Kentucky Homestead Exemption for Seniors and Disabled Homeowners

Quick Facts

• Benefit amount: For 2025, the Kentucky homestead exemption subtracts $48,960 from the assessed value of your principal residence. The amount adjusts every two years based on inflation and statewide property value trends.
• Who qualifies: Homeowners age 65 or older, as well as individuals classified as totally and permanently disabled by the Social Security Administration or another authorized agency. Surviving spouses may continue the exemption if they are at least 59 and the decedent previously qualified.
• How it works: The exemption is applied by the county Property Valuation Administrator (PVA) and lowers the taxable value for county, city, and school district property taxes. It remains in effect as long as you occupy the home and continue to qualify.
• Stackable relief: You can combine the homestead exemption with property tax assessment appeals, local hardship programs, and energy efficiency grants to stabilize overall housing costs.

Program Overview

Kentucky’s homestead exemption is one of the most straightforward property tax relief tools in the state. Authorized by Section 170 of the Kentucky Constitution, it removes a fixed dollar amount from the assessed value of a qualifying homeowner’s residence. The General Assembly recalculates the exempt amount every odd-numbered year, so staying updated on the latest figure is important. For many seniors living on fixed incomes, the exemption delivers hundreds of dollars in annual savings.

Unlike some programs that require yearly reapplication, Kentucky’s exemption typically remains in place permanently once approved, unless there is a change in ownership, occupancy, or eligibility. However, counties periodically conduct audits, so it is wise to keep supporting documentation accessible. Because property taxes fund local schools and services, the exemption targets the taxpayers most likely to be displaced by rising assessments—older adults and residents with disabilities.

Eligibility Requirements

To qualify you must:

1. Meet age or disability criteria: You must be 65 or older by December 31 preceding the assessment date, or be classified as totally and permanently disabled under Social Security standards or through a state retirement system. Disability must be expected to last at least 12 months and prevent substantial gainful employment.
2. Own and occupy the property: The home must be your primary residence. You may own it individually, jointly, as a tenant in common, or through certain trusts where you retain life estate or beneficial rights. Manufactured homes on owned land also qualify.
3. Apply with documentation: Submit a homestead exemption application to the county PVA with proof of age (driver’s license, birth certificate) or disability (SSA award letter). If you already receive Social Security disability benefits, include the Notice of Award with the onset date.
4. Maintain occupancy: Moving out, renting the property, or converting it to commercial use terminates the exemption. Inform the PVA within 30 days of such changes.

Application Process

1. Contact the PVA office. Each county PVA administers applications. Forms are available online or in person. Some PVAs accept email or fax submissions.
2. Gather proof. Provide a copy of a driver’s license, birth certificate, passport, or other government ID. For disability applicants, include the SSA-1099 or disability determination letter. If the applicant is a surviving spouse, provide the decedent’s death certificate and proof that the exemption was previously granted.
3. Complete the homestead application. Include property information, parcel number, and ownership details. Sign and date the form; some counties require notarization.
4. Submit before December 31. Filing by the end of the calendar year ensures the exemption applies to tax bills issued the following fall. Late applications may be processed, but relief only applies prospectively.
5. Retain confirmation. Request a receipt or follow up to ensure the exemption appears on the property tax assessment notice mailed each spring.

Documentation Checklist

• Completed homestead exemption application
• Government-issued ID showing date of birth
• Social Security disability award letter or medical certification (if applying under disability)
• Proof of property ownership (deed, title, or land contract)
• Death certificate and marriage certificate for surviving spouses continuing the exemption
• Utility bills or voter registration to confirm occupancy if requested

Understanding the Savings

Property taxes in Kentucky are calculated by multiplying the assessed value by the combined tax rates of the county, city, school district, and special districts. By removing $48,960 from the assessed value, the exemption reduces the taxable base. For example, if combined tax rates total $1.20 per $100 of assessed value (1.2%), the exemption saves approximately $587.52 annually ($48,960 ÷ 100 × 1.2). Savings vary by county; urban areas with higher rates like Jefferson or Fayette yield larger dollar savings than rural counties with lower rates.

Strategies to Maximize the Benefit

1. Appeal assessments before applying. If you believe your property is overassessed, file an appeal during the open inspection period in May. Lowering the assessed value first ensures the exemption removes the maximum proportion of taxes.
2. Coordinate with mortgage escrow. Notify your mortgage servicer once the exemption is approved so escrowed payments adjust downward. Provide a copy of the tax bill showing the exemption.
3. Plan for estate transitions. If you intend to transfer the home into a revocable trust, ensure the trust reserves a life estate so you maintain eligibility. Consult an attorney to avoid inadvertently terminating the exemption.
4. Combine with energy assistance. Use the savings to fund home weatherization or apply for programs like the Low-Income Home Energy Assistance Program (LIHEAP) to reduce winter heating costs.
5. Engage local agencies. Area Agencies on Aging, legal aid groups, and Cooperative Extension offices host clinics to help seniors understand tax bills. Attending provides opportunities to learn about other grants and services.

Example Scenarios

• Retiree in Lexington: Janet, age 70, owns a home assessed at $180,000. With the exemption, taxable value drops to $131,040. At Fayette County’s combined rate of roughly 1.28%, she saves about $627 annually, which she applies toward prescription costs.
• Disabled homeowner in Pike County: Robert receives Social Security Disability Insurance and qualifies under the disability provision. The exemption lowers his tax bill by $420, freeing funds to repair his roof through a USDA Rural Development grant.
• Surviving spouse in Bowling Green: After her husband’s death, Linda (age 60) continues the exemption because the home remains her primary residence and she was named on the deed. She provides the death certificate to the PVA and maintains savings of nearly $500 per year.

Maintaining Compliance

• Residency verification: PVAs may mail questionnaires to confirm you still occupy the property. Respond promptly to avoid removal.
• Report changes: Inform the PVA if you sell the home, move into assisted living, or rent the property. Failure to report can result in back taxes and penalties.
• Retain documentation: Keep copies of approval letters, tax bills, and supporting proof. Audits can occur especially when the property is transferred to family members.
• Monitor reassessment cycles: Kentucky reassesses property at least every four years. Review assessment notices and appeal if valuations jump significantly.

Complementary Programs and Tips

• Disability parking permit and accessibility grants: If you qualified via disability, explore state vehicle registration discounts and accessibility modification grants offered by Kentucky Housing Corporation.
• Utility relief: Senior residents may be eligible for utility discounts or budget billing programs offered by LG&E, KU, and rural electric cooperatives.
• Home repair assistance: Programs such as the Homeowner Rehab through local Community Development Block Grants can help with critical repairs, using the tax savings as matching funds.
• Financial counseling: Nonprofit credit counseling agencies can help seniors allocate the tax savings toward debt reduction or emergency funds.

Frequently Asked Questions

• Does the exemption apply to agricultural land? It covers up to one acre surrounding the residence. Additional acreage is taxed normally unless it qualifies for agricultural assessment.
• What happens if spouses divorce? The spouse who remains in the home and qualifies by age or disability can continue the exemption. Notify the PVA and provide updated ownership documents.
• Can I receive the exemption on multiple properties? No. It applies only to your principal residence where you claim the homestead. Vacation or rental homes are not eligible.
• Do I need to reapply annually? Generally no, but you must notify the PVA of changes. Some counties may request periodic verification.

Resources

• Kentucky Homestead Exemption Program
• County Property Valuation Administrator offices (contact info available on the Kentucky Department of Revenue site)
• Kentucky Legal Aid and AppalReD Legal Aid for low-income homeowner assistance
• Area Agencies on Aging for tax counseling and application help

Key Takeaways

The Kentucky homestead exemption offers a reliable, predictable reduction in property taxes for seniors and people with disabilities. By applying once, keeping documentation current, and coordinating with other financial supports, you can channel the savings into healthcare, home maintenance, or emergency reserves, strengthening your ability to age in place.