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Updated 2025 Tax Year

Anderson County
Property Tax Guide

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

10 Official Sources
8 min read
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Quick Facts
Tax Rate
Varies by district - typically 1.0-1.5% combined rate (county, school, special districts)
1st Due
Nov 1
Exemptions
5+ Available
Section 1

How Property Tax Works

Anderson County, Kentucky operates under the state's property tax system to fund essential local services including schools, roads, public safety, and county operations. Property taxes in Anderson County are administered by the Property Valuation Administrator (PVA) and collected by the Sheriff's office, with assessed values determined at 100% of fair cash value as required by Kentucky law.

The effective property tax rate in Anderson County varies by location within the county due to different combinations of taxing districts. Property owners may be subject to county taxes, school district taxes, and various special district assessments depending on their specific location. The Kentucky Department of Revenue oversees the overall property tax system, while local officials handle day-to-day administration and collection.

Tax bills are typically mailed in late summer, and property owners should be aware that actual tax rates can differ significantly based on which fire districts, library districts, or other special taxing jurisdictions serve their property. All property owners are encouraged to verify their specific tax rate and applicable credits with the Anderson County PVA office.

Section 2

What Makes Up Your Tax Bill

Note: Specific 2025 tax rates for Anderson County were not available in the provided data. Property owners should contact the Anderson County Property Valuation Administrator or Kentucky Department of Revenue for current levy year rates.

ComponentRateDescription
County GeneralTBDBasic county services and operations
School DistrictTBDAnderson County Schools funding
State RateTBDKentucky state property tax
Special DistrictsVariesFire districts, library districts, etc.

Important: Tax rates vary significantly by location within Anderson County based on special taxing districts. Fire districts, library districts, and other local service areas create different total tax rates for properties in different areas. Contact the PVA office at (502) 839-3041 for your specific location's tax rate combination for the current levy year.

Section 3

When Are Property Taxes Due?

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

First Installment
Nov 1
Delinquent after Dec 10
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 in Anderson County are additional property tax assessments that occur when there are changes in property ownership, new construction, or improvements made to existing properties during the tax year. These taxes ensure that property tax obligations are properly allocated between previous and new owners or reflect increased assessed values from improvements.

Common triggers for supplemental taxes include: the sale of property (requiring proration between buyer and seller), completion of new construction or major renovations, changes in property use that affect assessment, and corrections to the original assessment. The supplemental tax is calculated based on the difference between the original assessed value and the new assessed value, multiplied by the applicable tax rate for the remaining portion of the tax year.

For example, if a property owner completes a $50,000 addition to their home halfway through the tax year, and the local tax rate is 1.2%, the supplemental tax would be approximately $300 ($50,000 × 1.2% × 0.5 years remaining). Property owners typically receive supplemental tax bills separately from their regular annual property tax bill.

Example Calculation

Note: The following examples use estimated rates since specific 2025 Anderson County rates were not available. Contact the PVA for exact current rates.

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Less: Homestead Credit (if eligible): -$40,800 (application required)
  • Net Taxable Value: $259,200
  • Estimated Tax Rate: 1.1%
  • Annual Tax: $2,851
  • Monthly (if escrowed): $238

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Less: Homestead Credit (if eligible): -$40,800 (application required)
  • Net Taxable Value: $559,200
  • Estimated Tax Rate: 1.1%
  • Annual Tax: $6,151
  • Monthly (if escrowed): $513

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Less: Homestead Credit (if eligible): -$40,800 (application required)
  • Net Taxable Value: $959,200
  • Estimated Tax Rate: 1.1%
  • Annual Tax: $10,551
  • Monthly (if escrowed): $879

All tax credits require separate application and approval. Rates vary by specific location within Anderson County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Anderson County require borrowers to maintain an escrow account for property taxes, especially when the loan-to-value ratio exceeds 80%. The lender collects monthly payments equal to approximately 1/12 of the annual property tax bill along with the mortgage payment, then pays the tax bill directly to Anderson County when due.

Property tax bills in Anderson County are typically due by May 15th, with early payment discounts available if paid between September 15 and November 1 of the prior year (2% discount). Lenders usually pay taxes during the discount period to minimize costs. Property owners should verify that their lender has received and paid their tax bill on time, as the property owner remains ultimately responsible for payment even when using escrow.

If your property taxes increase due to reassessment or rate changes, your lender will adjust your monthly escrow payment accordingly. Lenders are required to provide annual escrow statements showing payments made and any surplus or shortage in the account. Property owners can request information about their escrow account at any time and should review their annual statement for accuracy.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are Anderson County property taxes due? A: Property taxes are due by May 15, 2025 for the current tax year. However, you can receive a 2% discount if you pay between September 15 and November 1 of the previous year.

Q: What tax credits are available and do they require application? A: The primary tax credit is the Homestead Credit for property owners age 65+ or totally disabled, which requires annual application with the PVA office. This credit reduces your tax bill directly and is not automatic - you must apply each year to maintain eligibility.

Q: How does the Homestead Credit work? A: The Homestead Credit limits assessment increases rather than reducing market value. For eligible applicants (65+ or totally disabled), it caps the taxable assessed value growth, potentially saving hundreds of dollars annually. You must file Form 62A023 with supporting documentation to qualify.

Q: How often are properties reassessed in Anderson County? A: Kentucky properties are reassessed annually by the PVA office. Property owners receive notice of any assessment changes and have appeal rights through the local Board of Assessment Appeals.

Q: What are the penalties for late payment? A: Late payments incur penalties and interest. Delinquent 2024 tax bills are turned over to the Anderson County Clerk on April 15, 2025. Taxpayers have until August 22, 2025 to avoid additional collection actions.

Q: Can I pay my property taxes online? A: Contact the Anderson County Sheriff's office at (502) 839-3456 to inquire about online payment options and accepted payment methods for property taxes.

Q: Why did my tax bill increase when rates stayed the same? A: Tax bills can increase due to higher assessed values from market appreciation, new construction, or changes in special district assessments that vary by location within Anderson County.

Q: What special districts might affect my tax rate? A: Anderson County properties may be subject to fire district taxes, library district assessments, and other special service districts depending on location. These create different total tax rates throughout the county.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Anderson County Board of Assessment Appeals by May 15th following the assessment notice. Contact the PVA office for appeal forms and procedures.

Q: Where can I get help with property tax questions? A: Contact the Anderson County Property Valuation Administrator at (502) 839-3041 for assessment questions, or the Sheriff's office at (502) 839-3456 for tax collection and payment questions.

Verified Sources

Backed by 10 Official Government Sources

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

01
Tax Doc
Motor Vehicle Property Tax Rates 2025revenue.ky.gov
02
Tax Doc
COMMONWEALTH OF KENTUCKY PROPERTY TAX RATESrevenue.ky.gov
03
Contractsandersoncountytn.gov
04
County
Delinquent Tax List - Anderson County Clerkandersoncountyclerk.ky.gov
05
Tax Doc
2025 PERSONAL PROPERTY TAX FORMS AND ...revenue.ky.gov
06
Tax Doc
The Collection Process for Property Tax Billsrevenue.ky.gov
07
Homestead Exemption - Department of Revenue - Kentucky.govrevenue.ky.gov
08
APPLICATION FOR EXEMPTION UNDER THE ...revenue.ky.gov
09
Tax Doc
Property Tax Exemptions - Department of Revenuerevenue.ky.gov
10
Tax Doc
Property Tax Forms and Instructions for Public Service ...revenue.ky.gov
All sources verified as of 2025 Tax Year

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