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Updated 2025 Tax Year

Lee County
Property Tax Guide

Everything you need to know about property taxes in Lee 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
49.2¢ per $100 assessed value (varies by special taxing districts within county)
Exemptions
4+ Available
Section 1

How Property Tax Works

Lee County, Kentucky operates under a property tax system that funds essential local services including schools, public safety, infrastructure, and county operations. Property taxes are levied based on assessed values determined by the Property Valuation Administrator (PVA) and collected by the County Clerk. The 2025 property tax rate for Lee County is proposed at 49.2 cents per $100 of assessed value for both real and personal property, though actual rates can vary by location within the county due to special taxing districts.

Kentucky uses a system where property is assessed at 100% of fair cash value for residential property, with tax rates applied to this assessed value. Lee County property owners should note that their effective tax rate may differ from the base county rate depending on their location within special taxing districts such as fire districts, library districts, or other local service areas. The county's property tax system includes various tax credits and exemptions that can reduce your tax burden, but most require annual application and are not automatically applied.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100)Description
County General49.2¢Base Lee County property tax rate for FY 2025
School DistrictVariesAdditional levy for local school funding
Fire DistrictVariesFire protection services (location dependent)
Library DistrictVariesPublic library services (if applicable)
Special AssessmentsVariesInfrastructure, bonds, or other local improvements

Note: The 49.2¢ base rate is proposed for 2025 and subject to final approval. Actual total rates vary significantly by location within Lee County based on which special taxing districts apply to your property. Contact the Lee County Clerk's office for your specific total tax rate.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Lee 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 Lee County are triggered by changes in property ownership, new construction, or improvements that increase a property's assessed value during the tax year. When these events occur after the annual assessment date (January 1), a supplemental tax bill is calculated based on the increased value and the remaining months in the tax year.

For example, if you complete a $50,000 home addition in June, and your total tax rate is 0.60%, you would owe a supplemental tax of approximately $150 ($50,000 × 0.006 × 6/12 months remaining). Supplemental taxes are typically billed separately from your annual property tax and have their own due dates. Property owners have the right to appeal supplemental assessments during the designated inspection period.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Less: Homestead Credit (if applied): -$39,300 (typical credit amount)
  • Net Taxable Value: $260,700
  • Annual Tax (at 0.60% total rate): $1,564
  • Monthly (if escrowed): $130

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Less: Homestead Credit (if applied): -$39,300
  • Net Taxable Value: $560,700
  • Annual Tax (at 0.60% total rate): $3,364
  • Monthly (if escrowed): $280

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Less: Homestead Credit (if applied): -$39,300
  • Net Taxable Value: $960,700
  • Annual Tax (at 0.60% total rate): $5,764
  • Monthly (if escrowed): $480

Note: Tax credits shown require annual application to the PVA office. Total tax rates vary by location within Lee County based on special districts.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Lee County require property tax escrow accounts for borrowers with less than 20% equity. Your lender collects 1/12 of your estimated annual property tax with each monthly mortgage payment and pays the tax bill directly to Lee County when due. Lenders typically maintain a cushion of 2-6 months of tax payments in your escrow account to ensure adequate funds are available.

Your escrow account is analyzed annually, and you'll receive a statement showing the previous year's activity and any adjustment to your monthly payment. If property taxes increase due to reassessment or rate changes, your monthly escrow payment will be adjusted accordingly. You can verify that your lender has paid your property taxes by checking with the Lee County Clerk's office or accessing online payment records. If you pay your own property taxes, remember that payments are due by November 15, with a 2% discount available if paid by November 1.

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 property taxes due in Lee County for the current tax year? A: Property taxes are due by November 15, 2024 for the 2024 tax year. You can receive a 2% discount if paid by November 1, 2024.

Q: What is the homestead tax credit and how do I apply? A: The homestead credit limits annual assessment increases on your primary residence (typically to 4% per year) rather than reducing the property's market value. You must apply annually with the Lee County PVA office by the application deadline, usually in spring.

Q: Are there other tax credits available that require application? A: Yes, Kentucky offers various tax credits including disabled veteran credits, senior citizen credits, and agricultural exemptions. All require separate applications filed with the PVA office by specified deadlines, typically between January and May.

Q: How often are properties reassessed in Lee County? A: Kentucky law requires property to be assessed annually at fair cash value. The PVA reviews all properties each year, though not all properties receive physical inspections annually.

Q: What are the penalties for late property tax payments? A: Late payments incur penalties and interest charges. Contact the Lee County Clerk's office for current penalty rates and payment options for delinquent taxes.

Q: Can I pay my property taxes online? A: Check with the Lee County Clerk's office for current online payment options, as these services vary by county in Kentucky.

Q: How do I appeal my property assessment? A: During the annual inspection period, you can meet with the PVA to discuss your assessment. You have until the close of business the day following the last day of the inspection period to file an appeal.

Q: Why is my tax rate different from my neighbor's? A: Tax rates vary within Lee County based on special taxing districts such as fire districts, library districts, or school district variations. Your total rate depends on which districts serve your specific property location.

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
COMMONWEALTH OF KENTUCKY PROPERTY TAX RATESrevenue.ky.gov
02
Tax Doc
Property Tax - Department of Revenue - Kentucky.govrevenue.ky.gov
03
Tax Doc
Public Hearing and Special Meeting to Set Tax Rate to be ...lee.kyschools.us
04
Tax Doc
2025 PERSONAL PROPERTY TAX FORMS AND ...revenue.ky.gov
05
Tax Doc
The Collection Process for Property Tax Billsrevenue.ky.gov
06
Tax Doc
The Property Tax Calendar - Department of Revenuerevenue.ky.gov
07
County
Lee County Taxnacdashboard.nara.gov
08
APPLICATION FOR EXEMPTION UNDER THE ...revenue.ky.gov
09
Homestead Exemption - Department of Revenue - Kentucky.govrevenue.ky.gov
10
State
Budget of the United States Government, Fiscal Year 2025whitehouse.gov
All sources verified as of 2025 Tax Year

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