STATE TAX RATE DROPS FOR 2021
Rate decreases for the first time since 2008
FRANKFORT, Ky. (July 6, 2021)—The Kentucky Department of Revenue (DOR) has set the 2021 State Real Property Tax Rate at 11.9 cents per $100 of assessed value. Kentucky Revised Statute 132.020 requires DOR to set the real property rate no later than July 1 of each year.
The state property tax rate is based on the revenue generated from the increase in taxable real property assessments from 2020 to 2021. If the increase in revenue is more than 4 percent after the exclusion of both new properties added to the tax roll during 2020, and the property subject to Tax Increment Financing, then the prior year’s rate must be reduced.
The 2020 State Real Property Tax Rate was 12.2 cents per $100 of assessed value. Because the assessment increase for 2021 is estimated at 6.54 percent, the state real property tax rate must be reduced to 11.9 cents per $100 of assessed value to keep state revenues from real property tax to no more than a 4 percent increase over the 2020 receipts.
Revenue generated from the state property tax rate is deposited into the state’s General Fund.