The median list price of a home today in Louisville, Kentucky, is $154,900. The median property tax on a home of that value is $1,447. Property tax rates in Louisville have steadily increased the past two decades, due in large part to school district requirements. The increases have caused more than a little grumbling among property owners. When it’s time to pay real estate taxes, however, Louisville is a good place to own a home when compared to other cities. The Louisville property tax rate is a relatively reasonable 0.934 percent. This means, for every $100,000 in value, Louisville homeowners pay $934. That is not as good as what residents in Louisville, Colorado, pay ($639 per $100,000) for example, but it’s much better than what homeowners in Louisville, Ohio, fork over each year ($1,365 per $100,000). Louisville, Kentucky stacks up well in nearly any property tax rate comparison.
The real estate tax rate across the United States averages 1.192 percent, or $1,192 per $100,000 in real estate value. The average tax rate in Kentucky is 0.85 percent. According to the Tax Foundation, a nonpartisan, apolitical tax policy group, Kentucky ranked number 32 in the nation in property tax rates. This is one list where no one wants to brag they’re number one. That ignominious position belongs to New Jersey, which has an average rate of 2.38 percent, or $2,380 per $100,000 in value. A $300,000 home in Princeton, New Jersey carries a tax bill of $7,221. A house of the same value on Princeton Avenue in Louisville’s Highlands neighborhood has a tax bill less than a third of that at $2,802.
Before we look more specifically at how Louisville compares to other cities, please note that Louisville and Jefferson County are a merged government. There remains within the county dozens of small taxing districts such as fourth-class cities. Therefore, tax rates vary. For purposes of comparison, we’re using a median property tax rate.
How does Louisville compare to U.S. cities of similar population?
On a list of Louisville and ten other U.S. cities most similar in population, Louisville’s tax rate in on the low end. Compared to some cities, it’s on the very low end. Homeowners in six of ten cities most like Louisville in population pay $1000 or more per $100,000 in value. Of the ten cities similar in size, only Albuquerque, New Mexico and Fresno, California have lower rates than Louisville. Milwaukee, Wisconsin’s tax rate is more than 2.6 times higher. Here’s a more thorough comparison:
Fresno, California: $883
Albuquerque, NM: $931
Louisville: $934
Sacramento, California: $950
Nashville, Tennessee: $988
Las Vegas, Nevada: $1,019
Tucson, Arizona: $1,022
Oklahoma City, Oklahoma: $1,049
Portland, Oregon: $1,080
Baltimore, Maryland: $1,429
Milwaukee, Wisconsin: $2,486
How does Louisville’s tax rate compare to other cities in Kentucky?
Louisville, by far the largest city in Kentucky, has a higher real estate tax rate than the Kentucky average, which is 0.82 percent, or $820 per $100,000 valuation. Among the five largest urban areas in the state, Louisville is in the middle. Again, the figures are based on $100,000 in assessed value.
Bowling Green: $699
Owensboro: $913
Louisville: $934
Lexington: $940
Covington: $1,124
How does Louisville compare to other cities in the region?
Louisville comes out very good on a list of cities in nearby states. It has the lowest tax rate among them.
Louisville: $934
Nashville, Tennessee: $988
Indianapolis, Indiana: $1,080
St. Louis, Missouri: $1,383
Cincinnati, Ohio: $1,725
Chicago, Illinois: $1,861
Columbus, Ohio: $1,955
How does Louisville-Jefferson County’s tax rate compare to neighboring counties?
Counties in the metro area of Louisville, including  five counties across the Ohio River in Indiana, have tax rates below the national average.  In some cases, they are well below the national number. There are twelve counties within Louisville’s metro statistical area, and all of them can boast reasonable figures based on $100,000 in assessed value.
Harrison County, Indiana: $627
Washington County, Indiana $693
Scott County, Indiana: $729
Floyd County, Indiana: $783
Trimble County, Kentucky $784
Meade County, Kentucky $788
Spencer County, Kentucky $828
Clark County, Indiana: $829
Henry County, Kentucky $829
Shelby County, Kentucky: $902
Bullitt County, Kentucky: $924
Louisville: $934
Oldham County, Kentucky: $1,022
How are property valuations in Louisville changing?
Now for news that is better for home sellers than home buyers in the area. Though Louisville has generally benefited from low property valuations in recent years, that situation has begun to change slowly but steadily. Louisville-Jefferson County’s property valuation office, which assesses 260,000 residential properties, sent out more than 60,000 notices in 2015 regarding property value changes. Those changes represented a 15 percent increase, on average. Some property owners were hit with assessments much higher.  The property valuation administrator implied property owners have been spoiled by low valuations for too many years. Although property owners may argue that implication, the facts show Louisville continues to have a favorable tax rate compared to other cities similar in size and location.
2 Point Highlight
When it’s time to pay real estate taxes, Louisville is a good place to own a home compared to other cities
Louisville, Kentucky stacks up well in nearly any property tax rate comparison.
