Kentucky Property Tax Calculator
Calculate property taxes in Kentucky. KY effective property tax rate is 0.83% with a median home value of $195,000. Includes KY assessment ratios and exemptions.
Kentucky at a Glance
$195,000
Median Home Price
0.83%
Property Tax Rate
$1,800
Avg Home Insurance
$472,030
FHA Loan Limit
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Reviewed & Methodology
Every calculator is built using industry-standard formulas, validated against authoritative sources, and reviewed by a credentialed financial professional. State-specific data is sourced from official government publications.
Property Tax Calculator in Kentucky
The median home price in Kentucky is $195,000, which is 54% below the national average of $420,000. Kentucky's effective property tax rate of 0.83% is 0.27 percentage points lower than the national average of 1.1%.
| Metric | Kentucky (KY) | National Avg | vs National Average |
|---|---|---|---|
| Median Home Price | $195,000 | $420,000 | -54% |
| Property Tax Rate | 0.83% | 1.1% | -0.27% |
| Home Insurance (Annual) | $1,800 | $2,300 | -22% |
| State Sales Tax | 6% | 5% | +1.0% |
| FHA Loan Limit | $472,030 | $472,030 | Standard |
| Conforming Loan Limit | $766,550 | $766,550 | Standard |
Kentucky offers a homestead exemption of $46,350, which reduces the taxable value of your primary residence. The state uses an assessment ratio of 100% to determine the assessed value for property tax purposes.
Homeownership in Kentucky
Kentucky's median home price around $195,000 makes it one of the more affordable states in the country. The state assesses property at 100% of fair cash value, but effective rates are modest at 0.83%, and a meaningful Homestead Exemption of $46,350 is available to residents 65 and older. The Louisville and Lexington metros have seen more price appreciation than rural Kentucky, but even urban areas remain accessible compared to national benchmarks.
Tips for Kentucky Homebuyers and Homeowners
- Kentucky's Homestead Exemption of $46,350 applies automatically to qualifying homeowners 65 or older -- this reduces assessed value by $46,350 before the tax rate is applied.
- The state has a flat 5% income tax rate, but that rate is phasing down over time under legislation passed in 2022 -- this simplifies income tax planning.
- Kentucky exempts Social Security income from state taxation and provides a $41,110 exclusion on pension income for residents 65+ -- a significant retiree-friendly provision.
- Home insurance in Kentucky averages around $1,800 but varies widely -- eastern Kentucky and areas in tornado corridors in western Kentucky see higher rates due to severe weather exposure.
Kentucky Programs and Assistance
- Kentucky Housing Corporation (KHC) Regular Program -- offers 30-year fixed rate mortgages at below-market rates for first-time buyers, with income and purchase price limits.
- KHC Down Payment Assistance (DAP) -- provides $6,000 in a 0% interest, deferred-payment second mortgage for buyers using KHC financing.
- KHC Affordable DAP -- offers $10,000 in down payment assistance specifically for buyers with income at or below 80% of area median income.
Did you know? Kentucky is home to more than 95% of the world's bourbon supply -- the bourbon industry has sparked significant real estate investment in Louisville and the Bluegrass region, including hotel conversions and distillery campus development.