How property taxes are handled when you sell a Louisville house

When a Louisville house sells, the year's property tax is usually split at closing: the seller pays a prorated share for the part of the year they owned the house, and the buyer then pays the whole bill. Jefferson County bills are mailed by November 1 and are based on the house's value on January 1, so if you close between November and April, find out whether this year's bill is already out and which discount or penalty date applies before you sign the settlement statement.

Updated October 21, 2026

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Part 1 of 5

When the Jefferson County bill arrives

The Jefferson County Sheriff's Office collects property taxes and mails the bills by November 1 each year. Each bill is based on the assessed value of the property as of January 1 of that year. If yours has not arrived by the second week of November, the Sheriff will send a duplicate, or you can print a copy online.

What the bill costs depends on when it is paid. These are the Sheriff's standing dates; check them against the dates printed on your own bill. A deadline that falls on a weekend or a Sheriff's Office holiday moves to the next business day.

November 1 to December 1: 2 percent discount
December 2 to January 2: the face amount
January 3 to February 3: 5 percent penalty
February 4 to April 15: 10 percent penalty plus a 10 percent Sheriff's add-on fee

Part 2 of 5

Who pays what at closing

Kentucky taxes a property to whoever owned it on January 1. The bill is printed with the owner the Property Valuation Administrator had on record when the tax roll was prepared, and that name cannot be changed for the current year, so a bill can still arrive in your name after you have sold.

In practice the Sheriff's Office describes the usual split this way: the seller pays a prorated tax at closing for the portion of the year they owned the property, and the buyer is then responsible for the entire bill. The settlement statement is where that split is written down, and it is the document to check if a bill for a house you sold shows up later.

Ask your closing agent, before closing day, whether this year's bill is already out, whether it will be paid at closing or prorated, and which discount or penalty period it falls in on the closing date.

Part 3 of 5

If an older bill is still unpaid

Bills still unpaid at the close of business on April 15 move from the Sheriff to the Jefferson County Clerk, and the cost climbs quickly. The Clerk adds a 10 percent clerk fee, a 20 percent county attorney fee and a $10 lien fee, plus 1 percent interest a month, and an unpaid bill can be sold to a third-party purchaser who then holds a lien on the house.

Delinquent taxes do not stop a sale. The closing agent pays them off from the proceeds along with the mortgage, so the real question is how much they will take out of your check. List any unpaid years when you request offers so buyers can account for the payoff from the start.

Part 4 of 5

If you have the homestead exemption

Kentucky homeowners who are 65 or older, or classified as totally disabled, can exempt $49,100 of assessed value for the 2025 and 2026 tax periods on the home they live in on January 1. The exemption is tied to you and your primary residence, not to the house.

After you sell, tell the Property Valuation Administrator about the transfer, and apply again for the home you move to if it qualifies. The buyer has to qualify and apply on their own.

Part 5 of 5

A short checklist before you close

Five minutes with these saves a surprise bill later.

Print your latest bill from the Sheriff's site and note whether it shows as paid
Look up any unpaid older years with the County Clerk
Ask the closing agent how this year's taxes are being handled, in writing
Find the property tax line on the settlement statement before you sign it
Keep a copy of the settlement statement in case a bill arrives in your name next fall

Questions

Questions about this

I sold my house in the summer. Why did I get the tax bill in November?

Because the bill goes to the owner on record when the tax roll was prepared, and the name cannot be changed for the current year. Check your settlement statement: usually the seller's share was already paid at closing and the buyer is responsible for the bill itself.

What happens if the bill is not paid by April 15?

It moves to the Jefferson County Clerk, which adds a 10 percent clerk fee, a 20 percent county attorney fee, a $10 lien fee and 1 percent interest a month. The bill can then be sold to a third-party purchaser, who files a lien against the property.

Does a cash sale change how property taxes are handled?

No. The tax split works the same whether the buyer pays cash or uses a loan. The closing agent writes the split on the settlement statement and pays any delinquent bills from the sale proceeds.

Sources

Where the facts on this page come from, with the date each source was read.

Jefferson County Sheriff's Office: property tax FAQ, read October 21, 2026
Jefferson County Sheriff's Office: property tax payment schedule, read October 21, 2026
Jefferson County Clerk: delinquent taxes FAQ, read October 21, 2026
Jefferson County PVA: taxable to the January 1 owner (KRS 132.220), read October 21, 2026
Kentucky Department of Revenue: 2025-2026 homestead exemption, read October 21, 2026
Jefferson County PVA: homestead exemption, read October 21, 2026

Keep reading

Guides for specific situations

Guide 08Behind on property taxesYou can sell a Louisville house with delinquent property taxes, and the back taxes are paid from the sale proceeds at closing. Timing matters because the debt grows in steps. Jefferson County bills still unpaid when the Sheriff closes the books on April 15 go to the County Clerk as certificates of delinquency, which carry 12 percent annual interest plus a 10 percent clerk fee and a 20 percent county attorney fee. Each summer the Clerk sells certificates to third-party purchasers, who add their own fees and can file a foreclosure once the taxes have been delinquent for a year.
Guide 01Inherited a houseYou can sell an inherited Louisville house once someone has legal authority over the estate, which in Jefferson County usually means an executor or administrator appointed by the District Court's Probate Court. If the will grants a power of sale, the executor can sell without another court order. If it does not, District Court has to approve the sale first. A cash sale helps when the house needs work, sits empty, or the heirs live far away.
Guide 02Behind on paymentsIf you are behind on your mortgage in Louisville, you usually have time to sell before you lose the house. Kentucky foreclosures must go through court: the lender sues in Jefferson Circuit Court, gets a judgment, and only then does the master commissioner auction the house. Selling for cash before that auction pays off the loan from the proceeds and keeps a foreclosure sale off your record, as long as the offer covers what you owe or the lender approves a short sale.