State real property tax rate drops for 6th consecutive year

FRANKFORT, Ky. (WBKO) – Today, Gov. Andy Beshear announced that Kentucky’s real property tax rate has dropped for the sixth consecutive year.

It decreased to 10.3 cents per $100 of assessed value in 2026. According to Kentucky law, the Kentucky Department of Revenue is required to set the real property rate no later than July 1 of each year.

“Prices are too high right now, and every dollar counts. I’m focused on helping our families save,” Gov. Beshear said, in a release. “We’ve lowered income taxes and the property tax rate, temporarily lowered gas and diesel prices and provided tax relief through the homestead exemption. Folks shouldn’t be struggling to get by — they should be able to get ahead and live out the American Dream.”

The state property tax rate is based on the revenue generated from the increase in taxable real property assessments from 2025 to 2026.

If the increase in revenue is more than four percent after the exclusion of both new properties added to the tax roll during 2025, and the property subject to Tax Increment Financing, then the prior year’s rate must be reduced.

The 2025 State Real Property Tax Rate was 10.6 cents per $100 of assessed value.

Due to the assessment increase for 2026 is estimated at 6.48 percent, the state real property tax rate must be reduced to 10.3 cents per $100 of assessed value to keep state revenues from real property tax to no more than a four percent increase over the 2025 receipts.

Revenue generated from the state property tax rate is deposited into the state’s General Fund.