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2025 State Real Property Tax Rate Drops to 10.6 cents
Rate decreases for the fifth consecutive year.
FRANKFORT, Ky. (July 14, 2025)—The Kentucky Department of Revenue (DOR) has set the 2025 State Real Property Tax Rate at 10.6 cents per $100 of assessed value. Kentucky Revised Statute 132.020 requires DOR 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 2024 to 2025. If the increase in revenue is more than 4 percent after the exclusion of both new properties added to the tax roll during 2024, and the property subject to Tax Increment Financing, then the prior year’s rate must be reduced.
The 2024 State Real Property Tax Rate was 10.9 cents per $100 of assessed value. Because the assessment increase for 2025 is estimated at 7.54 percent, the state real property tax rate must be reduced to 10.6 cents per $100 of assessed value to keep state revenues from real property tax to no more than a 4 percent increase over the 2024 receipts.
Revenue generated from the state property tax rate is deposited into the state’s General Fund.
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