Kentucky housing costs at a glance
| Kentucky | |
|---|---|
| Median home value (Zillow) | $235,000 |
| Average effective property tax | 0.72% |
| Typical rate for a new buyer (calculator default) | 0.85% |
| Average homeowners insurance ($300k dwelling) | $3,252 a year |
| 2026 conforming loan limit (one unit) | $832,750 |
Example: median-priced home
Kentucky home for $235,000, 20% down, 6.5% 30-year fixed: principal and interest $1,188 + property tax $166 + insurance $271 = about $1,626 a month. Enter your own rate quote and the actual tax rate of the property for a precise figure.
Kentucky property tax
Kentucky taxes homes on their full market value at a combined state and local rate; the average effective rate is about 0.72%. Rates are higher in Louisville and Lexington, where city, county and school taxes add up. Owners aged 65 and over and people with disabilities get a homestead exemption on part of the assessed value.
Other Kentucky costs
- Transfer tax: $0.50 per $500 of the price (0.1%), usually paid by the seller.
- Insurance: about $3,250 a year on average because of storms and tornadoes.
- Most cities also charge an occupational tax on wages; see the Kentucky paycheck calculator.
Other states
See also the Kentucky paycheck calculator and mortgage costs in other states.
Frequently asked questions
What is the property tax rate in Kentucky?
About 0.72% of home value on average, higher in Louisville and Lexington.
What is the monthly payment on a median-priced Kentucky home?
On a $235,000 home with 20% down at 6.5%, principal and interest are about $1,188; with property tax at 0.85% and average insurance the total is about $1,626 a month.
How much is the transfer tax in Kentucky?
$0.50 per $500 of the price (0.1%), usually paid by the seller.
Is there a homestead exemption in Kentucky?
Yes, for owners aged 65 and over and for people who are totally disabled.
For information only; not a loan offer. Property tax, insurance and closing costs depend on the specific property and lender.
Sources
- Kentucky Department of Revenue – property tax
- FHFA – 2026 conforming loan limits
- U.S. Census Bureau ACS 2024 – real estate taxes (via NAHB / Construction Coverage)
- Zillow Home Value Index
- Insurify – home insurance by state
Rules checked: October 2026