An Overview of Nevada Property Taxes

Property taxes are a significant source of revenue for local governments in Nevada. They fund public education, infrastructure, law enforcement, and libraries. Understanding how property taxes in Nevada are assessed helps potential home buyers make informed financial decisions. 

Here, we explain how Nevada property taxes value properties and set rates. Learn how to make a tax appeal and if the tax burden is low.

About Nevada Property Taxes

Good news if you’re moving to Nevada: the state ranks in the top ten lowest for property tax burden. In 2024, it was ninth, with an average effective property tax rate of 0.59%. Effective property tax rates measure the percentage of home value owners pay in taxes compared to the home’s value. By dollar amount, Nevada homeowners paid an average of $1,369.00.

Nevada’s property tax system is complex and involves collaboration between multiple state and local agencies. Oversight happens with multiple agencies, like the:

• Nevada Department of Taxation
• Nevada Tax Commission
• Appraiser Certification Board
• County Commissions
• County Treasurers

Each agency plays a role in setting or administering residential property taxes. Some oversee the appraisal methods used, while others estimate the cost of operations for local services.

The Nevada Constitution provides some guidance on how real property will be taxed. It requires the legislature to set a “uniform and equal rate of assessment and taxation.” 

Today, the legislature defines a property’s taxable value as equal to the sum of the full cash value of the land plus the building’s current replacement cost, with the depreciation of improvements subtracted. 

Additionally, the taxable value can’t be more than what it calls “full cash value,” which you may know as “fair market value.” It’s the price the property would most likely sell for under current real estate market conditions in a fair sale.

Assessment of Property Value

The property tax process begins with the assessment of property value. In Nevada, the county assessor’s office handles this. The property tax assessment is based on a home’s market value and replacement cost.

Market value estimates the price a property would sell for under current market conditions given similar market sales. Replacement cost is how much the owner would pay to replace or reproduce the property with a similar one at current building costs minus depreciation.

The property’s assessed value is calculated once the market and replacement values are set.

In Nevada, the assessed value is a percentage of the taxable value. State law limits taxation to 35% of the assessed value. That means if a property’s taxable full value is $200,000, the assessed value would be 35%, which is $70,000.

County assessors update property values every year. 

Determining Nevada Property Tax Rates

Local government entities such as county commissions, school districts, and other taxing agencies set the tax rates. The rates are determined after budget hearings and review by the State Department of Taxation, a process that usually wraps in June of a given year.

These rates are expressed in mills. In Nevada, one mill is $1 per $100 of assessed value. 

Nevada’s Constitution limits property tax rates to no more than $0.05 per every $1 of assessed value. That means you can only pay up to $5 for every $100 of assessed value. That $70,000 home from above would have a tax limit of $3,500.

The Legislated limit is actually lower, with a property tax rate limit of $3.66 per $100 of assessed value. The example home’s new cap is $2,562.

There are some more legislated property tax rates. The county-based school tax is $0.75 per $100 assessed value. A tax of $0.01 per $100 funds cooperative extension work. A state debt rate tax for funding capital improvement projects was $0.15 per $100 in 2023. Voters can also approve tax overrides. Any special assessments have a 30-year limit.

The actual total property tax rate for a property is the sum of the rates imposed by all the taxing entities in the property’s location. That would combine county, city, and special district taxes.

Counties adjust their tax rates in response to budgetary needs and property value changes. For instance, increasing property values decreased Clark and Douglas County’s average tax rate in 23-24.

Nevada publishes a local government finance Redbook every year that breaks down the budgets and tax rates for each individual taxing unit. 

Current Property Tax Rates

Actual annual property taxes will change, so check with the local county assessor for the most recent tax rates. Population growth rates and land value changes influence local budgets.

In Clark County, Nevada’s most populated county, residents have multiple taxing districts–112 to be exact. That reflects the county’s land size and population. Your home could fall into several individual tax districts. For example, if you live in North Las Vegas, you could be under the city, city library, city redevelopment, and city 911 taxing districts. Revenues from property taxes total over $3 billion in Clark County, which funds a lot of services.

Based on tax rates alone, for the 2024-2025 tax year, Boulder City Library had the highest individual tax rate in Clark County at 5.2194. Mount Charleston Town & Fire came next at 3.403. Unincorporated county areas had the lowest rates at 2.5017. 

Statewide, the average property tax rate was 3.173 in 2022-2023. Looking at average countywide tax rates for that year, here are the highest and lowest tax rates in Nevada:

Highest Tax Rate		Lowest Tax Rate
Mineral County	3.66	Eureka County	1.8786
White Pine County	3.6591	Humboldt County	2.5143
Washoe County	3.6472	Lincoln County	3.056

Just remember tax rates don’t tell the whole story. Nevada tax abatements and property values play a part in what you’ll actually pay. Take Mineral County; even though its average tax rate was the highest, it generated the second-lowest total revenue from its tax base.

Property Tax Caps

Nevada has caps to prevent excessive property tax rate increases from year to year. Local county governments can’t increase revenue from property taxes by more than 6% year-over-year. The annual tax increase is capped at 3% for qualifying owner-occupied residential properties. The home must be designated as your primary residence. Some low-income rental properties may also qualify for the 3% cap. 

Second homes, business personal property, and commercial real estate is capped at 8%. New construction does not meet a tax cap until one year after occupancy. These caps help provide stability and predictability for property owners, while limiting the jump in their annual property tax payments.

Tax Collection and Due Dates

Local county treasurers typically collect the property taxes in Nevada. Your property tax bill is mailed only once a year. Homeowners should receive this bill by August 1 each year. The taxes are usually due in four installments throughout the fiscal year, as long as what you owe is above $100:

First Installment: The third Monday in August

Second Installment: The first Monday in October

Third Installment: The first Monday in January

Fourth Installment: The first Monday in March

Payments can be made in full or in installments. After a ten-day grace period, late payments are penalized with increasing percentages. For instance, Carson City charges 4% for the first delinquent payment, 5% for the second, 6% for the third, and 7% for the fourth. All delinquent property taxes then grow in interest at 10% APR every month. 

The property could be deeded to the County Treasurer and put up for sale should the outstanding taxes keep accruing. That’s why making a timely payment is so important.

Exemptions and Abatements

Several tax exemptions and abatements can reduce the amount of Nevada property taxes owed. These include:

Veterans’ Exemption: Available to qualifying veterans and disabled veterans, it exempts up to $34,400 in assessed value. The actual amount depends on the disability and a sliding income scale.

Surviving Spouse Exemption: Available to surviving spouses of veterans for up to $6,880 off assessed value. Again, it varies based on disability levels and income.

Blind Exemption: Legally blind property owners could be exempted up to $5,160.

Property owners must apply with their local assessor’s office to qualify for these exemptions and provide the necessary documentation. The given amounts were for the 23-24 tax year and can change.

Appealing Property Assessments

Property owners have the right to appeal the assessment if they believe their property has been incorrectly assessed. The appeal process involves filing an appeal with the county Board of Equalization (BOE). The board reviews the appeal, and the property owner can present evidence to support their case. This can be independent appraisals or local comparable sales. The board will decide if they will adjust the property value. If unsatisfied, the assessed value may be appealed to the state board of equalization.

Impact of Nevada Property Taxes

Nevada’s property tax system is designed to balance the budgetary needs of local governments while protecting property owners from steep annual increases in property taxes. More questions? Ask the county assessor’s office or a tax professional for specific information and assistance. Pay attention to budget hearings, and this is when any property tax increases will be discussed.

Disclaimer

The information provided in this explainer is for general informational purposes only and is not intended as legal, financial, or tax advice. Property tax regulations can be complex and subject to change. Property owners are encouraged to consult with a qualified tax professional, financial advisor, or legal expert to obtain advice tailored to their specific situation and to ensure compliance with current laws and regulations.