Lexington, Kentucky Property Taxes
The median property tax rate in Lexington, KY is 0.99%, aligning with the national median of 0.99% and slightly below the Kentucky state median of 1.02%. With the median home value in Lexington at $115,000, the typical annual property tax bill is $935, which is below the national median of $2,690. Property taxes in Lexington are calculated based on the tax assessed value, which often 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
0.99%
Estimate Property Tax Bill
$1,139
-$11,931
Ownwell’s Lexington Property Tax Bill Calculator assists homeowners, real estate investors, and potential buyers in estimating 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 crucial for funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Lexington is 0.99%, which aligns with 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 40504 zip code has the highest median property tax rate of 0.99%, while the 40391 zip code has the lowest median tax rate of 0.42%. Understanding how these cities compare with Lexington provides valuable insights into the varying tax landscape across Clark County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Lexington Tax Rate
0.99%
Average Clark County Tax Rate
0.99%
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 |
|---|---|---|---|---|---|
| 40391 | 0.18% | 0.28% | 0.42% | 0.98% | 0.98% |
| 40502 | 0.61% | 0.73% | 0.98% | 0.98% | 0.98% |
| 40503 | 0.79% | 0.98% | 0.98% | 0.98% | 0.99% |
| 40504 | 0.98% | 0.98% | 0.99% | 0.99% | 0.99% |
| 40505 | 0.11% | 0.15% | 0.22% | 0.60% | 0.83% |
| 40507 | 0.98% | 0.98% | 0.98% | 0.99% | 0.99% |
| 40508 | 0.98% | 0.98% | 0.98% | 0.98% | 0.99% |
| 40509 | 0.23% | 0.56% | 0.98% | 0.98% | 0.99% |
| 40510 | 0.24% | 0.30% | 0.40% | 0.49% | 0.55% |
| 40511 | 0.34% | 0.98% | 0.98% | 0.99% | 0.99% |
| 40514 | 0.98% | 0.98% | 0.98% | 0.98% | 0.98% |
| 40515 | 0.18% | 0.38% | 0.89% | 0.98% | 0.98% |
| 40516 | 0.98% | 0.98% | 0.98% | 0.98% | 0.98% |
| 40517 | 0.68% | 0.98% | 0.98% | 0.98% | 0.98% |
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 Clark 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. Assessment notices in Lexington 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. For instance, the highest median tax bill in Lexington can be found in zip code 40510 at $2,449, while the lowest median tax bill is in zip code 40516 at $246. 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.
Average Lexington Assessed Value
$115,000
Average Clark County Assessed Value
$130,000
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 |
|---|---|---|---|---|---|
| 40391 | $44,500 | $146,050 | $281,500 | $494,050 | $726,450 |
| 40502 | $54,800 | $67,450 | $91,900 | $112,450 | $135,300 |
| 40503 | $37,200 | $41,525 | $65,400 | $93,100 | $116,240 |
| 40504 | $66,350 | $72,175 | $120,150 | $183,275 | $194,850 |
| 40505 | $140,740 | $175,900 | $234,500 | $1,011,300 | $1,477,380 |
| 40507 | $48,630 | $78,375 | $97,550 | $101,400 | $103,560 |
| 40508 | $33,290 | $35,600 | $35,600 | $75,825 | $110,500 |
| 40509 | $50,000 | $78,400 | $156,000 | $384,000 | $583,300 |
| 40510 | $487,630 | $621,025 | $843,350 | $1,065,675 | $1,199,070 |
| 40511 | $38,430 | $50,250 | $63,550 | $219,525 | $434,310 |
| 40514 | $93,840 | $106,800 | $125,000 | $127,200 | $131,880 |
| 40515 | $30,400 | $75,000 | $223,100 | $512,000 | $835,420 |
| 40516 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 |
| 40517 | $60,000 | $60,000 | $65,000 | $75,000 | $211,260 |
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 local tax authorities. The assessed value is then multiplied by the local property tax rate to determine the annual tax bill. Factors such as the home's location, size, and condition play a crucial role in the assessment process. For instance, in the 40510 zip code, the median tax bill reaches $2,449, while in the 40516 zip code, it can be as low as $246. Homeowners in Lexington can expect their tax bills to vary significantly. The 25th percentile tax bill is around $394, while the 75th percentile tax bill can go up to $1,880, and the 90th percentile reaches $3,399. With the national median property tax rate at 0.99%, Lexington's property tax rates can substantially impact homeowners, particularly those in higher-value homes. Understanding these factors can help homeowners better anticipate their annual expenses and plan their finances accordingly.
Average Lexington Tax Bill
$935
Average Clark County Tax Bill
$1,117
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 |
|---|---|---|---|---|---|
| 40391 | $390 | $618 | $1,148 | $1,603 | $2,587 |
| 40502 | $524 | $582 | $680 | $816 | $1,175 |
| 40503 | $348 | $395 | $644 | $917 | $992 |
| 40504 | $654 | $711 | $1,183 | $1,805 | $1,919 |
| 40505 | $640 | $833 | $1,155 | $1,287 | $1,366 |
| 40507 | $479 | $772 | $961 | $999 | $1,020 |
| 40508 | $328 | $351 | $351 | $747 | $1,088 |
| 40509 | $337 | $691 | $1,231 | $2,502 | $3,713 |
| 40510 | $2,386 | $2,410 | $2,449 | $2,489 | $2,513 |
| 40511 | $379 | $495 | $626 | $1,071 | $2,387 |
| 40514 | $924 | $1,052 | $1,231 | $1,253 | $1,299 |
| 40515 | $227 | $586 | $1,133 | $2,544 | $3,838 |
| 40516 | $246 | $246 | $246 | $246 | $246 |
| 40517 | $591 | $591 | $640 | $739 | $1,160 |
Source: Ownwell