Lexington, Kentucky Property Taxes
The median property tax rate in Lexington, KY is 0.78%, which is notably lower than both the national median of 0.99% and the Kentucky state median of 1.02%. With a median home value of $245,500 in Lexington, the typical annual property tax bill amounts to $1,544, falling below the national median of $2,690. Property taxes in Lexington are calculated based on the tax assessed value, which often is less than the market value due to various exemptions, such as 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
0.78%
Estimate Property Tax Bill
$1,915
Ownwell’s Lexington Property Tax Bill Calculator empowers homeowners, real estate investors, and potential buyers to 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 provide an estimate of your property tax bill. This valuable tool helps you understand potential tax liabilities. For those interested in neighborhood-level trends, more localized information is available below. Your property’s assessed value is determined by the county for property tax calculations, taking into account 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 0.78%, which is lower 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 counties in Kentucky and the national median. For comparison, the 40516 zip code has the highest median property tax rate of 0.88%, while the 40511 zip code has the lowest median tax rate of 0.67%. Understanding how these cities compare with Lexington provides valuable insights into the varying tax landscape across Bourbon County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Lexington Tax Rate
0.78%
Average Bourbon County Tax Rate
0.57%
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 | 0.39% | 0.48% | 0.67% | 0.78% | 0.87% |
| 40516 | 0.44% | 0.61% | 0.88% | 0.88% | 0.88% |
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 Bourbon 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. For instance, the highest median tax bill in Lexington is $3,319 in the 40511 zip code, while the lowest is $175 in the 40516 zip code. This wide range highlights the importance of understanding your specific property valuation to manage your tax obligations effectively.
Average Lexington Assessed Value
$245,500
Average Bourbon County Assessed Value
$151,200
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 | $214,750 | $261,675 | $508,600 | $922,618 | $1,826,750 |
| 40516 | $4,000 | $7,900 | $13,000 | $429,900 | $670,620 |
Source: Ownwell
Property Tax Bills Across Lexington, Kentucky
In Lexington, property tax bills are calculated based on the assessed value of a home, which is determined by the local tax assessor. This assessed value, often a percentage of the market value, serves as the basis for the tax calculation. Various factors, such as the property's location, size, and condition, influence this assessed value. Homeowners in Lexington can expect their tax bills to vary significantly. For instance, the 25th percentile tax bill is around $87, while the 75th percentile tax bill reaches up to $3,423. At the higher end, the 90th percentile tax bill can be as much as $5,999. Comparatively, the median property tax rate in Lexington is notably lower than the national median of 0.99%. The highest median tax bill in Lexington is found in the 40511 zip code, amounting to $3,319, whereas the lowest median tax bill is in the 40516 zip code, at $175. These variations can significantly impact homeowners, influencing their annual financial planning and overall cost of homeownership.
Average Lexington Tax Bill
$1,544
Average Bourbon County Tax Bill
$936
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 | $1,292 | $1,726 | $3,319 | $5,952 | $9,080 |
| 40516 | $36 | $69 | $175 | $2,626 | $4,504 |
Source: Ownwell