Understanding the Kentucky Homestead Exemption
It's a common question: at what age do seniors stop paying property taxes in Kentucky? The truth is, seniors do not stop paying property taxes entirely. However, Kentucky offers a significant financial benefit through the Homestead Exemption. This program reduces a home's taxable value for eligible individuals, leading to a lower property tax bill [1, 2].
Who is Eligible for the Homestead Exemption?
The Homestead Exemption is available to property owners who meet specific age or disability criteria and occupy the property as their primary residence on January 1st of the application year [1, 2].
Age-Based Eligibility
To qualify based on age, you must be 65 or older during the tax period for which you are applying [1, 2]. Proof of age is required, and while only one exemption is allowed per household, if one spouse is 65 or older, the age requirement is met [2].
Disability-Based Eligibility
Individuals under 65 who are classified as totally disabled by an authorized program, like the Social Security Administration, may also qualify [1, 2]. Documentation proving the disability is necessary, and annual reapplication is typically required, with some exceptions for permanent disabilities [1, 2].
Applying for the Homestead Exemption
The application process requires action; eligibility is not automatic [1, 2].
- Obtain the Form: Use "Revenue Form 62A350" from the Kentucky Department of Revenue website or your local county Property Valuation Administrator (PVA) office [1, 2].
- Gather Documents: Collect proof of age (for age-based) or disability classification (for disability-based) [1, 2].
- Submit to PVA: Send the completed form and documentation to the PVA office in your county [1, 2].
- No Annual Reapplication (for Age): Once approved based on age, reapplication is generally not needed unless you move [1, 2]. Disability-based exemptions may require annual renewal [1, 2].
The Financial Benefit
The exemption lowers your home's assessed value before taxes are calculated [1, 2]. For the 2025-2026 assessment years, the exemption is \$49,100 [4]. This amount is adjusted every two years for inflation [1, 2, 4].
- Example: A home assessed at \$200,000 with the exemption would be taxed on \$150,900, resulting in significant savings [1, 2].
Homestead vs. Disability Exemption Eligibility
| Feature | Age-Based Exemption | Disability-Based Exemption |
|---|---|---|
| Eligibility | 65 years or older | Classified as totally disabled |
| Application | One-time (unless moving) | Annual (some exceptions) |
| Documentation | Proof of age | Proof of disability |
| Key Requirement | Age | Disability status |
| Income Test | No | No |
| Renewal | Not required (unless moving) | Required annually |
Important Notes for Seniors
- Selling Your Home: The exemption doesn't transfer to a new owner. If you buy another home in Kentucky, you must reapply [1, 2].
- Mobile Homes: Mobile homes can also qualify if eligibility criteria are met [1, 2].
- Tax Bill: The exemption is applied before tax rates, so savings vary based on assessed value and local rates [1, 2].
For official information and forms, visit the Kentucky Department of Revenue website [1]. Your local PVA office can also provide specific guidance [2, 3].
Conclusion
While Kentucky seniors don't entirely stop paying property taxes, the Homestead Exemption offers crucial financial relief by reducing a property's taxable value [1, 2]. Applying for this exemption upon eligibility is a key step in managing finances and enhancing security in retirement [1, 2].
