Florence City Council approved a significant reduction in the city’s property tax rate at its September 1 meeting, continuing a three-year effort by Mayor Julie Aubuchon and Florence City Council to lower tax rates while maintaining the high quality services and investments residents and businesses expect from the city.
The city’s combined real property tax rate will decrease from $2.31 per $1,000 of assessed value in 2025 to $2.14 per $1,000 in 2026. This action marks the third consecutive year Florence has reduced its combined real property tax rate. The rate has declined from approximately $2.46 per $1,000 of assessed value in 2023 to $2.38 in 2024, $2.31 in 2025 and now $2.14 in 2026. Throughout that period, Florence has continued investing in public safety, infrastructure, parks and other essential city services while maintaining a strong financial position.
“Florence is in a strong financial position, and we believe our taxpayers should share in that success,” Mayor Aubuchon said. “City Council has been a strong partner in that effort. For three consecutive years, we have worked together to look closely at what the city needs to operate responsibly while also asking where we can reduce the burden on our residents and businesses. This year’s reduction continues that commitment.”
The city’s combined property tax rate consists of a base real property tax rate and a separate assessment used to help fund the city’s hazardous duty employee retirement obligations. For 2026, the base real property tax rate is $1.87 per $1,000 of assessed value, the same base rate adopted last year. The overall reduction comes from lowering the hazardous employees retirement assessment from $0.44 per $1,000 in 2025 to $0.27 in 2026. Although the city could legally levy a substantially higher assessment, the Administration recommended the lower amount, which was approved by city council.
The property tax reduction follows another significant tax cut approved by city council earlier this year. Effective July 1, 2026, Florence reduced its insurance premium tax rate from 5% to 4%, representing a 20% reduction in that tax rate. The city’s ability to reduce tax rates comes as Florence continues to experience economic growth and strengthen its approach to managing public funds.
“These reductions demonstrate what can happen when the Mayor, council and staff are all focused on the city’s long term financial health,” Mayor Aubuchon said. “We can continue investing in Florence, maintain the high level of services our residents expect and, when our financial position allows it, return some of that benefit to our taxpayers through lower rates.”
Media Contact:
Melissa Kramer, City Clerk / Public Relations Administrator
859-647-8177 | melissa.kramer@florence-ky.gov
