlines. If you pay your tax bill by November 30, you can benefit from a 2% discount on the amount you owe, which can be a nice incentive to pay early. However, if you miss this deadline and pay after December, you'll face a 5% penalty on the outstanding balance. Additionally, an extra 15% fee will be applied if payment is delayed until February, making it crucial to avoid late payments to minimize the total amount owed. Late fees can accumulate quickly, so planning and adhering to deadlines can save you significant amounts over time. Always review your tax statements carefully and consider setting reminders to ensure timely payments.

As mentioned previously, the average tax rate in Kentucky is around 0.80%. If your home has an assessed value of $150,000 after any exemptions or deductions, your annual tax bill will amount to $1,200 based on the state average. If you're able to pay before November 30, your tax bill will be reduced by $24. The property tax rates in five of the top counties in Kentucky are:

Kentucky property tax rates are nominal and can vary greatly between counties. Kenton County property taxes, for example, are much higher than those of Warren County.

When you pay property taxes every year, your money goes toward the various taxing districts in your county, which can include everything from the fire department and library to the school district. Each county determines what these funds will be used for based on the annual budget.

If you'd like to learn more about the taxes that are paid for a specific property, you can look up tax records through your county's online database. The information that's present on these records can vary based on the county. However, you should be able to view detailed info about a property's assessed value and market value. Most tax records will also come with photos that show you what the property looks like. The information you can access with Kentucky Property tax records includes:

Kentucky provides homeowners with a couple of tax exemptions and deductions that are designed to reduce property taxes. These exemptions can effectively lower a property's assessed value. However, only a small percentage of homeowners qualify. No matter which county you live in, you'll have access to the following exemptions.

Homestead Exemption for Elderly Individuals: If you're at least 65 years old and own a home, you likely qualify for the Homestead Exemption. Keep in mind that only one exemption is allowed per residence. When filing your application, you must submit documents that confirm your age, which can include the following:

Once you qualify for this exemption, you don't need to reapply every year. For the 2023-2024 assessment years, the Homestead exemption is valued at $46,350. The amount changes every two years to account for inflation.

Exemption for Totally Disabled Individuals: If you have a disability that's rated as 100%, you qualify for an exemption on property taxes. You need to own and live in the property to qualify. Make sure you provide your county with documents that confirm your total disability classification. The documents you provide must be affixed with the current date. Kentucky accepts the following documents as proof of 100% disability:

• Benefits letter from Social Security webpage
• Benefits letter from another authorized program
• TPQY from your local Social Security office

This exemption also amounts to $46,350. If your property's assessed value is $150,000 and you qualify for this exemption, your taxes will be based on a value of $103,650.

Whether you live in Fayette County or Jefferson County, you'll have easy access to property tax records for any home you want to buy or invest in. There are two methods you can use to get these records, which include the county's search tool and a third-party solution. While there are plenty of third-party options to choose from, PropertyChecker is among the best Kentucky property tax records search providers out there.

If you want to use your county's Property Valuation Administration website to look up tax records, start by entering "property tax records in (your county)" into Google or another search engine. Once you reach this website, you should be able to search for a specific property based on different criteria.

For example, the Jefferson County database allows you to search by address, parcel ID, owner name, legal info, and sales. Once you input the right info, you should receive comprehensive tax records for a specific property.

PropertyChecker is a highly efficient solution that allows you to search by address or parcel ID. If you know the owner's name, phone number, or email address, you can also search with these parameters. This tool can give you access to a homeowners name and an ample amount of other property data, which extends to:

In Kentucky, homeowners receive property assessment notices months before tax bills are sent out. You can use your notice to estimate the amount of property taxes you'll need to pay for the year.

If you read the notice and discover that your property's assessment value has risen considerably since last year, the county appraiser might have made a mistake. If this year's assessment has increased by a higher percentage than usual, you could choose to appeal the value. Luckily, it’s not hard to appeal your Kentucky Property tax assessment.

Step 1: Regardless of where you live, your assessment notice should be mailed to you by the end of April, which gives you more than enough time to review the document and consider appealing.

Step 2: If you want to appeal your assessment, you must first do so with the Property Valuation Administrator (PVA). This is an informal review held at the beginning of May for around two weeks. Keep in mind that informal reviews can be held in person or over the phone.

During the hearing, you'll get an explanation for why your property's assessment value has increased. You can also present your documentation to show why your home should have a lower value.

Step 3: The PVA can decide to approve or deny your appeal during or after the informal review. If you don't agree with this decision, you can appeal directly to your county's Board of Assessment Appeals. After they hear your evidence, they can choose to reduce your property's assessment value. Appeal forms must be submitted to the Board of Assessment Appeals within one business day after the hearing period has concluded. This period usually ends around May 15.

Step 4: You'll receive a notification from the Board of Assessment Appeals that tells you the date and time of your hearing. They'll review the evidence that you've already submitted.

Step 5: If you disagree with the decision that the Board of Assessment Appeals makes, you can file another one with the Kentucky Board of Tax Appeals. This board is comprised of three members who will review your case. They'll notify you well in advance of your hearing date.

Property taxes play a critical role in most real estate transactions. Sellers must consider how buyers will react to the property tax rate in their county. If a seller lives in a county with a high tax rate, it may be more difficult for them to receive offers.

Buyers must deal with elevated property values and interest rates, which might make them wary of providing an offer in a place with high tax rates. Sellers can, however, make their properties more appealing by offering to cover closing costs or complete some of the outstanding repairs that the home needs.

If you're buying a home in Kentucky, you can use the county's property tax rate to determine what your monthly mortgage payment will be. Once you know the home's assessed value, all you need to do is multiply it by the tax rate. Your annual property taxes will be divided into 12 equal payments that are added to your mortgage payments.

If you're investing in real estate, the property taxes you need to pay every year can reduce your net operating income. Before you invest in a rental, estimate your annual property taxes. It's also a good idea to find out if there are any liens on the title. A lien is a type of legal claim that can use a property as collateral to pay for a debt.

Keep in mind that unpaid property taxes can also be turned into liens, which investors can purchase. In Kentucky, each county holds an annual property tax sale that allows investors to bid for liens. If you make a winning bid, you'll need to pay all the outstanding taxes, after which you'll be able to hold the lien and collect interest payments from the homeowner. If the homeowner continues to avoid repayment, it's possible to start the foreclosure process.