LOUISVILLE, Ky. (WDRB) — For the sixth consecutive year, Kentucky lowered the state property tax rate.
Gov. Andy Beshear announced Thursday that the 2026 rate decreased to 10.3 cents per $100 of assessed value.
That's down from 10.6 cents last year. Beshear said it's the latest step to provide relief to Kentuckians at a time when "prices are too high" and "every dollar counts."
"We've lowered income taxes and the property tax rate, temporarily lowered gas and diesel prices and provided tax relief through the homestead exemption," Beshear said in a news release Thursday. "Folks shouldn't be struggling to get by — they should be able to get ahead and live out the American Dream."
The state property tax is set by July 1 each year and applies to all real property tax bills throughout Kentucky, as required by state law.
State property taxes are based on revenue generated from the increase in taxable real property tax assessments from last year to this year. Officials said if the increase in revenue is more than 4% "after the exclusion of both new properties added to the tax roll during 2025, and the property subject to Tax Increment Financing," then the previous year's rate has to be reduced.
Last year's real property tax rate was 10.6 cents per $100 of assessed value. Beshear's office said the assessment increase for this year is estimated at just over 6%, meaning the state's real property tax rate has to be reduced to 10.3 cents per $100 of assessed value "to keep state revenues from real property tax to no more than" a 4% increase over 2025.
Revenue collected from the state property tax rate is put into the state's General Fund, Beshear's office said.
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