Homestead exemption increased by $2,000

 The maximum homestead exemption on real estate owned by qualified persons has been set at $36,000 for the 2013 and 2014 tax periods. The 2013-14 exemption reflects a $2,000 increase over the 2011-12 exemption of $34,000.

The amount of the homestead exemption is adjusted every two years in accordance with KRS 132.810 to compensate for changes in the purchasing power of the dollar. The exemption provided state and local property tax savings of about $171 million for more than 416,000 elderly or disabled Kentuckians during the 2012 tax year.

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