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Updated 2025 Tax Year

Nelson County
Property Tax Guide

Everything you need to know about property taxes in Nelson 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
12.0 cents per $100 assessed value (base rate), varies by district with additional levies
Exemptions
4+ Available
Section 1

How Property Tax Works

Nelson County, Kentucky operates on a property tax system that serves as the primary funding mechanism for essential local services including public schools, fire protection, emergency services, and county government operations. Property owners in Nelson County pay taxes based on the assessed value of their real estate and personal property, with the Kentucky Department of Revenue conducting property assessments to determine fair cash value.

For the 2025 tax year, Nelson County has proposed a base property tax rate of 12.0 cents per $100 of assessed value, designed to generate approximately $5.5 million in revenue for county operations. However, your actual property tax rate will vary significantly depending on your specific location within the county, as various special taxing districts (such as school districts, fire districts, and library districts) impose additional levies. Total effective tax rates typically range from 0.8% to 1.2% of assessed value when all applicable district taxes are combined, though this can vary based on the specific services available in your area.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100)Description
Nelson County Base$0.12County government operations and services
School DistrictVariesLocal school district funding (varies by district)
Fire DistrictVariesFire protection services (if applicable)
Library DistrictVariesPublic library services (if applicable)
Health DistrictVariesPublic health services (if applicable)
Extension DistrictVariesAgricultural extension services (if applicable)

Rates shown are for FY 2025-2026 levy year. The Nelson County base rate of $0.12 per $100 is proposed and subject to final approval. Special district rates vary significantly by location within the county. Contact the Nelson County Property Valuation Administrator at (502) 348-1820 for specific rates applicable to your property address.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Nelson 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 Nelson County are additional property tax bills issued when there are significant changes to property ownership, value, or classification during the tax year. Common triggers include new construction completion, property transfers that remove exemptions, successful appeals that increase assessed value, or the addition of new improvements like pools or buildings.

Supplemental taxes are calculated by applying the current year's tax rate to the change in assessed value, prorated for the portion of the tax year remaining when the change occurred. For example, if you complete a $50,000 home addition in January and your total applicable tax rate is $1.00 per $100, you would owe approximately $500 in supplemental taxes ($50,000 ÷ 100 × $1.00). These supplemental bills carry the same interest rates and penalties as regular property taxes if not paid by their due dates, and payment is typically due within 30 days of the bill date.

Example Calculation

Example 1: $300,000 Property Value

  • Assessed Value: $300,000
  • Less Homestead Exemption: -$49,100 (if qualified and applied)
  • Net Taxable Value: $250,900
  • Total Tax Rate: $1.00 per $100 (example combined rate)
  • Annual Tax: $2,509
  • Monthly Escrow: $209

Example 2: $600,000 Property Value

  • Assessed Value: $600,000
  • Less Homestead Exemption: -$49,100 (if qualified and applied)
  • Net Taxable Value: $550,900
  • Total Tax Rate: $1.00 per $100 (example combined rate)
  • Annual Tax: $5,509
  • Monthly Escrow: $459

Example 3: $1,000,000 Property Value

  • Assessed Value: $1,000,000
  • Less Homestead Exemption: -$49,100 (if qualified and applied)
  • Net Taxable Value: $950,900
  • Total Tax Rate: $1.00 per $100 (example combined rate)
  • Annual Tax: $9,509
  • Monthly Escrow: $792

Note: Homestead exemption requires application and is not automatic. Actual tax rates vary by special taxing districts within Nelson County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Nelson County require property tax escrow accounts for borrowers with less than 20% down payment, though many homeowners choose escrow for convenience regardless of equity position. Your lender collects monthly escrow payments as part of your mortgage payment, typically calculating 1/12th of the estimated annual property tax bill plus a small cushion for rate increases.

Property tax bills in Nelson County are due by May 15th each year, with bills being transferred to the county clerk's office by April 15th. Lenders typically pay these bills directly from your escrow account before the due date to avoid penalties. However, it's important to verify that payments are made timely, as you remain ultimately responsible for property tax obligations even when using escrow. You should receive an annual escrow analysis from your lender showing the account activity, and any shortages or surpluses will be addressed through adjusted monthly payments or refunds. Property taxes become payable at face value after November 1st, so early payment options may be available through your lender's escrow management.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
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Section 6

Frequently Asked Questions

Q: When are Nelson County property taxes due for FY 2025-2026? A: Property taxes are due by May 15, 2025. Bills are transferred to the county clerk's office by April 15, 2025.

Q: What is the homestead exemption and how do I apply? A: The homestead exemption reduces your assessed value by $49,100 for the 2025-2026 assessment years. This is NOT automatic - you must apply with the Nelson County Property Valuation Administrator. Contact them at (502) 348-1820 for application requirements and deadlines.

Q: Are there other tax credits available in Nelson County? A: Yes, Kentucky offers various tax credits including disabled veteran exemptions, senior citizen exemptions, and disabled person exemptions. All require separate applications and documentation. Contact the PVA office for specific eligibility requirements and application deadlines.

Q: How often are properties reassessed in Nelson County? A: Kentucky requires property assessments to be updated annually to reflect fair cash value as of January 1st. The Property Valuation Administrator reviews property values each year and may adjust assessments based on market conditions and property improvements.

Q: How do I appeal my property assessment? A: You can appeal your assessment to the Nelson County Board of Assessment Appeals. Appeals must typically be filed by the third Monday in May. Contact the PVA office for specific deadlines and required forms for the current tax year.

Q: What happens if I pay my taxes late? A: Late property taxes in Nelson County accrue interest and penalties at the same rate as other delinquent taxes. Property becomes payable at face value after November 1st, and continued delinquency can eventually result in tax sale proceedings.

Q: Can I pay my property taxes online? A: Contact the Nelson County Clerk's office at (502) 348-1830 to inquire about online payment options and accepted payment methods for current year property taxes.

Q: Why is my tax rate different from my neighbor's? A: Tax rates vary within Nelson County based on special taxing districts. Your location determines which fire district, school district, and other special districts apply to your property, creating different total tax rates even within the same county.

Q: Do special districts affect my property taxes? A: Yes, special districts such as fire protection districts, library districts, and health districts can add to your total tax rate. These districts provide specific services and are funded through additional property tax levies that vary by location within Nelson County.

Q: What exemptions require annual reapplication? A: Most property tax exemptions and credits in Kentucky require annual application or renewal. Contact the Nelson County PVA office to confirm which exemptions you may be eligible for and their specific application deadlines, as missing deadlines can result in loss of benefits for that tax year.

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
Regulatory Impact Analysis for the Proposed ...nepis.epa.gov
03
State
HOME_IncomeLmts_State_KY_2...huduser.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
County
Untitled - Nelson County Fiscal Courtnelsoncountyky.gov
07
APPLICATION FOR EXEMPTION UNDER THE ...revenue.ky.gov
08
Homestead Exemption - Department of Revenue - Kentucky.govrevenue.ky.gov
09
Tax Doc
Property Tax Exemptions - Department of Revenuerevenue.ky.gov
10
County
BOOK 40 - Nelson County Fiscal Courtnelsoncountyky.gov
All sources verified as of 2025 Tax Year

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