What is the property tax rate in Fayette County?

The combined effective property tax rate in Fayette County, Kentucky is approximately 0.95%.

Fayette County Property Tax Calculator (2026) — Kentucky Property Tax Almanac

Property Tax in Fayette County, 2026

A calculator and field guide for Lexington-area homeowners — and for anyone considering a move to Fayette County — including Kentucky's 100% fair cash value assessment (KY Const. §172), the $49,100 Homestead Exemption for 65+ or totally disabled (indexed every 2 years), HB 639 (2025) creating a NEW dedicated disabled-veteran exemption ($240,000 AV exemption for 100% P&T in 2026, rising to $400,000 by 2030 — effectively full exemption for most KY homes), and HB 44's 4% revenue cap (limits district revenue growth, not bills).

Fayette County, home to Lexington and 325k Kentuckians, operates under Kentucky\'s straightforward 100% fair cash value property tax system. Real estate is assessed at 100% of fair cash value (KY Constitution §172) — no assessment ratio reduction. Tax = AV × rate / $100. Combined rates include state property tax (~$0.115/$100 of AV), county, city, school district, and special district levies. HB 44 (1979) caps district revenue growth at 4% — when total AV in a taxing district rises, rates must roll back so the district collects no more than 4% additional revenue from existing property (excluding new construction). Cap can be exceeded by public hearing + possible recall vote.

How the bill is built

Kentucky property tax follows a 3-step calculation. Step 1: Fair Cash Value. The Fayette County Kentucky Property Valuation Administrator (Kentucky uses elected Property Valuation Administrators, NOT assessors) determines fair cash value annually using sales comparables. Step 2: Apply exemptions. The Homestead Exemption ($49,100 AV reduction for 2025-2026, indexed every 2 years) applies to owner-occupants 65+ or totally disabled. The HB 639 (2025) Disabled Veteran Exemption ($240,000 AV cap for 100% P&T in 2026, rising to $400K by 2030) replaces the Homestead when a vet qualifies — they don\'t stack. Step 3: Apply tax rate. Tax = (AV − exemptions) × rate / $100. Fayette County\'s combined rate is ~$0.95/$100 of AV (= $0.95% effective rate against full FMV, since AR is 100%).

Kentucky\'s 100% AR distinguishes it from most Southeastern states. Most Southern states use sub-100% assessment ratios — Alabama uses 10% for Class III residential, Mississippi uses 10%, South Carolina uses 4% for Legal Residence. Kentucky uses 100%, which means the rate visible on the tax bill IS the effective rate against full FMV. This produces clearer comparisons against Northern/Midwestern states (which also typically use 100% AR or rates expressed against full value). Kentucky\'s ~0.83% statewide median effective rate is below the US median of ~1.10% but well above Alabama\'s ~0.40%.

HB 639 (2025) was a major expansion of disabled-veteran property tax benefits in Kentucky. Before HB 639, disabled veterans only received the regular $49,100 Homestead Exemption — meaningful but limited. HB 639 created a NEW dedicated, tiered exemption: 100% P&T disabled vets receive a $240,000 AV exemption in 2026, rising to $260K (2027), $300K (2028), $340K (2029), and $400K by 2030. Partial disability ratings receive prorated amounts (10% rating = $5,000 minimum). Surviving spouse retains if continued residency. For Kentucky\'s many military communities (Fort Knox / Hardin, Fort Campbell / Christian), the new exemption produces effectively full property tax exemption for most homes.

HB 44 (1979) caps district revenue growth at 4%. When total assessed values in a taxing district rise, tax rates must roll back so that the district collects no more than 4% additional revenue from existing property (excluding new construction). Districts can exceed the 4% limit only by holding a public hearing — and if a sufficient number of taxpayers file a petition, the rate increase goes to a public vote. This mechanism doesn\'t cap individual tax bills directly, but limits how much total revenue a district can collect — providing structural stability against tax-bill spikes during rapid value appreciation.

2026 Fayette County rate breakdown ($ per $100 of AV (100% fair cash value, no AR reduction), Lexington district)

Taxing entity	Rate
Combined consolidated rate (Lexington-Fayette Urban County Government, ~$0.95 / $100 of AV)	0.9500
Combined total	0.9500

As of April 26, 2026 · From Fayette County Kentucky Property Valuation Administrator.

Note: Fayette County is **fully consolidated with the City of Lexington** under the Lexington-Fayette Urban County Government (LFUCG, since 1974 — Kentucky's first consolidated city-county). Lexington is **the second-largest city in Kentucky** (~325K — though the metro is smaller than Louisville's) and **the global capital of thoroughbred horse breeding**. The county is home to the University of Kentucky (UK, ~32,000 students — flagship of the state university system), the Kentucky Wildcats athletics program (SEC Conference, 8 NCAA basketball championships — among the most in NCAA history), and the celebrated Bluegrass region of central Kentucky.

Note: Fayette County effective property tax rates run approximately **0.95% — moderate by Kentucky standards**. Combined consolidated rate is ~$0.95/$100 of AV (Kentucky uses 100% AR). Median home values around $310K combined with the moderate rate produce median annual bills around $2,945.

Note: For relocation buyers: Fayette County offers **the premier Bluegrass-region Kentucky** option — substantial UK-anchored commercial sector (healthcare, equine industry, distilling), the celebrated downtown Lexington and historic horse farm landscape (including world-famous farms like Calumet, Three Chimneys, and Claiborne), and exceptional Bluegrass scenery. The trade-off: aggressive housing price appreciation since 2020, limited high-tech employment beyond UK research clusters.

Deductions and exemptions for 2026

Kentucky homeowner property tax relief is concentrated in three mechanisms: (1) the $49,100 Homestead Exemption (KRS 132.810, indexed every 2 years) for owner-occupants 65+ OR totally disabled, (2) the HB 639 Disabled Veteran Exemption ($240,000 AV cap for 100% P&T in 2026, rising to $400K by 2030), and (3) the HB 44 4% revenue cap for taxing districts. Kentucky uses 100% AR — no assessment ratio reduction.

$49,100 Homestead Exemption (65+ OR Totally Disabled)

Kentucky\'s Homestead Exemption (KRS 132.810) is $49,100 AV reduction for the 2025-2026 biennium. The amount is indexed every 2 years for inflation (was $46,350 in 2023-2024). Available to homeowners 65+ OR classified as totally disabled under any government-administered retirement system program (Social Security, VA, etc.). At Kentucky\'s typical 0.95% effective rate, saves roughly $470/year. One-time application for seniors (carries forward automatically); annual recertification for disability-based qualification. File Form 62A350 with the County PVA.

HB 639 Disabled Veteran Exemption (NEW 2025)

HB 639 (passed 2025) created a NEW dedicated disabled-veteran property tax exemption with tiered benefits by VA disability rating. 100% P&T disabled vets receive a $240,000 AV exemption in 2026, rising annually to $260K (2027), $300K (2028), $340K (2029), and $400K by 2030. Partial disability ratings receive prorated exemptions ($5,000 minimum at 10%). Surviving spouse retains if continued residency. The Vet Exemption and Homestead don\'t stack — the Vet Exemption replaces the Homestead when both would qualify. For Kentucky\'s many military communities (Fort Knox / Hardin, Fort Campbell / Christian), the Vet Exemption produces effectively full property tax exemption for most homes (median KY home values are well below the $240K cap).

HB 44 4% Revenue Cap (1979)

HB 44 (1979) caps district revenue growth at 4% — when total assessed values in a taxing district rise, tax rates must roll back so that the district collects no more than 4% additional revenue from existing property (excluding new construction). Districts can exceed the 4% limit by holding a public hearing — and if a sufficient number of taxpayers file a petition, the rate increase goes to a public vote. This mechanism doesn\'t cap individual tax bills directly, but provides structural stability against tax-bill spikes during rapid value appreciation.

Appealing your assessment

Kentucky property tax appeals follow a 3-tier process. Level 1: PVA Conference. Schedule a conference with the County Property Valuation Administrator (PVA) by May 1 or the deadline shown on your assessment notice. The PVA reviews and may adjust. Level 2: Local Board of Assessment Appeals. If unresolved, appeal to the Local Board within 30 days of the PVA conference. Level 3: Kentucky Board of Tax Appeals. Local Board decisions can be appealed to the Kentucky Board of Tax Appeals within 30 days. From there to Circuit Court. Most Kentucky appeals are resolved at the PVA conference or Local Board level.

Cities and towns in Fayette County

Fayette County contains 1 incorporated municipality, ranging from Lexington to the smallest village. Search volume for property tax is often city-specific, so here is the complete list — with population from the 2020 US Census, rounded to the nearest 100.

Data: US Census Bureau, 2020 Decennial Census. Populations rounded. Cities marked as "split" straddle a county border — the portion inside Fayette County is subject to Fayette County's tax rolls, while the portion outside is subject to the adjacent county's.

City or town	Type	Population (2020)
Lexington County seat	consolidated_city_county	325,000

About city-level property tax rates: The rate breakdown and calculator on this page reflect the Lexington tax district. Other cities in Fayette County may pay into different school districts, city rates, and special districts — so their combined rates can differ, sometimes substantially. Always verify the specific rates for your address with the Fayette County Kentucky Property Valuation Administrator before relying on any estimate.

Frequently asked questions

When are Kentucky property taxes due?

Kentucky property taxes are typically due by December 31. Tax bills are usually mailed in October. Late payments after January 31 of the following year accrue penalty (typically 5% if paid within 30 days, plus interest). Most counties offer a 2% discount for early payment (typically by November 1 or November 30, varying by county). Most Kentucky homeowners pay through escrow via mortgage servicer.

How does the Kentucky $49,100 Homestead Exemption work?

Kentucky\'s Homestead Exemption (KRS 132.810) reduces the assessed value of your primary residence by $49,100 for the 2025-2026 biennium. Available to homeowners 65+ OR classified as totally disabled (Social Security or any government-administered retirement system program). The amount is indexed every 2 years for inflation (was $46,350 in 2023-2024). At Kentucky\'s typical 0.95% effective rate, saves roughly $470/year. One-time application for seniors (carries forward automatically); annual recertification for disability-based qualification. File Form 62A350 with the County PVA.

What is the HB 639 disabled veteran exemption?

HB 639 (passed 2025) created a NEW dedicated disabled-veteran property tax exemption with tiered benefits by VA disability rating. 100% P&T disabled vets receive a $240,000 AV exemption in 2026, rising annually to $260K (2027), $300K (2028), $340K (2029), and $400K by 2030. Partial disability ratings receive prorated exemptions ($5,000 minimum at 10% rating). Surviving spouse retains if continued residency. The Vet Exemption and the regular Homestead Exemption don\'t stack — the Vet replaces the Homestead when both qualify. For Kentucky\'s many military communities (Fort Knox, Fort Campbell), the new exemption produces effectively full property tax exemption for most homes (median KY home values are well below the $240K cap).

What is HB 44 and how does the 4% cap work?

HB 44 (1979) caps district revenue growth at 4% — when total assessed values in a Kentucky taxing district rise, tax rates must roll back so that the district collects no more than 4% additional revenue from existing property (excluding new construction). Districts can exceed the 4% limit by holding a public hearing — and if a sufficient number of taxpayers file a petition, the rate increase goes to a public vote. This mechanism doesn\'t cap individual tax bills directly, but provides structural stability. HB 44 has been a defining feature of Kentucky property tax stability for over 40 years.

How do I appeal my Kentucky assessment?

Kentucky property tax appeals follow a 3-tier process. Level 1: PVA Conference. Schedule a conference with the County Property Valuation Administrator (PVA) by May 1 or the deadline shown on your assessment notice. Level 2: Local Board of Assessment Appeals. Within 30 days of PVA conference. Level 3: Kentucky Board of Tax Appeals. Within 30 days of Local Board. From there to Circuit Court. Most appeals are resolved at the PVA conference or Local Board level.

About Fayette County

Beyond the property tax — a few things you might not know about the place.

Weird fact

Fayette County contains **approximately half of all the thoroughbred horse breeding operations in the United States** — the rolling Bluegrass region around Lexington has been the global capital of thoroughbred breeding since the early 19th century, due to the unique combination of limestone-rich soil (which produces calcium-rich grass that develops strong horse bones) and the temperate climate. Major Lexington-area horse farms include Calumet Farm (which has produced 8 Kentucky Derby winners — more than any other farm), Three Chimneys, Claiborne Farm, Spendthrift Farm, and Coolmore Stud. The Keeneland Race Course (in Fayette County) hosts the famous Keeneland September Yearling Sale (the largest thoroughbred yearling auction in the world, ~$400+ million in annual sales) and the Spring/Fall race meets.

Hometown hero

George Clooney

The American actor and filmmaker (born 1961 in Lexington, Fayette County — though raised partly in Mason County, KY and Augusta, KY) — winner of two Academy Awards (Best Supporting Actor for Syriana 2005, Best Picture as producer for Argo 2012), the Cecil B. DeMille Award (2015), and 8 Golden Globe Awards — was born in Lexington while his father Nick Clooney (a TV anchor) worked at Lexington station WLEX-TV. The Clooney family has deep Kentucky roots — Nick's sister Rosemary Clooney (1928-2002) was the iconic American singer ("Come On-a My House" 1951, the holiday classic White Christmas 1954). Other notable Lexington figures include UK basketball coach legend Adolph Rupp (1901-1977 — "Baron of the Bluegrass"), Ashley Judd (actress, born 1968 in Granada Hills, CA but raised partly in Lexington), and country music star Wynonna Judd.

Biggest annual event

Keeneland race meets + UK basketball

Keeneland Race Course hosts spring (April) and fall (October) thoroughbred race meets — drawing 35,000-45,000 attendees per major race day with the Blue Grass Stakes (a Kentucky Derby prep race). Keeneland's September Yearling Sale is the world's largest thoroughbred auction. UK Wildcats men's basketball home games at Rupp Arena (capacity 20,500, in downtown Lexington) draw 20,000+ attendees per game — making UK basketball the cultural touchstone of central Kentucky. UK has won 8 NCAA championships (1948, 1949, 1951, 1958, 1978, 1996, 1998, 2012) — second only to UCLA in major college basketball history.

Property Tax in Fayette County, 2026