Property owners pay Lexington, KY property tax at a combined rate that runs roughly $1.09 to $1.26 per $100 of assessed value, depending on which of Fayette County’s nine tax districts the parcel sits in. The Fayette County Sheriff’s Office mails bills in late October or early November, gives a 2% discount for paying by December 1, and adds penalties starting January 1. Missing the April 15 cutoff hands the bill to the County Clerk and can eventually put a third-party lien on your home.
How Your Property’s Value Is Set
The Fayette County Property Valuation Administrator (PVA) determines the taxable value of every parcel. Under KRS 132.220, all property is listed, assessed, and valued as of January 1 each year.1Kentucky Department of Revenue. Business Personal Property Whoever owns the property on January 1 gets the bill for that entire year, even if the property sells in March.
Section 172 of the Kentucky Constitution requires assessments at “fair cash value” — the price the property would bring in a voluntary sale between a willing buyer and a willing seller.2Kentucky Legislative Research Commission. Kentucky Constitution Section 172 – Property to Be Assessed at Fair Cash Value The PVA arrives at that number using recent comparable sales, physical inspections, and location-specific market trends.
Tax Rates by District
Your total rate depends on your tax district. Most homes inside Lexington’s city limits fall in Districts 1 through 7, where the combined 2025 rate ranged from about $1.09 to $1.26 per $100 of assessed value.3Fayette County PVA. Tax Districts Calculator The Fayette County Public Schools levy of $0.798 per $100 is by far the largest slice, accounting for more than 60% of a typical bill.
The other components:
- State tax: $0.106 per $100
- Urban County general services: $0.075 per $100
- Lextran (public transit): $0.06 per $100
- Health department: $0.0243 per $100
- Parks fund: $0.0225 per $100
- District-specific services (refuse, street lights, street cleaning): from $0.036 to $0.173 per $100
A home assessed at $250,000 in District 1, the most common full-service district, produces an annual bill of roughly $3,160 before any exemptions. Properties in the Downtown Lexington Management District pay an extra $0.10 per $100, and properties certified as abandoned and blighted face a surcharge of $1 per $100.3Fayette County PVA. Tax Districts Calculator
When to Pay and What It Costs
Kentucky’s collection calendar (KRS 134.015) builds a strong incentive to pay early:
- November 1 through December 1: 2% discount off the face amount
- December 2 through December 31: full face amount, no discount, no penalty
- January 1 through January 31: 5% penalty added
- February 1 through April 15: 10% penalty plus a 10% add-on fee
On a $3,000 bill, paying in November saves $60. Waiting until February costs an extra $600. That is a real reason to mark the calendar.
How to Pay
You’ll need your bill number or parcel identification number, both printed on the annual notice. Lost the notice? Look up your property by address on the Sheriff’s tax portal at fayette.softwaresystems.com.4Fayette County Sheriff’s Tax Office. Fayette County Sheriff’s Tax Office
Three options are available during the Sheriff’s collection period (November through mid-April):
- Online through the Sheriff’s tax portal. Credit card payments typically carry a processing fee.
- By mail with a check to the Fayette County Sheriff’s Office at the address on the bill.
- In person at the Government Center in downtown Lexington.
Save your receipt. Mortgage servicers often request proof of payment, and you’ll need the record if you itemize on your federal return.
If your lender collects property tax through escrow, the servicer pays the bill directly. Review your annual escrow analysis to confirm the servicer paid on time and captured the November discount where possible. Federal rules under RESPA limit how much the servicer can hold as a cushion.5Consumer Financial Protection Bureau. Escrow Accounts
Homestead and Disability Exemptions
Kentucky’s homestead exemption reduces the assessed value of a qualifying property by $49,100 for the 2025–2026 assessment period.6Kentucky Department of Revenue. Homestead Exemption For a typical Lexington bill, that is roughly $500 to $620 in annual savings, depending on your district rate. The exemption amount adjusts every two years for cost of living.7Kentucky Legislative Research Commission. Kentucky Code 132.810 – Homestead Exemption
You qualify if you are at least 65 during the year you apply and the property is your primary residence as of January 1. A separate but identical exemption applies if a federal or state agency has classified you as totally disabled, regardless of age. Only one exemption (homestead or disability) is allowed per household.7Kentucky Legislative Research Commission. Kentucky Code 132.810 – Homestead Exemption
The one-page application is available from the Fayette County PVA. Submit it with proof of eligibility: a driver’s license, birth certificate, or passport for the age-based exemption, or a disability declaration letter from your retirement system for the disability exemption. Applications can be faxed, emailed, or mailed to the Fayette County PVA Office at 101 E. Vine Street, Suite 600, Lexington, KY 40507.8Fayette County PVA. Homestead Exemption Disability exemption recipients must verify eligibility annually before December 31.
Kentucky does not currently offer a standalone property tax exemption for disabled veterans. A veteran classified as totally disabled through the VA qualifies for the same $49,100 reduction as any other disabled homeowner. House Bill 639, introduced during the 2025 legislative session, proposed a separate veterans’ homestead exemption but had not been enacted as of early 2026.
What Happens If You Don’t Pay
On April 15, any bill still unpaid at the Sheriff’s Office transfers to the Fayette County Clerk and becomes a certificate of delinquency, which is a formal lien on your property. Interest then accrues at 1% per month, and two more charges are added: a 10% county clerk fee and a 20% county attorney fee.9Kentucky Department of Revenue. Delinquent Property Tax
The county attorney sends a notice by May 15 and, if necessary, a second by June 15. Starting in mid-July, the county clerk offers the certificates for sale to third-party purchasers, with most sales occurring between mid-July and the end of August and the process running through late October. Delinquent properties are advertised in the local newspaper and on the county clerk’s website at least 30 days before the sale.9Kentucky Department of Revenue. Delinquent Property Tax
Once a third party buys your certificate, you deal with that purchaser, not the county, and substantial additional fees are added. A bill that started as a manageable January penalty can double or triple by summer.
Appealing Your Assessment
If you think the PVA overvalued your property, you have a narrow window each May to challenge it during the Open Inspection Period. For 2026, all conferences with the PVA must be completed by May 18.10Fayette County PVA. Assessments and Appeals This meeting is mandatory. You cannot skip it and go straight to a formal appeal.
Bring evidence. The strongest support includes recent comparable sales in your neighborhood, a private appraisal from a licensed appraiser, photographs of structural damage or deferred maintenance, and documentation of defects not visible from a standard inspection.11Kentucky Department of Revenue. The Property Tax Calendar “My taxes are too high” without data goes nowhere.
If the conference doesn’t resolve the dispute, file an appeal with the Local Board of Tax Appeals through the Fayette County Clerk’s Office. For 2026, that filing deadline is May 20.10Fayette County PVA. Assessments and Appeals The PVA will give you a document confirming your conference, which must be attached to the appeal form. A panel of local property owners hears the case and typically rules within 25 to 35 days after the inspection period ends.11Kentucky Department of Revenue. The Property Tax Calendar
If you disagree with the local board’s decision, the appeal moves to the Kentucky Department of Revenue, with a final appeal available to the Kentucky Board of Tax Appeals.10Fayette County PVA. Assessments and Appeals Most residential disputes end at the PVA conference or local board.
A Note for Businesses
Property tax in Fayette County isn’t limited to real estate. Businesses that own tangible personal property — equipment, computers, furniture, inventory, machinery, aircraft, or watercraft — must file Form 62A500 with the PVA between January 1 and May 15 each year.1Kentucky Department of Revenue. Business Personal Property Filing is waived if the total fair cash value of taxable personal property at a single location is $1,000 or less, though records should still be kept. Business personal property is assessed on January 1 and taxed at the same district rates as real property.