Kentucky Disabled Veteran Property Tax Exemptions in 2026
Does Kentucky Exempt Disabled Veterans From Property Tax?
Kentucky provides a homestead exemption of $49,100 off assessed value for totally disabled Veterans, the same benefit available to all qualifying persons who are 65 or older or permanently and totally disabled. There is no separate tiered exemption by VA disability rating. A Veteran rated 100% permanent and total (P&T) by VA qualifies for the full $49,100 reduction. Partially rated Veterans do not receive a scaled exemption. File Form 62A350 with your county Property Valuation Administrator (PVA). [1] [2] [3]
Property tax exemptions are administered by Kentucky county PVAs, not by VA or VA Loan Network. This information is educational, not a tax assessment or mortgage approval.
Kentucky Veteran Exemptions at a Glance
Choose an area to jump to the law, dollar math, filing steps and edge cases for Kentucky property tax relief.
What Does Kentucky Law Actually Provide?
One homestead exemption, not a tiered Veteran-specific program.
Who Qualifies for the Exemption?
Total disability, homestead occupancy and application required.
How Do You Apply at the PVA?
File with the county PVA, not the sheriff or county clerk.
How Much Property Tax Could You Save?
Savings depend on county effective rates and total assessed value.
How Does the Exemption Affect a VA Loan?
Lower taxes reduce escrow and improve your DTI ratio.
Where Do Kentucky Veterans File by Installation?
Fort Knox, Fort Campbell, Blue Grass Army Depot and Guard units.
What About Surviving Spouses and Special Situations?
Survivor eligibility, rating changes and property transfers.
Is a Tiered Veteran Exemption Coming?
A bill was filed but never passed. Current law is the homestead only.
What Mistakes Can Cost You the Exemption?
Common errors with filing, forms and escrow timing.
Frequently Asked Questions
Straight answers to common Kentucky Veteran property tax questions.
Real-World Kentucky Veteran Scenarios
Buyer near Fort Knox, Fort Campbell spouse, partial rating and more.
Sources and Verification Method
Kentucky statute, Department of Revenue, VA.gov, CFPB and county data.
Kentucky’s homestead exemption is meaningful but modest. A $49,100 assessment reduction at the statewide median effective rate of 0.71% saves roughly $349 per year, or $29 per month. In higher-rate counties the savings are larger. There is no tiered exemption by VA rating. The property tax exemption hub compares Kentucky to states with larger Veteran-specific programs.
What Does Kentucky Law Actually Provide?
Kentucky’s property tax relief for disabled Veterans comes from the general homestead exemption under KRS 132.810 and Section 170 of the Kentucky Constitution. It is the same benefit available to all qualifying homeowners who are age 65 or older or permanently and totally disabled. [1] [2]
What Is the Homestead Exemption?
The Kentucky homestead exemption reduces the assessed value of a qualifying owner’s primary residence by a fixed dollar amount. For 2025 and 2026, that amount is $49,100. The exemption is adjusted periodically by the Kentucky Department of Revenue based on cost-of-living increases. [1]
What Kentucky Does Not Have
Kentucky does not currently have a separate disabled Veteran property tax exemption with tiers by VA rating percentage. A 50% rated Veteran receives no homestead benefit. A 100% P&T Veteran receives the same $49,100 exemption as any other totally disabled homeowner. [3]
The constitutional authorization for the homestead exemption appears in Section 170 of the Kentucky Constitution, which permits the General Assembly to exempt up to a specified amount of the assessed value of a residential property for owners who are 65 or older or who have been classified as totally disabled. The legislature implemented this through KRS 132.810. [2]
Who Qualifies for the Exemption?
A disabled Veteran qualifies for the Kentucky homestead exemption when VA has determined that the Veteran is permanently and totally disabled, and the property is the Veteran’s primary residence. A partial VA disability rating, even at 90%, does not qualify. [1] [3]
What You Need to Establish
- VA documentation confirming permanent and total disability (100% P&T or TDIU paid at the 100% rate)
- The property must be your primary residence, your homestead
- You must be the owner of record or a qualifying co-owner
- File Form 62A350 with the county PVA before the January 1 assessment date
- Have a Kentucky driver’s license or state ID matching the property address
Situations That Do Not Qualify
- Partial VA ratings (10% to 90%): no exemption under current Kentucky law
- Second homes or investment property: homestead must be primary residence
- Non-service-connected total disability: may still qualify through the general disability path, not the Veteran path
- Rental units on a mixed-use parcel: only the residential homestead portion qualifies
- Property held in an irrevocable trust: check with the PVA whether beneficial ownership qualifies
How Do You Apply at the PVA?
Kentucky uses county Property Valuation Administrators instead of county assessors. Each of the state’s 120 counties has its own PVA office. File Form 62A350, the Homestead/Disability Exemption Application, with the PVA for the county where your home is located. [1] [6]
Search for your county PVA on the Kentucky Department of Revenue website or call 502-564-8180 for the PVA directory. Near Military bases: Hardin County PVA (Fort Knox), Christian County PVA (Fort Campbell), Madison County PVA (Blue Grass Army Depot).
The Homestead/Disability Exemption Application is available at any PVA office or through the Kentucky Department of Revenue. This single form covers both the age-based and disability-based homestead exemptions.
VA disability rating letter confirming permanent and total status, Kentucky driver’s license or state ID matching the property address, and the property deed showing your name as owner.
Kentucky property is assessed as of January 1 each year. File before that date to receive the exemption for the upcoming tax year. Contact the PVA immediately after closing if you buy a home mid-year.
After filing, ask the PVA to confirm the exemption appears on your property record. Keep a copy of the signed application and all supporting documents.
Once the exemption is approved and appears on your tax bill, request an escrow re-analysis from your lender. Your monthly payment should decrease when escrow reflects the lower tax amount.
What to Bring to the PVA
- Form 62A350, completed and signed
- VA letter confirming permanent and total disability
- Kentucky driver’s license or state ID
- Property deed showing ownership
- Proof of primary residence if the address on your ID does not match
After the First Year
Kentucky generally does not require annual refiling once the homestead exemption is on your property record. However, if you move to a different property, you must file a new application at the new county PVA. If your disability status changes, notify the PVA. [1]
How Much Property Tax Could You Save?
The dollar value of the $49,100 exemption depends on your county’s combined effective tax rate. Kentucky’s statewide median effective rate is approximately 0.71%, but rates vary significantly by county, from under 0.60% near Fort Campbell to over 0.90% in the northern Kentucky suburbs. [7]
| County area | Approx. effective rate | Annual savings from $49,100 exemption | Monthly equivalent |
|---|---|---|---|
| Christian County (Fort Campbell) | 0.57% | $280 | $23 |
| Hardin County (Fort Knox) | 0.62% | $304 | $25 |
| Madison County (Blue Grass Army Depot) | 0.67% | $329 | $27 |
| Statewide median | 0.71% | $349 | $29 |
| Jefferson County (Louisville) | 0.86% | $422 | $35 |
| Campbell County (Northern KY) | 0.95% | $466 | $39 |
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These figures are illustrative. Your actual tax bill depends on the combined state, county, city and special district rates applied to your property’s assessed value. Kentucky law assesses residential property at 100% of fair market value, so the assessed value is the full appraised value, not a fractional assessment. [1] [7]
Comparison to Higher-Benefit States
Kentucky’s $49,100 exemption is substantially smaller than what some neighboring states provide. For a broader comparison across all 50 states, see the Disabled Veteran Property Tax Calculator. The exemption is meaningful when combined with other VA benefits, but Veterans considering a move should factor in the state-to-state differences. [3]
How Does the Exemption Affect a VA Loan?
A confirmed property tax reduction lowers the tax portion of your escrow, which reduces your total monthly PITI payment. That improves your debt-to-income ratio and may increase the purchase price you qualify for. It does not change the interest rate, erase principal or guarantee approval. [8] [9]
Before the Exemption
Illustrative $250,000 purchase near Fort Knox. Principal and interest at 6.5%: $1,580. Insurance: $125. Property tax escrow at 0.62%: $129.
Tax escrow is based on the full assessed value before the exemption.
After Exemption Approved
Same home, same rate. $49,100 off assessed value reduces the annual tax by approximately $304. New monthly tax escrow: $104.
A $25/month reduction. Combined with other VA benefits, the total impact is larger.
If you close on a home before the exemption is approved, your lender will escrow at the full tax rate. Once the PVA applies the exemption and it appears on the next tax bill, request an escrow re-analysis from your servicer. Under Regulation X (12 CFR 1024.17), servicers must conduct at least one annual escrow analysis and adjust the payment if shortages or surpluses exist. You do not have to wait for the annual review to ask. [9]
The exemption does not change your residual income calculation directly, but a lower total housing payment leaves more residual income after obligations. Kentucky falls in the VA’s South region for residual income purposes. For borderline files, every dollar of reduced housing cost helps. [8]
Where Do Kentucky Veterans File by Installation?
The PVA office you file with depends on which county your home is in, not which installation you are assigned to. Veterans near the same base may live in different counties with different tax rates. [6] [7]
| Installation | Common residence counties | Approx. effective rate | Median home value |
|---|---|---|---|
| Fort Knox | Hardin, Bullitt, Meade | 0.62% to 0.76% | $255,000 to $275,000 |
| Fort Campbell (KY side) | Christian, Trigg, Todd | 0.57% | $203,000 |
| Blue Grass Army Depot | Madison | 0.67% | $269,000 |
| Louisville area (Guard/Reserve) | Jefferson, Bullitt, Oldham | 0.76% to 0.90% | $257,000 to $405,500 |
For service members comparing housing allowances to payments near these installations, use documented current allowances and real tax data rather than assumed exemptions. If you are PCSing to Kentucky, contact the destination county PVA before closing to understand the timeline for exemption approval.
What About Surviving Spouses and Special Situations?
Surviving spouses may retain the homestead exemption under certain conditions. Rating changes, property transfers and co-ownership situations each require individual review by the PVA. [1] [2]
| Situation | What published rules indicate | Practical next step |
|---|---|---|
| Unremarried surviving spouse | May qualify to retain the homestead exemption if still occupying the same homestead and meeting age or disability requirements | File with the PVA with the Veteran’s death certificate, marriage documentation and proof of continued occupancy |
| Remarried surviving spouse | Remarriage may affect eligibility; the surviving spouse must still independently meet the age or disability test | Contact the PVA for a current eligibility determination |
| Disability rating increase | If a Veteran is upgraded to 100% P&T, they become eligible for the exemption | File Form 62A350 with the updated VA letter immediately |
| Disability rating decrease | If the Veteran is no longer totally disabled, the exemption is revoked unless the Veteran is age 65 or older | Notify the PVA; the age-based exemption may still apply |
| Property transfer | Moving to a new property in Kentucky requires a new application at the new county PVA | File before the January 1 assessment date at the new address |
| Mobile or manufactured home | Qualifies if it is the primary residence and is assessed as real property | Confirm with the PVA that the home is on the real property tax rolls |
Kentucky’s homestead exemption is tied to the property and the owner. Selling the home or moving out ends the exemption on that property. The VA home loan benefit itself is a separate federal program and is not affected by changes in the state exemption. [1]
Is a Tiered Veteran Exemption Coming?
Kentucky House Bill 639 was filed in the 2025 Regular Session by Representatives Griffee and Callaway. It proposed a new section of KRS Chapter 132 that would create a homestead exemption specifically for service-connected disabled Veterans, tiered by disability rating. [4]
What HB 639 Proposed
- A new exemption section separate from the general homestead
- Tiered amounts scaled by VA disability rating percentage
- Covered state, county, city and special district taxes
- Included mobile homes, manufactured homes and modular homes
- Surviving spouse continuation on the same permanent residence
- Effective for property assessed on or after January 1, 2026
What Actually Happened
- Introduced February 18, 2025
- Referred to House Appropriations and Revenue Committee on February 21, 2025
- No committee hearing was scheduled
- No vote was taken in committee or on the House floor
- The bill died in committee when the session ended
- As of November 2026, it has not been refiled
If HB 639 or a similar bill is refiled and enacted in a future session, this page will be updated. Until then, the only property tax exemption available to disabled Veterans in Kentucky is the $49,100 homestead exemption for totally disabled persons. Check with your county PVA or the VA disability benefits page for updates on pending state legislation. [4]
What Mistakes Can Cost You the Exemption?
The biggest mistakes are assuming a tiered Veteran exemption exists, filing at the wrong office, missing the assessment date and failing to update your mortgage servicer. [1] [6]
Before You File
- Confirm you have a VA letter showing permanent and total disability, not just a partial rating
- File with the PVA, not the county clerk or sheriff’s office
- Apply before the January 1 assessment date for the upcoming tax year
- Bring all required documentation in one visit if possible
- If you just closed on a home, file immediately and do not wait for the next January
- Keep a dated copy of the filed application
Before You Budget for a Home
- Use actual county tax rates, not a statewide average
- Do not assume a tiered exemption exists beyond the $49,100 homestead
- Separate annual tax savings from the one-time VA funding fee exemption
- Get the lender’s final payment and escrow assumptions in writing
- Do not assume an unapproved exemption in your VA loan affordability calculation
- Tell your lender about the exemption during preapproval so escrow is set correctly from the start
Real-World Kentucky Veteran Scenarios
These cases show how disability status, county rates and the lender’s underwriting interact in Kentucky. None is a guarantee of approval. [1] [7] [8]
100% P&T Buying Near Fort Knox
The Veteran’s VA letter confirms P&T status. Purchasing a $260,000 home in Hardin County at 0.62% effective rate. Without exemption: approximately $1,612 annual tax. With exemption: $49,100 off assessed value saves $304/year. The Veteran also saves $5,590 on the VA funding fee. Combined first-year benefit: roughly $5,894.
70% Disabled Near Fort Campbell
The Veteran has a 70% VA rating. Under current Kentucky law, no homestead exemption is available because the rating is not 100% P&T or totally disabled. The Veteran still benefits from the VA loan’s zero down payment and potential partial VA funding fee exemption if receiving disability compensation.
Widow Keeping the Family Home
The Veteran’s surviving spouse continues to occupy the homestead. She meets the age 65 threshold and files with the PVA to confirm that the homestead exemption continues. The exemption is now based on her own qualifying status (age), not the Veteran’s disability. She receives the same $49,100 reduction.
Veteran Goes From 80% to 100% P&T
After a rating increase, the Veteran now qualifies for the homestead exemption. The Veteran files Form 62A350 with the county PVA immediately. If filed before the January 1 assessment date, the exemption takes effect on the next tax bill. The Veteran also contacts the mortgage servicer to request an escrow re-analysis.
Frequently Asked Questions
Quick answers to common Kentucky Veteran property tax questions in 2026.
Do 100% disabled Veterans pay property taxes in Kentucky?
A 100% P&T Veteran qualifies for a $49,100 reduction in assessed value, not a full exemption. Property taxes on the value above $49,100 are still owed. Kentucky does not eliminate property taxes entirely for disabled Veterans.
Does Kentucky have a tiered property tax exemption by VA disability rating?
No. HB 639 proposed tiered exemptions in the 2025 session but was not enacted. Only the $49,100 homestead exemption for totally disabled persons is available under current law.
What VA documentation do I need for the Kentucky exemption?
You need a VA letter confirming permanent and total disability. A partial rating letter (10% to 90%) does not qualify. Bring the original letter to the PVA along with your Kentucky ID and property deed.
Where do I file for the property tax exemption in Kentucky?
File Form 62A350 with the Property Valuation Administrator (PVA) for the county where your home is located. Kentucky uses PVAs, not county assessors. Do not file with the county clerk or sheriff’s office.
What is the deadline for the Kentucky homestead exemption?
Kentucky property is assessed as of January 1 each year. File before that date to receive the exemption on the upcoming tax year’s bill. Contact the PVA immediately if you miss the deadline or close on a home mid-year.
Does the exemption change my VA loan payment?
Yes, indirectly. Lower property taxes reduce the escrow portion of your monthly PITI payment. Your principal and interest stay the same. Request an escrow re-analysis from your servicer after the exemption appears on the tax bill.
Can I combine the property tax exemption with the VA funding fee waiver?
Yes. They are separate state and federal benefits with different eligibility rules. The funding fee exemption is a one-time closing cost savings; the property tax exemption is a recurring annual reduction.
Does a surviving spouse keep the Kentucky homestead exemption?
A surviving spouse may retain the exemption if they independently qualify through age (65 or older) or their own total disability. The surviving spouse must continue to occupy the homestead and file with the PVA.
Does TDIU qualify for the Kentucky property tax exemption?
TDIU pays at the 100% rate but may or may not carry a permanent and total designation. Ask the PVA what specific VA documentation they accept. Do not assume TDIU alone meets the requirement.
I live on the Kentucky side of Fort Campbell. Do I file in Kentucky?
Yes. If your home is in Christian, Trigg or Todd County, you file with the Kentucky PVA. If your home is in Montgomery County on the Tennessee side, you file with Tennessee under different rules and exemption amounts.
Can I get the exemption on a rental property or second home?
No. The Kentucky homestead exemption applies only to your primary residence. Investment properties, rental units and second homes do not qualify.
Will my lender automatically adjust my payment after the exemption is approved?
Not automatically. Your lender must conduct at least one annual escrow analysis. You can also request a re-analysis at any time after the exemption appears on your tax bill. The lender should adjust your payment and refund any escrow surplus.
Sources and Verification Method
This article prioritizes current Kentucky statute, the Department of Revenue, VA.gov, the CFPB and verified county tax data. HB 639 bill status was verified directly on the Kentucky Legislature website. [1] [4]
- Kentucky Revised Statutes: KRS 132.810, Homestead Exemption. Exemption amount, qualifying conditions (age 65+, totally disabled), application through PVA, primary residence requirement.
- Kentucky Constitution, Section 170. Constitutional authorization for the homestead exemption for persons 65 or older or totally disabled.
- Military.com: Kentucky State Veterans Benefits. Confirms $49,100 homestead deduction for totally disabled Veterans (2025).
- Kentucky Legislature: HB 639 (2025 Regular Session). Bill status, sponsors, committee referral. Introduced 02/18/25, referred to Appropriations and Revenue 02/21/25, no further action.
- U.S. Department of Veterans Affairs: Disability Compensation. VA disability rating definitions, 100% P&T and TDIU distinctions.
- Kentucky Department of Revenue: Residential Property Tax. PVA directory, Form 62A350, homestead exemption application process.
- SmartAsset: Kentucky Property Tax Calculator. County-level effective tax rates, median home values and median annual tax payments.
- U.S. Department of Veterans Affairs: VA Funding Fee. 2026 funding fee rates (2.15% first-use, less than 5% down), disability-related exemptions.
- Consumer Financial Protection Bureau: Escrow Accounts. Escrow analysis requirements, 12 CFR 1024.17 annual analysis, shortage and surplus handling.
- U.S. Department of Veterans Affairs: VA Loan Eligibility. Service requirements, discharge criteria, surviving spouse eligibility.
What We Verified
KRS 132.810 homestead exemption amount ($49,100 for 2025-2026), HB 639 bill status (pending, never enacted), county-level effective tax rates, VA funding fee rates, VA disability categories, escrow analysis requirements and application procedures.
What Must Be Checked Locally
Your property’s actual assessed value, the combined effective rate for your specific address, whether your PVA accepts your specific VA documentation, and your mortgage servicer’s escrow adjustment timeline. This article cannot verify a particular parcel’s tax status.
Confirm Your Exemption Before You Set a Housing Budget.
Verify your total disability status with the PVA and get the actual tax estimate for the property you are considering. Then ask a VA loan specialist to build the payment, fee exemption and qualification picture together.