Beshear Administration Provides Additional Tax Relief Through 2025-2026 Homestead Exemption
FRANKFORT, Ky. (Dec. 5, 2024) – Today, Gov. Andy Beshear, who is committed to lowering costs for Kentuckians, announced that the state will provide additional tax relief for some individuals through the 2025-2026 Homestead Exemption. Eligible Kentuckians can claim $49,100 for the 2025 and 2026 tax periods.
“As Governor, I am laser-focused on helping bring down costs for Kentuckians. That’s why we’ve lowered income and property taxes, and now we’re able to provide additional tax relief through the homestead exemption to help folks save more money,” Gov. Beshear said. “This is one important way we can help seniors and other vulnerable Kentuckians stay in their homes.”
According to the Kentucky Department of Revenue (DOR), to qualify for the homestead exemption, a person must be at least 65 years old during the tax period or classified as totally disabled by any public or private retirement system. The assessed property must also be owned, occupied and maintained as the taxpayer’s personal residence on the Jan. 1 assessment date to be eligible for this exemption. This exemption is applied against the assessed value of the home and the property tax liability is computed on the assessment remaining after deducting the exemption amount.
During the 2023 tax year, the exemption provided state and local property tax savings of approximately $293 million for more than 474,000 elderly or disabled Kentuckians.
By statute, the homestead exemption amount is recalculated every two years to adjust for inflation. The 2025-2026 exemption reflects a $2,750 change from the 2023–2024 exemption of $46,350.
“Through the homestead exemption, eligible Kentucky homeowners can deduct a portion of their property’s assessed value,” said DOR Commissioner Thomas B. Miller. “As a result, property taxes are assessed upon the reduced amount, saving eligible Kentucky homeowners hundreds of dollars in property taxes.”
An application for the homestead exemption is available on DOR’s website. This application must be completed and submitted to the property owner’s local Property Valuation Administrator’s (PVA) office no later than Dec. 31 of the eligible tax year.
The completed application can be submitted online, by mail or in person. Eligible property owners should contact their PVA’s office to learn the best method to use for local application submission.
