Lexington, Kentucky Property Taxes
The median property tax rate in Lexington, KY is 1.12%, which is higher than both the national median of 0.99% and Kentucky's state median of 1.02%. With a median home value of $189,750 in Lexington, the typical annual property tax bill amounts to $1,742, which is below the national median of $2,690. Property taxes in Lexington are calculated based on the assessed value, often less than the market value due to exemptions like the primary residence and agricultural exemptions. Understanding Lexington's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you're in the heart of Lexington or another part of the city, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Lexington, Kentucky Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.12%
Estimate Property Tax Bill
$2,125
Ownwell’s Lexington Property Tax Bill Calculator assists homeowners, real estate investors, and potential buyers in estimating their annual property taxes in Lexington using just two key data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Lexington to provide an estimate of your property tax bill. This valuable tool aids in understanding potential tax liabilities. For those interested in neighborhood-level trends, additional localized information is available below. Your property’s assessed value is the figure assigned by the county for tax purposes, accounting for any applicable exemptions.
Property Tax Rates Across Lexington, Kentucky
Property taxes in Lexington, Kentucky, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Lexington is 1.12%, higher than both the Kentucky state median and the U.S. national median of 0.99%. Local government entities within Lexington set these rates annually, and they can vary significantly across different neighborhoods. Each year, Lexington estimates its required budget to maintain services for the upcoming fiscal year, then divides this budget by the total value of all taxable property within the jurisdiction to calculate the property tax rate. While tax rates and budgets are influenced by laws and voter input, this calculation forms the basis of setting property tax rates. The data below compares Lexington's effective property tax rate to other areas in Kentucky and the national median. For comparison, the 40514 zip code has the highest median property tax rate of 1.16%, while the 40513 zip code has the lowest median tax rate of 1.07%. Understanding how these areas compare with Lexington provides valuable insights into the varying tax landscape across Jessamine County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Lexington Tax Rate
1.12%
Average Jessamine County Tax Rate
1.06%
Average Kentucky Tax Rate
1.02%
Average United States Tax Rate
0.99%
Property Tax Rates Across Lexington, Kentucky
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 40513 | 0.55% | 0.92% | 1.07% | 1.16% | 1.16% |
| 40514 | 1.02% | 1.03% | 1.16% | 1.16% | 1.16% |
| 40515 | 0.33% | 0.72% | 1.12% | 1.12% | 1.12% |
Source: Ownwell
Property Tax Assessment Values Across Lexington, Kentucky
In Lexington, Kentucky, understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes. The market value is the price a willing buyer would pay a willing seller in an open and competitive market, influenced by factors like location, property condition, and economic trends. This value is estimated by the Jessamine County Appraisal District for tax purposes. In contrast, the assessed value is the market value minus any applicable exemptions or limits based on local laws and available programs. The assessed value is then used to calculate your property taxes by multiplying it by the combined tax rates of all relevant taxing entities. In Lexington, assessment notices are typically mailed out in the spring, usually by mid-April. These notices provide homeowners with both the market and assessed values, along with an estimate of the annual property tax bill. By understanding the distinction between these valuation concepts, property owners can better navigate their tax responsibilities and comprehend how their property taxes are determined. Being aware of these valuation processes in Lexington helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. Notably, the highest median tax bill is found in zip code 40514 at $5,788, while the lowest is in zip code 40515 at $1,473.
Average Lexington Assessed Value
$189,750
Average Jessamine County Assessed Value
$189,900
Average Kentucky Assessed Value
$110,000
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Lexington, Kentucky
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 40513 | $446,000 | $500,000 | $625,000 | $1,057,500 | $1,404,000 |
| 40514 | $390,000 | $417,500 | $499,000 | $607,500 | $688,817 |
| 40515 | $2,569 | $40,264 | $178,562 | $445,555 | $660,843 |
Source: Ownwell
Property Tax Bills Across Lexington, Kentucky
In Lexington, property tax bills are calculated based on the assessed value of a home, which differs from its market value. The assessed value is determined by the local tax assessor and is used to calculate the property tax owed. Several factors influence this assessment, including the property's location, size, and condition. Homeowners in Lexington can expect a range of tax bills, with the 25th percentile paying around $483 and the 75th percentile paying up to $4,785. The highest median tax bill in the area reaches $5,788, specifically in the 40514 zip code, while the lowest median tax bill is $1,473 in the 40515 zip code. These property tax rates impact homeowners by influencing their overall housing costs, making it crucial for them to understand their specific tax obligations. With the national median property tax rate at 0.99%, Lexington homeowners may find their rates vary significantly based on their property's assessed value and location within the city.
Average Lexington Tax Bill
$1,742
Average Jessamine County Tax Bill
$1,839
Average Kentucky Tax Bill
$1,031
Average United States Tax Bill
$2,690
Property Tax Bills Across Lexington, Kentucky
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 40513 | $3,658 | $5,133 | $5,726 | $10,074 | $13,629 |
| 40514 | $3,986 | $4,305 | $5,788 | $7,047 | $7,990 |
| 40515 | $67 | $447 | $1,473 | $4,266 | $6,801 |
Source: Ownwell