---
title: Kentucky Military & Veteran Property Tax Exemptions (2026)
slug: kentucky-veteran-property-tax-exemptions-2026
description: >-
  How Kentucky disabled veterans use the homestead exemption to cut property
  taxes, plus how the state taxes military pay. Talk with a VeteranPCS agent
  today.
publishedAt: '2025-11-28T09:00:00.000Z'
updatedAt: '2026-06-21T00:00:00.000Z'
author: VeteranPCS
categories:
  - Financial Guidance
canonical: 'https://www.veteranpcs.com/blog/kentucky-veteran-property-tax-exemptions-2026'
componentSlug: financial-guidance
stateSlug: kentucky
---
# Kentucky Military & Veteran Property Tax Exemptions (2026)

If you serve in the military or have served, it helps to know how Kentucky treats property taxes for veterans. Kentucky is home to Fort Knox south of Louisville and Fort Campbell on the Tennessee line, so it draws many military families after a PCS, which is short for Permanent Change of Station, the official military move from one duty station to another. Kentucky's main property tax break for disabled veterans is its homestead exemption, which lowers the value your taxes are based on. This guide explains how it works in plain language and points you to the state's own sources. Tax law changes, so treat these figures as a starting point and confirm the current amounts before you file.

## The Kentucky Homestead Exemption for Disabled Veterans

Kentucky's homestead exemption shields part of a home's value from property tax. As the [Kentucky Department of Revenue explains](https://revenue.ky.gov/Property/Residential-Farm-Commercial-Property/Pages/Homestead-Exemption.aspx), homeowners who are at least 65 years old, or who have been classified as totally disabled, can receive it. The exemption is subtracted from the assessed value of the home, and property tax is then figured on what remains.

For 2025 and 2026, the exemption amount is $49,100, as the Department of Revenue set in its [2025-2026 homestead exemption notice](https://revenue.ky.gov/News/Pages/DOR-Sets-2025-2026-Homestead-Exemption.aspx). For example, if your home is assessed at $200,000, your property tax would be based on $150,900 after the exemption. The state adjusts this amount every two years, so confirm the current figure before you file.

### Who Qualifies

A veteran usually claims this exemption through the total-disability door rather than the age door. To qualify on disability, you must be classified as totally disabled under a program run by an agency of the U.S. government, which includes a veteran who has a total service-connected disability rating from the U.S. Department of Veterans Affairs, known as the VA. The VA is the federal agency that rates service-connected disabilities.

One detail works strongly in veterans' favor. Most homeowners who claim on disability must reapply every year. But the Department of Revenue says a veteran of the U.S. armed forces who has a service-connected disability does not have to reapply each year once approved.

### Surviving Spouses

In Kentucky, the homestead exemption follows the qualifying owner. A surviving spouse can keep the benefit on the home if he or she independently meets the rules, such as being 65 or older or being classified as totally disabled. Because the details depend on your situation, confirm with your local property office before you count on it.

## How It Works With Local Property Taxes

Property tax in Kentucky is handled at the county level. You apply for the homestead exemption with your county Property Valuation Administrator, often called the PVA, who values property and processes the exemption. You file the state's [Application for Exemption Under the Homestead/Disability Amendment, Form 62A350](https://revenue.ky.gov/Property/Residential-Farm-Commercial-Property/Pages/Homestead-Exemption.aspx), with your VA award letter showing the total disability rating.

The homestead exemption is a fixed dollar reduction in your home's assessed value, not a full wipeout of the bill, so a veteran with a higher-value home still pays tax on the value above the exemption. Local tax rates differ from county to county, so the exact dollars vary. If you are weighing where to settle, our guide to the [military bases in Kentucky](/blog/what-military-bases-are-in-kentucky), our [PCS to Fort Knox guide](/blog/pcs-to-fort-knox-2026-guide), and our [complete Fort Campbell guide](/blog/complete-fort-campbell-pcs-guide) can help you picture the local cost of owning a home.

## Military Pay and Kentucky State Income Tax

Kentucky has a state income tax, but it treats military pay kindly. As the [Kentucky Department of Revenue's military tax page](https://revenue.ky.gov/Individual/Pages/Military-Tax-Issues.aspx) explains, all military pay received by active-duty members, reserve members, and National Guard members has been exempt from Kentucky income tax since 2010. In plain terms, Kentucky does not tax your active-duty military pay.

Military retirement pay gets a break too. Service members who retired before January 1, 1998, owe no Kentucky tax on their military retired pay. Those who retired later can exclude up to $31,110 of pension income, and some can exclude more if they had service before 1998. You use Schedule P to figure the exempt portion. VA disability compensation is not part of your federal income, so Kentucky does not tax it either. Kentucky uses a flat income tax rate that has been stepping down in recent years, so check the current rate with the Department of Revenue before you file.

## A Note for Military Spouses: MSRRA

If you are a military spouse, the Military Spouse Residency Relief Act, known as MSRRA, may matter to you. MSRRA is a federal law that lets a military spouse keep a home state for tax and voting purposes even after moving on military orders. You do not automatically become a Kentucky resident just because your service member got orders here.

Under the related federal rules, a service member, the spouse, or both may choose the service member's home state, the spouse's home state, or the service member's permanent duty station for residency. Because that choice affects both states' taxes, confirm yours before you file. For the homestead exemption in this guide, what usually matters most is whether the home is the qualifying owner's residence.

## How to Apply and Where to Verify

You apply for the homestead exemption with your county PVA, not the state directly, using Form 62A350 and your VA documentation of total disability. Because the exemption amount is reset every two years, confirm the current figure with the [Kentucky Department of Revenue](https://revenue.ky.gov/Property/Residential-Farm-Commercial-Property/Pages/Homestead-Exemption.aspx). The [Kentucky Department of Veterans Affairs](https://veterans.ky.gov/) can also help you sort out your benefits at no cost.

When you want a local read on a neighborhood and its tax rates, you can ask Shelby Johnson, a VeteranPCS agent in Lexington, Kentucky, for current listings and a sense of local property taxes.

If a VA loan is part of your plan, which is a home loan backed by the U.S. Department of Veterans Affairs, learn [what the benefits of a VA loan are](/blog/what-are-the-benefits-of-a-va-loan), see [how a zero-down VA loan works](/blog/how-does-a-0-down-va-loan-work), and read our [complete guide to buying your first home with a VA loan](/blog/complete-guide-to-buying-your-first-home-with-a-va-loan). When you are ready, you can [connect with a VeteranPCS lender](https://www.veteranpcs.com/contact-lender) or [connect with our VeteranPCS network in Kentucky](https://www.veteranpcs.com/kentucky).

## Frequently Asked Questions

### Do disabled veterans pay property taxes in Kentucky?

Kentucky does not erase the bill, but a totally disabled veteran can claim the homestead exemption, which shields $49,100 of the home's assessed value for 2025 and 2026. The tax is then figured on the remaining value. Confirm your eligibility with your county Property Valuation Administrator and the [Kentucky Department of Revenue](https://revenue.ky.gov/Property/Residential-Farm-Commercial-Property/Pages/Homestead-Exemption.aspx).

### How much is the Kentucky homestead exemption for 2026?

The homestead exemption is $49,100 for the 2025-2026 assessment years. It is subtracted from your home's assessed value, and the state resets the amount every two years, so verify the current figure before you file.

### Does Kentucky tax military retirement pay?

Partly. Members who retired before January 1, 1998, owe no Kentucky tax on military retired pay. Those who retired later can exclude up to $31,110 of pension income, and some can exclude more based on service before 1998. Active-duty military pay is fully exempt.

### Do veterans have to reapply for the Kentucky homestead exemption every year?

No. While many homeowners who claim on disability must reapply yearly, the Department of Revenue says a veteran with a service-connected disability does not have to reapply each year once approved.

### Can a surviving spouse keep the Kentucky homestead exemption?

A surviving spouse can keep the exemption on the home if he or she independently qualifies, such as by being 65 or older or being classified as totally disabled. Confirm the details with your county Property Valuation Administrator.

Property tax rules and dollar amounts change from year to year, and your situation may have details a general guide cannot cover. Please consult a tax professional or attorney before making decisions based on this exemption, and verify the current rules and amounts with your county and the Commonwealth of Kentucky before you file.

_This content is for informational purposes. Consult a professional for personal financial decisions._