Kentucky Homestead Exemption 2026: Property Tax Savings for Seniors and Disabled Homeowners

by Wes Williams

If you own a home in Laurel County or anywhere in Kentucky and you are 65 or older—or classified as totally disabled—you may be paying more in property taxes than you have to. Kentucky's Homestead Exemption is one of the most valuable, and most overlooked, tax breaks available to homeowners in the Commonwealth. Here is how it works in 2026 and how to claim it.

What Is the Kentucky Homestead Exemption?

The Homestead Exemption is a constitutional property tax break that reduces the assessed value of a qualifying homeowner's primary residence before taxes are calculated. For the 2025-2026 assessment cycle, the Kentucky Department of Revenue set the exemption at $49,100, up from $46,350 in the prior cycle—a $2,750 increase. That amount is subtracted from your home's assessed value, and your property taxes are calculated only on what remains.

For example, if your home is assessed at $200,000 and you qualify, you would only be taxed on $150,900 of value.

Who Qualifies?

Age 65 or older during the tax period, or
Totally disabled as classified by a public or private retirement system, and
You must own, occupy, and maintain the property as your personal residence as of the January 1 assessment date.

There is no income test to qualify. For homeowners qualifying by age, the exemption generally auto-renews each year. Those qualifying by disability typically must recertify annually.

How to Apply in Kentucky

You apply through your local Property Valuation Administrator (PVA). In our area that is the Laurel County PVA. You will complete the Application for Exemption Under the Homestead/Disability Amendment and provide proof of age or disability. Once approved on the senior path, you usually do not need to reapply as long as you continue to own and live in the home.

Why This Matters for Laurel County Homeowners

Property taxes are a real, recurring cost of homeownership, and this exemption can save qualifying seniors hundreds of dollars a year. If you are planning to retire in the area or are helping aging parents, it is worth confirming the exemption is in place. For a broader look at what it costs to own here, see our guide to the cost of living in London, KY, and if you are thinking about a move, our complete 2026 Laurel County relocation guide.

Property taxes are also a key advocacy issue for REALTORS®. Learn how the REALTOR® Party works to keep homeownership affordable in our post on what RPAC is and how it protects Kentucky homeowners.

Sources

This article is for general information and is not tax or legal advice. Confirm current amounts and eligibility with the Laurel County PVA or a qualified professional. Questions about buying or selling in Laurel County? Contact Wes Williams at Williams Elite Realty.