Forty-Nine Thousand One Hundred Dollars of Assessed Value, and Every Condition Attached to It
Program and regulatory figures verified October 10, 2026. Details change; confirm your scenario with us.
This is the money page, so everything on it is quoted from the constitution, the statute or the Department of Revenue, with nothing added.
The amount, and the Department's own example
The Kentucky Department of Revenue: "The value of the homestead exemption for the 2025-2026 assessment years is $49,100."
★ And its worked example, which we reproduce exactly because it is the Department's and not ours: a residence assessed at a fair cash value of $200,000 would have property taxes based on a taxable assessment of $150,900.
★★ Note what that is and is not. It takes $49,100 off the assessed value, not $49,100 off a tax bill. Your saving is that reduction multiplied by your local rate, and we publish no dollar saving, because local rates are local and we did not read them. Our sourcing rules.
★★ Who qualifies, in the constitution's own words
Ky. Const. § 170 reaches an owner of a permanent residence who is:
- sixty-five years of age or older; or
- ★★ classified as totally disabled "under a program authorized or administered by an agency of the United States government or by any retirement system either within or without the Commonwealth".
★★ That second limb is the veteran's route: a VA total-disability classification is a classification by an agency of the United States government. The three tests compared.
★ The constitution adds that the owner must have received disability payments pursuant to the classification and maintained it for the entirety of the taxation period: and KRS 132.810(2)(c) repeats both.
★★ Only one, even if you qualify twice
KRS 132.810(2)(e)1, verbatim: "Only one (1) exemption per residential unit shall be allowed even though the resident may be sixty-five (65) years of age and also totally disabled, and regardless of the number of residents sixty-five (65) years of age or older occupying the unit."
★★ So a 70-year-old veteran with a total rating gets one exemption, not two. And a household with two residents over 65 gets one, not two. It attaches to the residential unit.
★ Where $49,100 comes from, and the table the Department publishes
KRS 132.810(2)(e)2 and 3: the $6,500 in the constitution means $6,500 "in terms of the purchasing power of the dollar in 1972", and "every two (2) years thereafter, if the cost of living index of the United States Department of Labor has changed as much as one percent (1%), the maximum exemption shall be adjusted accordingly."
★ The Department keeps DOR's own 1972-to-present table. Here it is:
| Years | Amount | Years | Amount |
|---|---|---|---|
| ★ 2025-2026 | $49,100 | 1995-1996 | $23,100 |
| 2023-2024 | $46,350 | 1993-1994 | $21,800 |
| 2021-2022 | $40,500 | 1991-1992 | $20,300 |
| 2019-2020 | $39,300 | 1989-1990 | $18,400 |
| 2017-2018 | $37,600 | 1987-1988 | $17,100 |
| 2015-2016 | $36,900 | 1985-1986 | $16,100 |
| 2013-2014 | $36,000 | 1983-1984 | $15,000 |
| 2011-2012 | $34,000 | 1981-1982 | $12,900 |
| 2009-2010 | $33,700 | 1979-1980 | $10,200 |
| 2007-2008 | $31,400 | 1977-1978 | $8,900 |
| 2005-2006 | $29,400 | 1975-1976 | $7,700 |
| 2003-2004 | $28,000 | 1973-1974 | $6,500 |
| 2001-2002 | $26,800 | ★ 1972 | $6,500 |
| 1999-2000 | $25,400 | ||
| 1997-1998 | $24,400 |
★★ $6,500 to $49,100 is about 7.6 times over 53 years. The next reset is due around November 2026, so any amount on this page is dated: ours is verified 2026-10-10 and a page without a date should not be trusted on this figure.
★ Applying
- Application goes to the Property Valuation Administrator of the county where the property sits, not to the state, and not to your lender.
- ★ By 31 December of the eligible tax year. Ky. Const. § 170 itself speaks of filing with the local assessor by December 31 of the taxation period.
- ★ If you qualify after your tax bills are already paid, KRS 132.810(4)(d) entitles you to a refund of the tax applicable to the exemption value. That is worth knowing and it is rarely mentioned.
★ Four edges worth knowing
- ★ Manufactured housing counts. KRS 132.810(2)(g): a mobile home, an RV classified as real property under KRS 132.751, or a manufactured house qualifies as a residential unit.
- ★ Special benefit assessments are excluded. Section 170 exempts up to the assessed valuation "except for assessment for special benefits."
- It ends when the classification ends, and KRS 132.810(4)(a) says "In no case shall the exemption be prorated" for someone who held the classification at the end of the taxation period.
- ★ Report changes. 132.810(4)(b) requires a change in disability classification to be reported to the PVA.
★ Why a lender raises it
Because property tax is escrowed into the monthly payment we underwrite, and that payment feeds the VA's residual income test. A buyer holding the exemption has a structurally lower payment on the same house. Tell us before you are under contract so the escrow figure is right from the start. How residual income works.
Mike Certo, NMLS #260555. (480) 296-6513 · mcerto@cfmtg.com. We are a lender; the exemption is administered by county PVAs.
Frequently asked questions
How much is the Kentucky homestead exemption for 2026?
$49,100 of assessed value for the 2025 and 2026 assessment years, up $2,750 from the $46,350 that applied for 2023 and 2024. The Department of Revenue's own example is that a residence assessed at $200,000 is taxed on $150,900.Who qualifies for the Kentucky homestead exemption?
An owner of a permanent residence who is sixty-five or older, or who is classified as totally disabled under a program authorized or administered by an agency of the United States government or any retirement system within or outside Kentucky, having received disability payments and maintained that classification for the entirety of the taxation period.Can I claim the Kentucky homestead exemption twice if I am over 65 and disabled?
No. KRS 132.810(2)(e)1 allows only one exemption per residential unit even though the resident may be sixty-five and also totally disabled, and regardless of how many residents over sixty-five occupy the unit.Where does the Kentucky homestead exemption amount come from?
From a constitutional figure of $6,500. KRS 132.810 provides that the $6,500 in section 170 of the Constitution of Kentucky means $6,500 in terms of the purchasing power of the dollar in 1972, adjusted every two years if the United States Department of Labor cost of living index has changed as much as one percent.What if I qualify for the Kentucky homestead exemption after my tax bill is paid?
KRS 132.810(4)(d) entitles a person who applies and qualifies after property tax bills have been paid to a refund of the property taxes applicable to the value of the homestead exemption.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about VA home loan financing, not a loan commitment and not legal, tax or financial advice. Cornerstone First Mortgage is a private lender and is not affiliated with, endorsed by or acting on behalf of the U.S. Department of Veterans Affairs or any government agency. VA entitlement, funding-fee exemption and disability ratings are determined by the U.S. Department of Veterans Affairs. Kentucky's homestead exemption is established by section 170 of the Constitution of Kentucky and KRS 132.810 and is administered by county Property Valuation Administrators, not by Cornerstone; the amount is reset every two years by the Kentucky Department of Revenue and the tax effect depends on local rates. Housing market figures describe the twelve months to August 2026 and are not a forecast. Figures here carry the date we verified them against primary sources. All loans are subject to borrower, property and program qualification.