Kentucky’s real property tax rates drops for third year in a row

Kentucky’s real property tax rates drops for third year in a row

Jun 29, 2023

LOUISVILLE, Ky. (WDRB) — For the third year in a row, Kentucky’s real property tax rate has dropped.
On July 1, the real property tax rate will drop to 11.4 cents per $100 of assessed value in 2023, a decrease of
0.01 cents from last year.

“This is great news for many Kentuckians as they’ll see property taxes drop for the third year in a row,” Gov.
Beshear said in a news release Thursday. “Every dollar our families can save helps them build toward their
future and the amazing opportunities we have coming our way, as Kentucky’s economy booms. I’m proud to
be the Governor who has now had an opportunity to lower both income and property taxes for our families.
This is a special time with a booming economy and the ability to ultimately be able to lower these rates.”

Kentucky law states that the commonwealth’s Department of Revenue must set the property tax rate by July 1.
The tax rate is determined by the revenue generated by increased property assessments from the previous
year, 2022-23.

An assessment increase of 4.27% allowed Kentucky’s Department of Revenue to reduce the tax rate from 11.5
to 11.4 cents per $100 assessed value. The revenue from Kentucky’s property tax is placed into a General Fund.