Governor Andy Beshear announced the commonwealth’s real property tax rate has dropped for the fourth consecutive year, decreasing to 10.9 cents per $100 of assessed value in 2024.
Kentucky law requires the Kentucky Department of Revenue to set the real property rate no later than July 1 of each year.
The state property tax rate is based on the revenue generated from the increase in taxable real property assessments from 2023 to 2024. If the increase in revenue is more than four percent after the exclusion of both new properties added to the tax roll during 2023, and the property subject to Tax Increment Financing, then the prior year’s rate must be reduced.
The 2023 State Real Property Tax Rate was 11.4 cents per $100 of assessed value. Because the assessment increase for 2024 is estimated at 7.66 percent, the state real property tax rate must be reduced to 10.9 cents per $100 of assessed value to keep state revenues from real property tax to no more than a four percent increase over the 2024 receipts.
The rate was 12.2 cents per $100 of assessed value in 2020. It decreased to 11.9 cents in 2021; 11.5 cents in 2022; 11.4 cents in 2023; and decreased for the fourth year in a row to 10.9 cents in 2024.
Revenue generated from the state property tax rate is deposited into the state’s General Fund.
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