Lexington, KY real estate: buy or sell with a local AXEN agent
In Lexington your property tax rate depends on which city services your street gets: trash pickup, streetlights and street cleaning. Neighbors can petition for more services, but not fewer. Your sewer bill also comes from LEXserv, a city office, not from the water company.
What are the popular neighborhoods in Lexington?
Popular Lexington neighborhoods include Chevy Chase, Ashland Park, Gratz Park, Hamburg, Masterson Station and Beaumont. Each one prices differently, so ask your agent for recent sales in the ones you like.
Also near Lexington:
What should you know before buying a home in Lexington?
Use the Fayette County PVA tax district tool to see which services, and which tax rate, come with the home. Sign up for water with Kentucky American Water, and LEXserv sets up your sewer bill on its own. Every developed lot also pays a monthly Water Quality Management Fee.
The rules that apply everywhere in Kentucky are on the Kentucky page. These are the Lexington details that trip people up.
Get pre-approved →- City services set your tax rate. Lexington gives some areas trash, recycling and yard waste pickup, streetlights and street cleaning. The services a home gets decide its property tax rate. The PVA website has a tax district tool to check a home.
- Water and sewer come on two bills. Most homes get a water bill from Kentucky American Water and a separate LEXserv bill for sewer, landfill and the water quality fee. LEXserv bills can run 2 to 3 weeks behind the water bill.
- Every developed lot pays a stormwater fee. The Water Quality Management Fee is charged to developed property in Fayette County. A house or duplex pays 1 unit a month. One unit equals 2,500 square feet of roofs, drives and walks.
- Short stays need three approvals. Every short-term rental needs a Zoning Compliance Permit, a Business License and a Special Fees License renewed each year. A hosted rental also needs 2 papers proving someone lives there. Fines can reach $500 a day.
- Age 65 or older? Ask about the homestead exemption. Kentucky's homestead exemption can lower the tax on your home if you are 65 or older. Ask the Fayette County PVA how to apply.
What should you do before selling a home in Lexington?
Kentucky's transfer tax is 50 cents for each $500 of price, and it is charged to the seller. Keep paying LEXserv until you pay the bill marked FINAL. If you only get fee or landfill charges from LEXserv, call them yourself to move the account.
The seller pays the transfer tax.
Kentucky charges the seller 50 cents for each $500 of price, or part of $500. The county clerk collects it before the deed is recorded.
Close out LEXserv.
When you stop water with Kentucky American Water, they tell LEXserv for you. Keep paying LEXserv until the bill marked FINAL is paid.
Septic homes must call LEXserv.
If your LEXserv bill is only for the water quality fee or landfill fee, LEXserv will not hear from the water company. Call LEXserv to move the account, or you will keep getting billed.
Lexington real estate questions
Why is my neighbor's tax rate different from mine?
Lexington sets the rate by which urban services a home gets. Trash pickup, streetlights and street cleaning each change the rate. Check the PVA tax district tool for any address.
How do I appeal my assessed value?
First meet with the PVA. The inspection period starts the first Monday in May and runs two weeks. Then file with the County Clerk no later than one workday after it ends, with your opinion of the value.
Who sends the sewer bill in Lexington?
LEXserv, a city office. When you start water with Kentucky American Water, LEXserv gets your account on its own. Your first LEXserv bill may come late.
Can I Airbnb my Lexington home?
Only with a Zoning Compliance Permit, a Business License and a Special Fees License. The Special Fees License must be renewed every year.
Is a gift of a home to my child taxed?
Not usually. Kentucky does not charge transfer tax between parent and child, or grandparent and grandchild, when there is only token payment. Transfers between spouses are also exempt.
Buying or selling in Lexington? Talk to a local agent.
An AXEN agent who works in Lexington answers your questions for free. No cost to talk. No pressure to sign anything.