Covington Cut Its Property Tax Rate. Why Some Bills Still Went Up.

If you're buying a house in Covington this fall, the tax figure in your closing paperwork probably comes from last year's bill. That bill used a city rate that no longer exists and an assessed value that may also be out of date. Covington lowered its 2026 real estate rate to $0.262 per $100 of assessed value, down from $0.287, which the city's budget director called an 8.7% reduction, according to LINK nky. The same report notes that the new figure is the compensating rate, meaning the rate set to bring in the same amount of tax revenue as the year before.

So the city collects about the same total from existing property. What changes is which houses pay more of it. A lower rate on a specific house is only part of the story. The other part is how much that house's assessment rose compared with everyone else's.

The Break-Even Point Is About 9.5%

This was a reassessment year for Covington. Budget Director Joe Ewald told LINK nky in September that assessments rose about 12.7% overall. In the previous reassessment year they rose more than 20%. His summary of what the new rate does to individual owners was direct: "if your assessment increased by less than 9.5%, you'll pay less in taxes."

The 9.5% figure comes straight from the two rates. Divide the old rate by the new one and you get about 1.095. An assessment has to grow by that much before the lower rate stops saving the owner money. The table applies both rates to a hypothetical house assessed at $200,000 in 2025. It covers the city levy only.

The 2025 bill on this house was $574. In 2026, a house whose assessment held steady pays about $50 less. A house that tracked the citywide average pays about $16 more, and a house that jumped 20% pays about $55 more. All three owners saw the same "rate cut" in the headlines.

A citywide average of 12.7% means plenty of parcels rose by more than that and plenty by less. The Kenton County PVA says so plainly: "All properties do not change by the same percentage." It points to supply, demand, interest rates and amenities as factors. When you compare two Covington houses at similar prices, their 2026 city tax bills can move in opposite directions.

Why The Reset Landed In 2026

The timing follows a schedule. The PVA can revalue any property every year, but each parcel must also be physically inspected at least once every four years, with the county split into quarters. The PVA's 2023 to 2026 inspection schedule puts Covington in Quad 4 with Bromley and Ludlow: inspected in 2025, for taxable year 2026. Fort Mitchell is in Quad 1, which had its taxable year in 2023.

This matters for the houses this practice works with most. The PVA says it assesses property at fair cash value, meaning the price it would bring in a fair voluntary sale, and that "Transactions that occur in the market place determine value." It also says owners are responsible for reporting changes that could affect value, including additions. On a restored rowhouse, or a building converted from another use, the gap between last year's assessment and this year's can depend on work done since the last inspection. That's why the seller's prior bill is a weak guide to the bill you'll be paying.

What This Means At The Closing Table

The PVA's guidance for buyers is short. If you buy after January 1, you may not get a bill in your name until the following year. Your closing statement may require you to pay a bill still issued in the previous owner's name, and "Tax pro-rations are typically based upon the most recent tax bill available."

That creates a timing problem in Covington this year. City bills went out about a week later than usual. City Manager Sharmili Reddy told commissioners the delay came from problems with a banking partner's third-party bill preparation company. Any closing calculated before the 2026 bill arrived was likely based on the 2025 bill, which used the old rate and the old assessment. On a house whose value rose faster than the citywide average, that estimate comes in low.

A few dates and facts help frame questions for your lender, closing agent or tax professional:

• Appeals for 2026 are closed. The Kenton County Clerk's 2026 notice set the open inspection period as May 4 to May 18, with appeals due by 4 p.m. on Wednesday, May 20, 2026. A conference with the PVA was required before filing.
• The roll locks each spring. The PVA says the real property roll is open for 13 days starting the first Monday in May. Once assessments are certified, no changes can be made for that year.
• The city's payment deadline has moved. The City of Covington's October 15 notice gives owners until November 7, 2026 to pay without penalty. LINK nky reported November 6, and the city's general Finance page still lists the 2025 rate and an October 31 due date, so confirm with City Finance at 859-292-2180, option 1.

For a buyer, the practical point is that the assessment a house carries starting January 1 of next year is the one that will shape the next bill. The 2025 figure is the wrong starting point.

The City Chose This Rate

Kentucky's rules give local taxing districts three options under House Bill 44. They can adopt the compensating rate, adopt a rate that raises up to 4% more revenue from existing property, or go higher than that. The higher option requires a public hearing, and voters can petition to put it to a recall vote, according to the Kentucky Department of Revenue. The current recall procedure is in KRS 132.017, which was amended effective July 15, 2026.

Covington chose the lowest of those options, and the debate is on record. LINK nky reported that Ewald had asked for higher rates as a cautious budget move. Commissioner James Toebbe pushed back, pointing out that the payroll tax budget was set at $32,350,000 while the city finished last year at $34,143,331. The commission then voted unanimously for the compensating rate. The city's 2.45% payroll withholding is a large enough revenue source that the property tax side could hold flat. Kenton County went the same direction, lowering its real property rate to 11.3 cents per $100 from 11.5 cents, as reported by the NKY Tribune. LINK nky called the county figure the compensating rate.

The compensating rate also has a built-in exception. The Department of Revenue explains that a district collecting the compensating rate still gets additional revenue from assessments on new property. Covington's growth on the riverfront fits that category. The city and Silverman broke ground on July 28, 2026 on Riverstone Place at the Covington Central Riverfront. It is planned for about 269 market-rate apartments, 8,000 square feet of retail and 133 structured parking spaces. Once a project like that is complete and assessed, it adds to the tax base. Existing homeowners keep splitting a roughly fixed share among themselves, based on how each of their values moved.

The regional market is part of the picture too. Northern Kentucky REALTORS reported a September 2026 median sale price of $310,000 across the 12-county Northern Kentucky MLS region, up 0.2% from September 2025. In August 2026 the regional median was $319,950, up 6.7% year over year. Those are regional figures, not Covington figures. Even so, the PVA bases value on transactions, so a buyer's own purchase price becomes part of the sales record behind future assessments.

Frequently Asked Questions

Does the lower rate mean my whole Covington tax bill went down? Not necessarily. The $0.262 rate is only the city's share. Your PVA describes a full bill that can also include state, county, library, health, extension, fire district and school district taxes. Even the city's share goes up for parcels whose assessment rose more than about 9.5%.

Can I still appeal my 2026 assessment? The 2026 appeal period ended May 20, 2026. Kenton County's process starts with a conference with the PVA during the open inspection window each May.

When will Covington be physically inspected again? The current published PVA schedule runs through 2026 and places Covington's most recent physical inspection in 2025. The PVA can still revalue property in any year.

This post is general information, not legal, tax or financial advice. Please confirm how these rules apply to your property with the PVA, the City of Covington, or a qualified tax professional.

Before you make an offer on a historic Covington house, it helps to know whether its assessment is likely to hold steady or catch up to recent work. Rebecca Weber can walk you through the PVA record and renovation history of any house you're considering. Let's Connect.