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Updated 2025 Tax Year

Kenai Peninsula County
Property Tax Guide

Everything you need to know about property taxes in Kenai Peninsula County, AK. Rates, due dates, exemptions, and how it affects your monthly payment.

9 Official Sources
8 min read
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Quick Facts
Tax Rate
0.8% to 1.2% of assessed value (varies by location and special taxing districts)
Exemptions
3+ Available
Section 1

How Property Tax Works

The Kenai Peninsula Borough operates a property tax system that funds essential local services including education, emergency services, road maintenance, and general government operations. Property taxes are the primary source of revenue for the borough, supporting both municipal services and the Kenai Peninsula Borough School District. The borough assesses properties at fair market value with no statutory assessment cap, meaning assessed values can fluctuate with market conditions.

Effective tax rates in Kenai Peninsula Borough typically range from approximately 0.8% to 1.2% of assessed value, though actual rates vary significantly by location within the borough due to special taxing districts and service areas. Properties may be subject to additional assessments for school bonds, road service areas, fire service areas, and other special districts, making it essential to understand your specific tax district when calculating your total property tax liability.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $1,000)Description
Borough General FundTBD*Basic municipal services, administration
School DistrictTBD*Kenai Peninsula Borough School District operations
School Bond Debt ServiceVariesVoter-approved school construction bonds
Fire Service AreasVaries by areaEmergency fire and medical services (where applicable)
Road Service AreasVaries by areaRoad maintenance and improvement (where applicable)
Special Assessment DistrictsVaries by districtWater, sewer, lighting, or other improvements

*The FY 2025-2026 tax rates have not yet been set by the Borough Assembly. Rates are typically finalized by summer 2025. Properties located in incorporated cities (Kenai, Soldotna, Homer, Seward) may have different rate structures. Contact the Kenai Peninsula Borough Assessor's Office at (907) 262-4441 for current rates and specific district information for your property.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Kenai Peninsula County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes are additional property tax assessments that occur when there are changes to a property's ownership, value, or use during the tax year. Common triggers include new construction completion, property transfers that result in reassessment, additions or improvements that increase assessed value, or corrections to the original assessment. The borough may issue supplemental tax bills throughout the year as these changes are processed.

Supplemental taxes are calculated by applying the current tax rate to the difference between the new assessed value and the previous assessed value, prorated for the portion of the tax year remaining. For example, if a $100,000 home improvement is completed and assessed in January, and the total tax rate is $10 per $1,000 of assessed value, the annual supplemental tax would be $1,000. Since the improvement was in place for the full tax year, the property owner would owe the complete $1,000 supplemental amount in addition to their regular property tax bill.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Less: Senior/Disabled Exemption (if applicable): -$75,000
  • Net Taxable Value: $225,000
  • Annual Tax (estimated at $10/$1,000): $2,250
  • Monthly Escrow: $187.50

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Less: Senior/Disabled Exemption (if applicable): -$75,000
  • Net Taxable Value: $525,000
  • Annual Tax (estimated at $10/$1,000): $5,250
  • Monthly Escrow: $437.50

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Less: Senior/Disabled Exemption (if applicable): -$75,000
  • Net Taxable Value: $925,000
  • Annual Tax (estimated at $10/$1,000): $9,250
  • Monthly Escrow: $770.83

Note: The $75,000 exemption requires annual application and qualification based on age (65+) or disability status. Tax rate used is estimated; actual rates vary by special taxing district and are set annually by the Borough Assembly.

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Section 5

Escrow & Property Taxes

Most mortgage lenders require borrowers to establish an escrow account for property taxes, collecting monthly payments along with principal and interest. Since Kenai Peninsula Borough tax bills are mailed July 1st with payment due October 15th, lenders typically collect 1/12 of the estimated annual tax amount each month and pay the borough directly when taxes are due. Your lender may also collect an additional cushion amount to ensure adequate funds are available.

Property owners should verify their escrow account annually when tax bills are issued, as lenders' estimates may differ from actual tax amounts. If your property taxes increase due to assessment changes or rate increases, your monthly escrow payment will be adjusted accordingly. You can request escrow account statements from your lender and should review them for accuracy, particularly after property improvements or successful assessment appeals that might affect your tax liability.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
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Section 6

Frequently Asked Questions

Q: When are property taxes due for FY 2025-2026? A: Tax bills are mailed July 1, 2025. The full amount is due October 15, 2025. Taxpayers may choose to pay in two equal installments: first installment due September 15, 2025, and second installment due November 15, 2025.

Q: What is the $75,000 exemption and how do I apply? A: The $75,000 exemption reduces the assessed value of your primary residence if you are 65 or older, or qualify due to disability. This is an exemption, not a credit, and requires annual application. Applications must be filed with the Borough Assessor's office by March 31st each year.

Q: Do I automatically receive property tax benefits? A: No, most property tax exemptions and credits require application and annual renewal. The borough does not automatically apply benefits even if you previously qualified. You must file appropriate forms by the March 31st deadline.

Q: How does the homestead exemption work? A: Kenai Peninsula Borough does not participate in the state homestead exemption program. However, the borough offers its own senior/disabled exemption program which provides up to $75,000 in assessed value reduction for qualifying residents.

Q: When are properties reassessed? A: The borough conducts ongoing assessment updates and may reassess properties annually based on market conditions. Property owners receive assessment notices in the spring, typically by May 1st, with appeal deadlines usually 30 days from the notice date.

Q: What are the penalties for late payment? A: Late payments incur interest and penalties. Contact the Borough Treasurer's office at (907) 262-4441 for current penalty rates and payment options if you've missed the deadline.

Q: Can I pay property taxes online? A: Yes, the Kenai Peninsula Borough offers online payment options. Visit the borough's official website or contact the Treasurer's office for available electronic payment methods and any associated processing fees.

Q: Why did my taxes increase if I didn't make improvements? A: Property taxes can increase due to assessment increases reflecting market value changes, tax rate increases approved by the Borough Assembly, or new special district assessments. Your property may also be subject to different special taxing districts based on location and services provided.

Verified Sources

Backed by 9 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Personal & Business Property Assessmentskpb.us
02
Tax Doc
Property Taxkpb.us
03
Tax Doc
Property Taxes | City of Homer Alaska Official Websitecityofhomer-ak.gov
04
Tax Doc
Property Tax Dateskpb.us
05
Real Property Assessmentskpb.us
06
2004-05-19 Council Packetweblink.ci.kenai.ak.us
07
Kenai Peninsula Boroughkpb.us
08
2019 Kenai Peninsula Borough Comprehensive Plancityofhomer-ak.gov
09
Tax Doc
Pay Your Property Taxkpb.us
All sources verified as of 2025 Tax Year

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