7 Homestead Exemption Rules That Decide What Kentucky Homeowners 65 and Older Save
A big birthday can come with a property tax break in Kentucky.
How much it saves you depends on more than your birthday, though.
Here are the rules that decide what Kentuckians 65 and older save.
Note: This is general information, not legal or tax advice. Assessment rules and exemption amounts are subject to change, so confirm the current details with your county property valuation administrator.
1. Two-Year Reset
The homestead exemption amount is recalculated every two years, and the Department of Revenue announced the current figure on Nov. 14, 2024.
That $49,100 maximum is the most you can claim for the 2025 and 2026 tax periods, up $2,750 from the $46,350 that applied to 2023 and 2024.
Kentucky Revised Statutes 132.810 starts from $6,500 in 1972 dollars.
Every two years after that, the maximum adjusts only if the federal cost of living index has changed by at least 1%.
A higher maximum lets you subtract more from your home’s assessed value.
2. Age 65 Test
The homestead exemption starts at age 65, and the statute measures that age across the whole tax year.
The law says you must be 65 or older “during the year for which application is made.”
That year runs from January 1 through December 31.
So if your 65th birthday lands in December, you still qualify for that year’s exemption.
Sixty-four is too young.
3. January 1 Home Test
The homestead exemption turns on one day, the January 1 assessment date.
You have to own the home, occupy it and maintain it as your personal residence on that date.
By that rule, a house you buy in March misses the cutoff for that year.
Your first chance comes the following January.
4. One Exemption Per Home
The homestead exemption belongs to the home, not to each person living in it.
Kentucky Revised Statutes 132.810 allows “only one (1) exemption per residential unit,” no matter how many residents are 65 or older.
For couples, the home still gets a single exemption if you and your spouse both qualify by age.
A condominium counts as a home, and so does a manufactured house.
A mobile home qualifies when it’s classified as real estate.
If you hold the title jointly or in common, the exemption applies only to the value assessable to you.
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5. Dollar Savings on Your Bill
The homestead exemption subtracts from your home's assessed value, and your tax rate stays the same.
State law applies the reduction to state, county, city and special district taxes.
The state's real estate tax rate was 10.6 cents for every $100 of assessed value in 2025, so the full $49,100 saves you about $52 on the state's share.
County, city and special district rates add to that figure, so your full savings differ from one address to the next.
The reduction touches only your property tax bill, so your other everyday costs in Kentucky stay the same.
The Math on a $150,000 Home
The homestead exemption subtracts $49,100 from a home assessed at $150,000, which leaves $100,900 to tax.
At an example combined rate of $1.00 on every $100, the tax on $150,000 is $1,500.
The same rate on $100,900 comes to $1,009, so the exemption saves you $491.
Your rate will differ, so your savings will too.
6. December 31 Filing Deadline
You have to ask for the homestead exemption, and the Department of Revenue sets the cutoff at December 31 of the tax year.
Your application goes to your county's property valuation administrator (PVA), the office that handles property assessments.
You can submit it online, by mail or in person.
If you've already paid your bill, you can still apply before the cutoff, and the statute entitles you to a refund of the property tax tied to the exemption.
Apply before you pay, and your bill reflects the exemption instead.
7. One-Time Application at 65
The age-based homestead exemption takes one application, not one every year.
The Department of Revenue's manual says that once you're approved, you don't need another application form.
Jefferson County's PVA says the same, so you don't lose a year of savings by forgetting to renew.
If you move, you have to notify the PVA and reapply for the exemption on your new residence.
State law also requires the owner to report a title transfer to the PVA whenever an exempted property changes hands.
The disability-based exemption generally needs a new application every year, with exceptions for some veterans and for people classified as permanently and totally disabled.
Exemption Amounts Over the Years
The homestead exemption was $39,300 for 2019 and 2020.
It rose to $40,500 for 2021 and 2022, then to $46,350 for 2023 and 2024.
That jump added $5,850, more than twice the $2,750 added in the latest reset.
The current $49,100 sits $9,800 above the 2019-2020 figure, a gain of about 25%.
The next reset is due for 2027 and 2028, and the Department of Revenue lists each period's figure on its homestead exemption pages.
If you turn 65 in a later cycle, you'll claim whatever maximum that period sets.
Refunds for Missed Years
The Department of Revenue's manual says a missed application doesn't cancel an age-based homestead exemption.
If you turned 65 in an earlier year and never applied, a refund of the prior year's taxes paid can be made.
Refunds generally reach back only to taxes paid within two years of the date you apply, under Kentucky Revised Statutes 134.590.
Applying for the Kentucky Homestead Exemption in Jefferson County
Jefferson County's PVA takes homestead exemption applications online or by mail.
Mailed applications need a copy of a valid ID issued by the Jefferson County Circuit Clerk or the Kentucky Transportation Cabinet.
If you live outside Jefferson County, your county has a separate PVA office, and the Department of Revenue says to contact yours to learn the best way to submit.
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FAQ
Quick answers about the homestead exemption.
How much is the homestead exemption?
The current maximum is $49,100 off your home's assessed value, according to the Kentucky Department of Revenue.
That figure covers the 2025 and 2026 tax periods.
What age do you have to be for the homestead exemption?
You must be 65 or older during the tax year, which runs January 1 through December 31.
Kentucky law also covers you if you're classified as totally disabled.
Is there an income limit for the Kentucky homestead exemption?
Kentucky Revised Statutes 132.810 lists age or disability, ownership and residence as the tests.
Income isn't one of them.
Do you have to reapply for the homestead exemption every year?
Not for the age-based exemption once you're approved, according to the Department of Revenue's manual and Jefferson County's property valuation administrator.
If you move, you reapply for your new home.
Does applying for the Kentucky homestead exemption raise your assessment?
The statute says your assessed value can't go up because of the value you write on the application form.
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