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Updated 2025 Tax Year

Clay County
Property Tax Guide

Everything you need to know about property taxes in Clay 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 - base county rate plus school district, fire district, and special service assessments
Exemptions
4+ Available
Section 1

How Property Tax Works

Clay County, Kentucky operates on a property tax system that funds essential local services including public schools, county government operations, fire protection, and infrastructure maintenance. Property owners in Clay County pay taxes based on their property's assessed value, which is determined by the Property Valuation Administrator (PVA) and reassessed periodically to reflect current market conditions.

The effective property tax rate in Clay County varies by location within the county due to different combinations of taxing districts. While the base county rate structure provides a foundation, property owners may also pay additional assessments for school districts, special service districts, fire districts, and other local improvement areas. This means two similar properties in different areas of Clay County may have different total tax bills based on the specific taxing districts that serve their location.

Property taxes in Clay County are collected annually and represent a significant source of funding for local government services. Understanding your specific tax liability requires knowing not only your property's assessed value but also which taxing districts apply to your property location.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100 assessed value)Description
State Tax$0.45Kentucky state property tax (2024 rate)
County GeneralVariesClay County general operations
School DistrictVariesLocal school district funding
Special DistrictsVariesFire, water, sewer, or other special services
Total Estimated Range$0.75 - $1.25Combined rate depending on location

Note: These rates apply to the current tax year and are subject to annual changes. The 2025 state rate has not yet been published by the Kentucky Department of Revenue. Actual total rates vary significantly based on your property's location within Clay County and which special taxing districts serve your area. Contact the Clay County PVA office for your specific district combination and current rates.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Clay 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 in Clay County are additional property tax bills issued when there are changes to a property's ownership, value, or tax status during the current tax year. These supplemental assessments ensure that property taxes are properly allocated based on current property conditions rather than waiting for the next regular assessment cycle.

Common triggers for supplemental taxes include: change in property ownership, completion of new construction or major improvements, removal or addition of exemptions or credits, correction of assessment errors, or appeals that result in value changes. The supplemental tax is calculated as the difference between the new tax liability and what was previously billed, prorated for the portion of the tax year remaining.

For example, if a property owner completes a $50,000 home addition in July and the total tax rate is $1.00 per $100 of assessed value, they would receive a supplemental bill for approximately $250 ($50,000 ÷ 100 × $1.00 × 0.5 for half the tax year remaining). This supplemental amount would be due in addition to their regular annual property tax bill.

Example Calculation

Example 1: $300,000 Property Value

  • Assessed Value: $300,000 (100% of market value)
  • Less: Homestead Credit (if applicable): -$37,000*
  • Net Taxable Value: $263,000
  • Annual Tax (at $0.90 per $100): $2,367
  • Monthly Escrow: $197

Example 2: $600,000 Property Value

  • Assessed Value: $600,000 (100% of market value)
  • Less: Homestead Credit (if applicable): -$37,000*
  • Net Taxable Value: $563,000
  • Annual Tax (at $0.90 per $100): $5,067
  • Monthly Escrow: $422

Example 3: $1,000,000 Property Value

  • Assessed Value: $1,000,000 (100% of market value)
  • Less: Homestead Credit (if applicable): -$37,000*
  • Net Taxable Value: $963,000
  • Annual Tax (at $0.90 per $100): $8,667
  • Monthly Escrow: $722

*Homestead Credit shown is approximate and requires annual application. The credit amount and eligibility requirements may change yearly. Actual tax rates vary by specific taxing districts in your area of Clay County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Clay County require property tax escrow accounts to ensure timely payment of property taxes. Your lender collects monthly escrow payments along with your mortgage payment, deposits these funds into a dedicated escrow account, and pays your property taxes directly to Clay County when due.

Lenders typically collect escrow payments based on the previous year's tax bill plus a small cushion (usually 1-2 months of payments) to account for potential tax increases. Each year, your lender will conduct an escrow analysis to determine if your monthly payment needs adjustment based on actual tax bills and account balance. If taxes increase significantly, you may face an escrow shortage requiring either a lump sum payment or increased monthly payments.

Property owners should verify that their lender pays taxes on time, as you remain ultimately responsible for timely payment even when using escrow. Clay County provides online tools to verify payment status, and you should receive copies of tax bills even when paid through escrow. If you pay off your mortgage or choose not to escrow, you'll receive tax bills directly and become responsible for meeting Clay County's payment deadlines to avoid penalties and interest charges.

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 Clay County property taxes due for the current fiscal year? A: The first installment is due May 10, and the second installment is due May 15. You can pay the full year's taxes by November 1 and receive a 2% discount.

Q: What tax credits are available and do they require application? A: The primary credit is the Homestead Credit for residents 65+ or totally disabled, which requires annual application with the PVA. This credit is NOT automatic and must be filed by the application deadline to receive benefits.

Q: How does the Homestead Credit work? A: The Homestead Credit limits assessment increases rather than reducing market value. It caps how much your assessment can grow year-over-year, providing property tax stability for qualifying senior and disabled homeowners. You must apply annually with the Clay County PVA.

Q: How often are properties reassessed in Clay County? A: Kentucky law requires reassessment every few years, but the PVA may adjust individual property values annually based on market conditions, improvements, or other factors affecting property value.

Q: What happens if I pay my property taxes late? A: Late payments incur penalties and interest charges. Contact the Clay County Sheriff's office (tax collector) for specific penalty rates and payment options if you cannot meet the due dates.

Q: Can I pay my property taxes online? A: Contact the Clay County Sheriff's office to inquire about online payment options, as availability varies by county in Kentucky.

Q: How do special district taxes affect my bill? A: Your location within Clay County determines which special districts (fire, school, etc.) apply to your property. Each district adds its own tax rate, so identical properties in different areas may have different total tax bills.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Clay County Property Valuation Administrator within specific deadlines after receiving your assessment notice. The PVA can provide appeal forms and deadline information.

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
Tax Doc
Property Tax - Department of Revenue - Kentucky.govrevenue.ky.gov
04
County
Clay County Property Taxesnacdashboard.nara.gov
05
April 2026 - Department of Revenue - Kentucky.govrevenue.ky.gov
06
Tax Doc
2025 PERSONAL PROPERTY TAX FORMS AND ...revenue.ky.gov
07
Homestead Exemption - Department of Revenue - Kentucky.govrevenue.ky.gov
08
Tax Doc
Property Tax Exemptions - Department of Revenuerevenue.ky.gov
09
COMMONWEALT H OF KENTUCKYrevenue.ky.gov
10
0000277375-99-000020.txtsec.gov
All sources verified as of 2025 Tax Year

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