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Updated 2025 Tax Year

Mercer County
Property Tax Guide

Everything you need to know about property taxes in Mercer 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
Approximately 1.0% of assessed value (varies by taxing district and special assessments)
Exemptions
4+ Available
Section 1

How Property Tax Works

Mercer County, Kentucky operates under a property tax system that funds essential local services including schools, county government operations, emergency services, and infrastructure maintenance. Property owners pay taxes based on their property's assessed value multiplied by the applicable tax rate, which varies depending on your location within the county due to different taxing districts and special assessments.

The current property tax rate in Mercer County is approximately 1.0% of assessed value, though this can vary based on your specific taxing district and any applicable special assessments such as school bonds or fire district levies. Property is assessed at 100% of fair cash value as determined by the Kentucky Department of Revenue's guidelines. It's important to note that your actual tax rate may differ from the county average depending on which fire district, school district, or other special taxing districts serve your property location.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
Base County LevyVariable*County general operations, road maintenance, administration
School DistrictVariable*Mercer County Schools operating and capital expenses
Fire DistrictVariable*Local fire protection services (varies by district)
Health DepartmentVariable*Public health services
Library DistrictVariable*Mercer County Public Library operations
Total Rate~1.0%Combined rate for FY 2025-2026

*Specific rates vary by taxing district location within Mercer County. The combined rate of approximately 1.0% represents the average across all districts. Property owners should verify their exact rate with the Mercer County Property Valuation Administrator based on their specific address and applicable taxing districts.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Mercer 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 Mercer County are additional property tax assessments that occur when there are changes to property ownership, improvements, or new construction after the regular assessment date. These supplemental bills are calculated based on the difference between the old assessed value and the new assessed value, prorated for the remaining portion of the tax year.

Common triggers for supplemental taxes include new home construction, major renovations that increase property value, changes in property use classification, or corrections to previous assessments. For example, if you complete a $100,000 home addition in March and your tax rate is 1.0%, you would receive a supplemental tax bill for approximately $750 (representing 9 months of additional taxes: $100,000 × 0.01 × 9/12 months). Supplemental taxes are typically due within 30 days of the bill date and are separate from your regular annual property tax payment.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Less: Homestead Credit (if applicable): -$0 (requires application)
  • Net Taxable Value: $300,000
  • Annual Tax: $300,000 × 1.0% = $3,000
  • Monthly Escrow: $250

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Less: Homestead Credit (if applicable): -$0 (requires application)
  • Net Taxable Value: $600,000
  • Annual Tax: $600,000 × 1.0% = $6,000
  • Monthly Escrow: $500

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Less: Homestead Credit (if applicable): -$0 (requires application)
  • Net Taxable Value: $1,000,000
  • Annual Tax: $1,000,000 × 1.0% = $10,000
  • Monthly Escrow: $833

Note: Tax credits shown require annual application and approval. Homestead credits, where available, typically limit assessment increases rather than reducing current assessed value. Contact the Mercer County Property Valuation Administrator for specific credit eligibility and application requirements.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Mercer County require property tax escrow accounts for borrowers with less than 20% down payment or upon borrower request. Your lender collects monthly escrow payments along with your mortgage payment, typically calculated as your annual property tax bill divided by 12 months. Lenders are required to conduct annual escrow analyses and may adjust your monthly payment if there are significant changes in your tax bill.

Property taxes in Mercer County are due November 1st each year, with a 2% discount available for early payment by September 15th. Your mortgage servicer will typically pay the full annual amount directly to the Mercer County Sheriff's Office when due. You should receive an annual escrow statement from your lender showing the tax payments made on your behalf. If you pay taxes independently without escrow, you're responsible for ensuring timely payment to avoid penalties and potential tax certificate sales.

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Section 6

Frequently Asked Questions

Q: When are property taxes due in Mercer County? A: Property taxes for FY 2025-2026 are due by November 1, 2026. A 2% discount is available for payments made by September 15, 2026.

Q: What tax credits are available and do I need to apply? A: Tax credits in Kentucky may include homestead credits for primary residences and disability credits. Most credits require annual application through the Mercer County Property Valuation Administrator and are NOT automatic.

Q: How does the homestead credit work? A: Homestead credits typically limit annual assessment increases on your primary residence rather than reducing the current assessed value. You must file an application with supporting documentation to qualify, and approval is not automatic.

Q: How often are properties reassessed in Mercer County? A: Kentucky requires annual assessment updates. The Property Valuation Administrator reviews property values yearly based on market conditions and property improvements.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Mercer County Board of Assessment Appeals within specific deadlines after receiving your assessment notice. Contact the Property Valuation Administrator for appeal forms and procedures.

Q: What are the penalties for late payment? A: Late payments incur penalties and interest. Unpaid taxes may result in tax certificate sales, typically held in July of the following year.

Q: Can I pay property taxes online? A: Contact the Mercer County Sheriff's Office to verify current online payment options and accepted payment methods for property taxes.

Q: Why do tax rates vary within Mercer County? A: Different areas are served by different fire districts, school districts, and other special taxing districts, each with their own levy rates that combine to create your total tax rate.

Q: When is personal property tax due? A: Personal property taxes (vehicles, boats, business equipment) are due by May 15, 2026 for the current tax year.

Q: How do special district taxes work? A: Special districts like fire departments and library districts add their levy rates to your base county and school taxes. 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
County
Tax Administrator - MERCERCOUNTYmercercounty.ky.gov
02
Tax Doc
Motor Vehicle Property Tax Rates 2025revenue.ky.gov
03
Tax Doc
COMMONWEALTH OF KENTUCKY PROPERTY TAX RATESrevenue.ky.gov
04
County
Delinquent Tax Information - Mercer County Clerk, Kentuckymercercountyclerk.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
PZ02 Farmstead Exemption Zoning Permit.pdfmercercounty.ky.gov
08
record(7-3-2022).docxapps.legislature.ky.gov
09
State
2019 Real Estate Exemption List. ...apps.legislature.ky.gov
10
Working Budget General Fund Revenue ...mercer.kyschools.us
All sources verified as of 2025 Tax Year

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