Lexington, Kentucky Property Taxes
The median property tax rate in Lexington, KY is 0.49%, considerably lower than both the national median of 0.99% and the Kentucky state median of 1.02%. With the median home value in Lexington at $317,100, the typical annual property tax bill reaches $1,383, which is significantly below the national median of $2,690. Property taxes in Lexington are calculated based on the tax assessed value, which typically falls below the market value due to various 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
0.49%
Estimate Property Tax Bill
$1,554
Ownwell’s Lexington Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Lexington with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Lexington to estimate your property tax bill. This insightful tool helps you understand potential tax liabilities. If you’re interested in seeing trends on a neighborhood level, scroll down to find more localized information. Your property’s assessed value is the value assigned by the county for property tax calculations, accounting for any exemptions that may apply.
Property Tax Rates Across Lexington, Kentucky
Property taxes in Lexington, Kentucky, are vital in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Lexington is 0.49%, which is lower than 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 counties in Kentucky and the national median. For comparison, the 40511 zip code has the highest median property tax rate of 0.49%, while the 40511 zip code also has the lowest median tax rate of 0.49%. Understanding how these cities compare with Lexington provides valuable insights into the varying tax landscape across Scott County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Lexington Tax Rate
0.49%
Average Scott County Tax Rate
0.68%
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 |
|---|---|---|---|---|---|
| 40511 | 0.15% | 0.29% | 0.49% | 0.72% | 0.85% |
Source: Ownwell
Property Tax Assessment Values Across Lexington, Kentucky
Understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes in Lexington, KY. 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 local 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 zip code 40511 in Lexington has the highest median tax bill at $1,383, while the same zip code also holds the lowest median tax bill.
Average Lexington Assessed Value
$317,100
Average Scott County Assessed Value
$199,800
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 |
|---|---|---|---|---|---|
| 40511 | $59,440 | $129,500 | $317,100 | $760,300 | $1,289,834 |
Source: Ownwell
Property Tax Bills Across Lexington, Kentucky
In Lexington, KY, property tax bills are calculated based on the assessed value of a home, which is determined by local tax assessors. The assessed value is then multiplied by the local tax rate to determine the annual tax bill. For instance, the median home price in Lexington stands at $317,100, and depending on various factors such as location and property characteristics, tax bills can vary significantly. Homeowners in Lexington can expect tax bills to range widely. At the 25th percentile, tax bills are around $622, while at the 75th percentile, they can reach up to $3,240. For those in the 90th percentile, tax bills can be as high as $5,171. The highest and lowest median tax bill in Lexington is $1,383, found in the 40511 zip code. These variations underscore how property taxes can impact homeowners differently, depending on their property's assessed value and specific local tax rates. Understanding these factors can help residents better anticipate their annual property tax obligations.
Average Lexington Tax Bill
$1,383
Average Scott County Tax Bill
$1,297
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 |
|---|---|---|---|---|---|
| 40511 | $256 | $622 | $1,383 | $3,240 | $5,171 |
Source: Ownwell