If you buy a home in Oldham County this fall, a 2026 property tax bill may already be out under someone else's name. Kentucky addresses that bill to whoever owned the property on January 1. That owner stays responsible for it unless the sales contract expressly hands the obligation to the buyer, and buyers and sellers often agree to split it, according to the Kentucky Department of Revenue. The Oldham County Sheriff's property tax FAQ puts the usual practice more plainly. The seller pays a prorated share at closing for the months they owned the home, and the buyer then pays the whole bill when it comes due.
So a November or December buyer is settling up on a bill shaped by decisions made in September. In 2026 those decisions produced three headlines that seem to contradict each other. The state rate went down, the county rate stayed put, and the school rate went up "4%." All three came from the same rule, which measures each new rate against a benchmark called the compensating rate.
The Number Every Rate Is Measured Against
Kentucky law defines a compensating tax rate: the rate that, applied to this year's assessments minus new property, brings in about what real property brought in last year. It's rounded up to the next tenth of a cent. KRS 132.010 sets out the formula. When assessments rise, the compensating rate falls, because a smaller rate on bigger values yields the same dollars.
The Department of Revenue traces the system to House Bill 44 from the 1979 Special Session. That law limits how fast local property tax revenue can grow without a public hearing or a possible recall petition. A taxing body has three basic choices. It can take the compensating rate, go up to 4% more revenue than the compensating rate would raise, or go past 4% and face a hearing plus a possible voter recall of the extra portion.
That means a rate that "holds steady" in a year of rising assessments is a revenue increase. A rate that "drops" may simply be the law catching up with property values.
Five Taxing Bodies, Same Assessments, Different Choices
Here is how the main bodies on an Oldham County bill set their rates in 2026, with each rate in cents per $100 of assessed value. The school district labels its figures by fiscal year:
| Taxing body | Compensating rate | Rate adopted in 2026 | What they chose |
|---|---|---|---|
| Commonwealth of Kentucky | Set by state formula | 10.3¢, down from 10.6¢ in 2025 | Rate cut required by the 4% rule |
| Oldham County Fiscal Court | 8.5¢ | 8.7¢, same as last year | Held above compensating |
| Oldham County Schools | 78.8¢, labeled 2027 | 82.0¢ for FY27, up from 81.2¢ | Raised to about 4% over compensating |
| Oldham County Public Library | 3.9¢, compensating | 3.9¢ | Took compensating |
| Oldham County Extension District | 1.4¢, compensating | 1.4¢ | Took compensating |
The state had no choice. Gov. Andy Beshear's July 16, 2026 announcement explains that when revenue growth from reassessments tops 4%, after leaving out new property and property in Tax Increment Financing districts, the prior year's rate has to come down. That happened for the sixth straight year. The cut reflects how fast assessed values rose.
The county kept the 8.7-cent rate it has carried for years. The Oldham Era reported that Fiscal Court approved it 8-1 at its Sept. 1 meeting. Chief Financial Officer Stan Clark said the unchanged rate should bring in $341,000 more than last year's total of over $8.3 million, and that $219,000 of that comes from new properties. That leaves roughly $122,000 coming from existing homes and parcels as their assessments rose. The rate didn't move, and those owners still pay more. Clark explained the court's reasoning to the Era:
The compensating rate "would decrease revenue" and it would "basically make the assumption that inflation doesn't exist."
The Era reported that Clark said the added revenue would mainly cover rising law enforcement and 911 wage and retirement costs. Judge-Executive David Voegele described the increase as "a few hundred thousand dollars over 25,000 households or something."
Why 0.8 Cents Became a "4% Increase"
WDRB+WAVE reported on Sept. 18, 2026 that Oldham County Schools raised its rate 4% to 82 cents, about $24 more a year on a $300,000 home. The station noted it was the district's first property tax increase since the 2022-23 school year. Measured against last year's 81.2 cents, though, 82 cents is about a 1% rise.
The 4% only makes sense against the compensating rate. The district's adopted-rate notice labels the new levy as its FY27 rate and lists the matching compensating rate, which it designates for 2027, at 78.8 cents on real property. Going from 78.8 to 82 cents is about 4.1%, which is right at the line the law draws. Under KRS 160.470, the part of a school levy that raises more than 4% over compensating-rate revenue from real property, excluding new property, can be recalled. The district's notice says its rate "is not subject to recall under KRS 132.017."
The revenue figures show the gap between rate and dollars. In fiscal 2026 the general-fund levy at 81.2 cents brought in $75,137,713.26. The district projects $82,159,480.64 at 82 cents, and $5,759,462.13 of that comes from new and personal property. The rate rose eight-tenths of a cent while projected revenue rose about $7 million. The district says the added money goes mostly to instruction, at $5,160,999.03, with the rest split among the building fund, transportation, maintenance and collection costs.
The school's compensating rate sat 2.4 cents below its prior rate, and that drop comes from higher values on existing homes.
What That Looks Like on a $350,000 Assessment
The school line carries most of the weight. Using the confirmed 2026 real property rates on a home assessed at $350,000:
| Line on the bill | Rate per $100 | Annual amount |
|---|---|---|
| Oldham County Schools | 82.0¢ | $2,870.00 |
| State | 10.3¢ | $360.50 |
| Oldham County | 8.7¢ | $304.50 |
| Library | 3.9¢ | $136.50 |
| Extension District | 1.4¢ | $49.00 |
The school figure matches the district's own impact table, which shows a $28 annual increase on a $350,000 home. The other four lines together add up to $850.50, less than a third of the school line. Fire district and public health levies also appear on Oldham County bills, but their 2026 rates are not included here. So the table shows the shape of a bill, not its total.
City Bills Run on Their Own Calendars
Inside city limits, a home carries a city tax too, and city schedules don't always match the county's.
- Crestwood: The Oldham Era reported that the City Commission approved a 10-cent rate at its Sept. 9 meeting. Mayor Jim Kramer said that rate has held for many years. The Oldham County Sheriff's Office sends and collects the city's bills for 4.25% of the city's gross revenue. Kramer said owners who pay before Nov. 1 get a 30% discount, and a 10% penalty applies once the new year begins. At 10 cents, a $350,000 assessment comes to $350 before that discount.
- Pewee Valley: The city collects its own taxes. Its 2026 schedule shows bills mailed Sept. 3, 2026, a 10% discount through Oct. 31, face value due by Nov. 30, and a 7% penalty starting Dec. 1 plus 1% each month after. The city's water quality fee gets no discount or penalty.
For countywide sheriff bills, the Department of Revenue's typical statewide schedule gives a 2% discount through Nov. 1, face value Nov. 2 through Dec. 31, a 5% penalty in January and larger penalties after Jan. 31. Exact local dates belong on the bill and with the Oldham County Sheriff. A buyer closing in mid-December in Pewee Valley could find the city bill already carrying its 7% penalty while the county bill, under the typical schedule, is still payable at face value. Your settlement statement should show which bills were paid, by whom and when.
This post is general information, not legal, tax or financial advice. For your own proration, bill payment or petition questions, check with your closing attorney, title company or a tax professional.
Quick Answers
If I close in December, will the 2026 bill come to me?
Kentucky addresses the bill to the January 1 owner, though it may be sent "in care of" a new owner. The January 1 owner stays responsible unless the contract assigns the obligation to the buyer. The Sheriff's FAQ says homeowners whose lender pays from escrow should forward the bill to the mortgage company.
How does a recall petition start?
Under current KRS 132.017, three qualified voters file an affidavit with the county clerk, and the full petition is due within 45 days of the levy's passage. A school-board petition needs the lesser of 5,000 district voters or 10% of the turnout in the last presidential election.
Where does my assessed value come from?
Kentucky's assessment date is January 1. Real property is assessed at estimated fair cash value, and the PVA must physically inspect every parcel at least once every four years. Owners can review their assessment with the PVA during the spring tax roll inspection period, which usually begins the first Monday in May.
If you're timing a sale or purchase around this year's bills, or weighing how a home's assessment fits into your monthly budget, Dee Amber Anderson and our team can walk through the tax figures on a specific Oldham County property with you and bring in the closing professionals who handle proration. Start by requesting a complimentary home valuation, and we'll include the current assessment in that conversation.
