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Updated 2025 Tax Year

Montgomery County
Property Tax Guide

Everything you need to know about property taxes in Montgomery 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
Base county rate plus district assessments - varies significantly by location within Montgomery County
Exemptions
4+ Available
Section 1

How Property Tax Works

Montgomery County, Kentucky operates under the state's property tax system to fund essential local services including public schools, county government operations, emergency services, and infrastructure maintenance. Property taxes are assessed annually based on the property's fair market value as determined by the Property Valuation Administrator (PVA), with different tax rates applied by various local taxing districts.

The effective property tax rate in Montgomery County varies significantly by location within the county due to overlapping special taxing districts such as school districts, fire districts, and municipal services. While the base county rate provides a foundation, property owners may pay additional assessments depending on which districts serve their property. Tax bills are typically due by December 31st each year, though specific payment schedules may vary by district.

Property owners should note that most tax credits and exemptions require separate applications and are not automatically applied to tax bills. The county's assessment and collection process follows Kentucky state guidelines, with properties reassessed periodically to maintain current market valuations.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100)Description
Motor Vehicle/Watercraft$3.70FY 2025 rate for personal property vehicles
Real Property BaseVariesBase county levy (varies by jurisdiction)
School DistrictVariesLocal school district assessment
Municipal ServicesVariesCity-specific rates where applicable
Fire DistrictVariesFire protection district assessment
Library DistrictVariesPublic library services (if applicable)

Note: These rates apply to the FY 2025-2026 levy year. Real property tax rates vary significantly by local jurisdiction and special taxing districts within Montgomery County. Motor vehicle and watercraft properties are subject to the standardized $3.70 per $100 of assessed value rate. Property owners should contact the Montgomery County PVA office for specific rates applicable to their property location.

Special taxing districts create substantial variation in effective tax rates across the county, with some properties paying additional assessments for services like enhanced fire protection, library services, or municipal utilities.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Montgomery 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 property taxes in Montgomery County are additional assessments that may be levied when property circumstances change during the tax year. The most common triggers include ownership transfers, new construction completion, property improvements, or corrections to the original assessment that increase the property's taxable value.

When supplemental taxes are assessed, they are calculated based on the difference between the original assessed value and the new assessed value, prorated for the portion of the tax year remaining. For example, if a $50,000 home addition is completed in July, the supplemental tax would apply to that additional assessed value for the remaining months of the tax year.

Property owners typically receive supplemental tax bills separately from their regular annual property tax statement. These bills follow the same payment schedule and penalty structure as regular property taxes, with payment generally due within 30 days of the bill date. Failure to pay supplemental taxes can result in the same collection actions as unpaid regular property taxes, including potential tax lien placement.

Example Calculation

Example 1: $300,000 Property

  • Assessed Value: $300,000 (100% of market value)
  • Less: Homestead Credit (if qualified): $38,500
  • Net Taxable Value: $261,500
  • Annual Tax (est. 1.2% effective rate): $3,138
  • Monthly Escrow: $262

Example 2: $600,000 Property

  • Assessed Value: $600,000 (100% of market value)
  • Less: Homestead Credit (if qualified): $38,500
  • Net Taxable Value: $561,500
  • Annual Tax (est. 1.2% effective rate): $6,738
  • Monthly Escrow: $562

Example 3: $1,000,000 Property

  • Assessed Value: $1,000,000 (100% of market value)
  • Less: Homestead Credit (if qualified): $38,500
  • Net Taxable Value: $961,500
  • Annual Tax (est. 1.2% effective rate): $11,538
  • Monthly Escrow: $962

Important Notes: Homestead credit amounts and effective tax rates are estimates and vary by specific location within Montgomery County. Tax credits require separate application and are not automatically applied. Actual rates depend on the combination of local taxing districts serving each property.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Montgomery County require property tax escrow accounts for borrowers with less than 20% down payment, though some lenders mandate escrow regardless of down payment amount. The lender estimates annual property taxes and divides this amount by 12 to determine monthly escrow payments, which are collected along with principal and interest payments.

Lenders typically maintain a cushion in escrow accounts, usually equivalent to 2-3 months of tax payments, to ensure sufficient funds are available when tax bills become due. Property tax payments are generally made directly by the lender to Montgomery County on behalf of the homeowner, typically in December when annual taxes are due.

Property owners should review their annual escrow analysis statements carefully and notify their lender immediately of any changes that could affect property taxes, such as successful appeals of assessed values or qualification for new tax credits. If escrow payments prove insufficient to cover actual tax bills, lenders will require increased monthly payments to cover the shortage plus replenish required reserves.

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 Montgomery County? A: Regular property taxes are typically due by December 31st for the current tax year. However, due dates may vary by specific taxing district. Personal property returns, including motor vehicles, are due by May 15th each year.

Q: What tax credits are available and do they require application? A: The primary tax credit is the Homestead Exemption for property owners age 65+ or totally disabled, which requires annual application with the PVA. This credit reduces assessed value by up to $38,500. All tax credits require separate application and are not automatically applied.

Q: How does the Homestead credit work? A: The Homestead credit doesn't reduce market value but limits assessment increases and provides a direct reduction in assessed value. Qualified applicants receive up to $38,500 reduction in assessed value. Applications must be filed with the Montgomery County PVA office by the specified deadline.

Q: How often are properties reassessed? A: Kentucky conducts property reassessments periodically, though not on a fixed schedule. The PVA may update individual property assessments annually based on market conditions, sales data, or property changes.

Q: What are the penalties for late property tax payment? A: Late payment penalties vary by taxing district but typically include interest charges and potential collection fees. Unpaid taxes may result in tax liens against the property and eventual tax sale proceedings.

Q: Can I pay property taxes online? A: Online payment options may be available through the Montgomery County Sheriff's office or individual taxing district websites. Contact the appropriate collector's office for current online payment options and any associated convenience fees.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Montgomery County Board of Assessment Appeals within the specified appeal period, typically following receipt of assessment notices. Appeals require evidence supporting your claimed property value.

Q: Why do tax rates vary within Montgomery County? A: Tax rates vary because properties may be served by different combinations of special taxing districts including school districts, fire protection districts, library districts, and municipal services, each with separate tax levies.

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 Rates - Department of Revenue - Kentucky.govrevenue.ky.gov
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
Property Tax Forms and Instructions for Public Service ...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
State
2019 Real Estate Exemption List. ...apps.legislature.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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