40510 Property Tax Rate

Property owners in ZIP code 40510 (Lexington, Kentucky) pay a median of $3,657/year in property taxes on homes valued at $725,000. This translates to an effective tax rate of 0.50%, which is 33% below the Kentucky state average of 0.75%.

The monthly property tax burden for a median-valued home in 40510 is approximately $305, which factors into escrow payments on mortgages. This ZIP code is located within Fayette County. This is $2,560 more than the Kentucky average of $1,097/year.

Compared to similar ZIP codes in Kentucky, 40510 has lower property taxes. ZIP codes with similar effective rates include 42207 (0.51%) and 42234 (0.51%).

In Lexington, property taxes represent approximately 2.3% of the median household income of $155,625, providing context for the relative tax burden on homeowners in this area.

Kentucky reassesses all property to market value at sale without a state cap — your Fayette County assessment will reset based on your purchase price when you close. Fayette County (home to Lexington) offers homestead exemptions for primary residences and enhanced exemptions for seniors 65+ and disabled owners; file with the Fayette County Property Valuation Administrator before the annual deadline. Visit the Fayette County PVA office or website immediately after purchase to claim your homestead exemption and confirm the filing deadline.