Rate decreases to 10.3 cents per $100 of assessed value
FRANKFORT, Ky. (July 16, 2026) — Today, Gov. Andy Beshear announced the commonwealth’s real property tax rate has dropped for the sixth consecutive year, decreasing to 10.3 cents per $100 of assessed value in 2026.
Kentucky law requires the Kentucky Department of Revenue to set the real property rate no later than July 1 of each year.
“Prices are too high right now, and every dollar counts. I’m focused on helping our families save,” Gov. Beshear said. “We’ve lowered income taxes and the property tax rate, temporarily lowered gas and diesel prices and provided tax relief through the homestead exemption. Folks shouldn’t be struggling to get by — they should be able to get ahead and live out the American Dream.”
This joins other steps that Gov. Beshear has taken to help Kentuckians save, including:
- Signing legislation in 2023 and 2025 to lower income taxes.
- Following a spike in gas prices due to the conflict in Iran, signing an executive order in May reducing Kentucky's gas tax by 10 cents per-gallon, saving Kentuckians an estimated $26.8 million combined over a one-month period. The Governor extended the order an extra month in 33 communities where local officials requested an extension and also activated the state’s price-gouging statute at the time to ensure the relief went directly to Kentucky families.
- Amid soaring gas prices earlier this year, signing an emergency regulation to freeze the gas tax at 26.4 cents per-gallon ahead of an expected increase to 27 cents per gallon on July 1, saving Kentuckians about $1.7 million combined each month.
- Announcing the expanded homestead tax exemption to provide tax relief and help seniors and other vulnerable Kentuckians stay in their homes.
- Signing an executive order to freeze the 2026 motor vehicle assessment rate ahead of an expected increase on Jan. 1, 2027.
The state property tax rate is based on the revenue generated from the increase in taxable real property assessments from 2025 to 2026. If the increase in revenue is more than four percent after the exclusion of both new properties added to the tax roll during 2025, and the property subject to Tax Increment Financing, then the prior year’s rate must be reduced.
The 2025 State Real Property Tax Rate was 10.6 cents per $100 of assessed value. Because the assessment increase for 2026 is estimated at 6.48 percent, the state real property tax rate must be reduced to 10.3 cents per $100 of assessed value to keep state revenues from real property tax to no more than a four percent increase over the 2025 receipts.
Revenue generated from the state property tax rate is deposited into the state’s General Fund.
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