Lexington is part of the Lexington-Fayette Urban County Government in Fayette County, Kentucky. Kentucky imposes a real estate transfer tax of $0.50 per $500 of consideration (0.10%) on all deed transfers. The tax is collected by the county at the time of deed recording. There is no additional local transfer tax imposed by Lexington-Fayette beyond the state rate.
In Lexington and throughout Kentucky, the real estate transfer tax is paid by the grantor (seller) at closing. While this is the standard practice under state law, the purchase contract may assign the obligation differently. Buyers and sellers should confirm payment responsibilities with their real estate attorney or closing agent.
Certain Lexington real estate transactions may be exempt from Kentucky's transfer tax. Common exemptions include transfers between spouses, transfers to qualifying governmental entities, gifts with no monetary consideration, and transfers pursuant to a will or intestacy. Consult a Kentucky real estate attorney to determine whether your transaction qualifies for an exemption.