Lexington, Kentucky Property Taxes
The median property tax rate in Lexington, KY is 1.24%, 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 $206,100 in Lexington, the typical annual property tax bill amounts to $2,392, just below the national median of $2,690. Property taxes in Lexington are calculated based on the assessed value, which is often lower than the market value due to various exemptions, such as those for primary residences and agricultural properties. 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 Fayette County, 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
1.24%
Estimate Property Tax Bill
$2,556
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 1.24%, 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 counties in Kentucky and the national median. For comparison, the 40507 zip code has the highest median property tax rate of 1.24%, while the 40510 zip code has the lowest median tax rate of 1.07%. Understanding how these cities compare with Lexington provides valuable insights into the varying tax landscape across Fayette County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Lexington Tax Rate
1.24%
Average Fayette County Tax Rate
1.24%
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 |
|---|---|---|---|---|---|
| 40502 | 1.01% | 1.09% | 1.24% | 1.24% | 1.24% |
| 40503 | 0.89% | 0.99% | 1.10% | 1.23% | 1.24% |
| 40504 | 0.88% | 1.06% | 1.23% | 1.24% | 1.24% |
| 40505 | 0.85% | 1.04% | 1.24% | 1.24% | 1.24% |
| 40507 | 1.08% | 1.24% | 1.24% | 1.24% | 1.24% |
| 40508 | 1.07% | 1.24% | 1.24% | 1.24% | 1.24% |
| 40509 | 1.05% | 1.21% | 1.24% | 1.24% | 1.24% |
| 40510 | 0.94% | 0.96% | 1.07% | 1.07% | 1.07% |
| 40511 | 0.97% | 1.23% | 1.24% | 1.24% | 1.24% |
| 40513 | 0.93% | 1.07% | 1.10% | 1.24% | 1.24% |
| 40514 | 0.93% | 1.09% | 1.21% | 1.24% | 1.24% |
| 40515 | 0.96% | 1.09% | 1.24% | 1.24% | 1.24% |
| 40516 | 0.91% | 1.07% | 1.24% | 1.24% | 1.24% |
| 40517 | 0.89% | 1.21% | 1.24% | 1.24% | 1.24% |
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 Fayette County PVA 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. The zip code with the highest median tax bill is 40510 at $4,622, while the lowest is 40508 at $1,261. 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
$206,100
Average Fayette County Assessed Value
$206,100
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 |
|---|---|---|---|---|---|
| 40502 | $152,210 | $226,350 | $340,550 | $511,250 | $735,000 |
| 40503 | $144,000 | $172,500 | $210,600 | $277,500 | $365,000 |
| 40504 | $99,100 | $130,000 | $170,500 | $210,100 | $275,930 |
| 40505 | $72,000 | $118,200 | $147,500 | $181,400 | $228,000 |
| 40507 | $170,880 | $225,000 | $290,100 | $374,750 | $544,000 |
| 40508 | $40,700 | $63,100 | $105,650 | $192,150 | $320,000 |
| 40509 | $133,000 | $188,600 | $298,900 | $388,900 | $495,000 |
| 40510 | $242,170 | $394,400 | $457,500 | $545,100 | $699,730 |
| 40511 | $72,920 | $139,500 | $202,000 | $246,400 | $300,000 |
| 40513 | $215,820 | $291,400 | $378,000 | $479,700 | $609,940 |
| 40514 | $164,500 | $195,000 | $237,200 | $294,100 | $371,000 |
| 40515 | $125,700 | $153,000 | $222,100 | $301,700 | $417,840 |
| 40516 | $115,400 | $159,575 | $200,650 | $276,475 | $514,450 |
| 40517 | $108,500 | $130,600 | $159,900 | $196,200 | $238,500 |
Source: Ownwell
Property Tax Bills Across Lexington, Kentucky
In Lexington, Fayette County, KY, property tax bills are calculated based on the assessed value of the property. This assessed value is determined by the Fayette County Property Valuation Administrator and reflects the market value of the property. The local tax rate, which varies by jurisdiction, is then applied to this assessed value to calculate the tax bill. Several factors influence the assessed value, including the property's location, size, condition, and recent sales of similar properties in the area. For instance, the median home price in Lexington is $206,100. Property tax bills in the city can vary significantly, with the 25th percentile at $1,690 and the 75th percentile at $3,522. The highest median tax bill in Fayette County is $4,622 in the 40510 zip code, while the lowest is $1,261 in the 40508 zip code. Homeowners in Lexington may find that their property tax bill impacts their overall housing costs, making it crucial to understand how these taxes are calculated and what factors might influence any changes.
Average Lexington Tax Bill
$2,392
Average Fayette County Tax Bill
$2,391
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 |
|---|---|---|---|---|---|
| 40502 | $1,811 | $2,551 | $3,957 | $6,059 | $8,803 |
| 40503 | $1,478 | $1,881 | $2,372 | $3,100 | $4,001 |
| 40504 | $1,116 | $1,447 | $1,938 | $2,427 | $3,115 |
| 40505 | $798 | $1,239 | $1,694 | $2,124 | $2,675 |
| 40507 | $2,032 | $2,738 | $3,524 | $4,395 | $6,379 |
| 40508 | $433 | $711 | $1,261 | $2,379 | $3,917 |
| 40509 | $1,516 | $2,237 | $3,524 | $4,698 | $5,934 |
| 40510 | $2,821 | $3,959 | $4,622 | $5,628 | $7,340 |
| 40511 | $832 | $1,687 | $2,415 | $2,980 | $3,597 |
| 40513 | $2,241 | $3,094 | $4,171 | $5,630 | $7,303 |
| 40514 | $1,719 | $2,113 | $2,672 | $3,477 | $4,296 |
| 40515 | $1,441 | $1,745 | $2,544 | $3,586 | $4,946 |
| 40516 | $1,362 | $1,793 | $2,282 | $2,992 | $5,438 |
| 40517 | $1,168 | $1,484 | $1,855 | $2,314 | $2,826 |
Source: Ownwell