A state’s property taxes can be a significant determinant in making the decision to purchase a home, along with state income tax levels and home values. In Nevada, homeowners find property tax rates ranging at midlevel compared to national averages. This guide for state property taxes in Nevada can help you gain better insight into the statewide property tax structure, and provide resources to help you better plan for your annual tax obligations.

Paying Your Nevada Property Taxes

Property tax bills are delivered annually to property owners. In Nevada, property taxes are calculated with the following equation:

Taxable Value x Assessment Value x Tax Rate = Effective Property Tax

The taxable value of a property in Nevada is determined annually by a government tax assessor. The taxable value is based on the property’s land and home value. An assessment value is then used to determine the value that qualifies for tax payment. The assessment value is determined by the tax district within each county and is around 35%, which means only 35% of the full value is taxable. The tax rate is also determined by tax district and is expressed as a dollar value per each hundred dollars assessed. For example, if your tax rate is 3.00 and your assessed value is $40,000, then your effective property tax is $1,200. In Nevada, tax rates range from approximately 1.7790 to 3.6600.

Average Property Taxes

The Tax Foundation reports that Nevada's 2015 average effective tax rate as a portion of home value was 0.86%, which ranked 30th among all states in the United States. With property tax rates ranging from 1.7790 to 3.6600, White Pine reports the highest county property tax rate and Eureka has the lowest county property tax rate. Cities paying some of the highest tax rates in the state include Ely, Ruth and Lund in White Pine County. Cities paying some of the lowest tax rates in the state include Eureka and Crescent Valley in Eureka County.

For property owners in Nevada interested in gaining a better understanding of their current effective property tax rates in order to plan for annual tax obligations, SmartAsset.com can be a valuable resource. SmartAsset.com provides visitors with an estimate of their annual property tax bill by using each state’s most current information. It also provides a profile of each state’s property tax metrics. According to SmartAsset.com, the average property tax rate in the state is 0.96%, and property tax rates range from 0.47 to 1.09%. The average median home value is $148,671, and the average median annual property tax payment is $1,167.

How Nevada’s Property Tax Compares to its Neighboring States

Nevada has five neighboring states: California, Oregon, Idaho, Utah and Arizona. According to the Tax Foundation, Nevada ranked 30th in the United States in average effective tax rates. In the western region of the United States, Nevada’s effective tax rate is mostly comparable to its neighboring states; however, Oregon reports a significantly higher effective property tax rate within the region. Oregon ranks 24th in average effective property tax rates with a rate of 1.09%. Other rankings within the region range from 30th to 41st. Idaho has an average effective tax rate of 0.75%, ranking 39th. Utah has an average effective tax rate of 0.68%, ranking 41st. Arizona has an average effective tax rate of 0.80%, ranking 36th, and California has an average effective tax rate of 0.81%, ranking 34th.

How Nevada’s Property Tax Compares to the National Average

WalletHub’s 2016 Tax Study provides detail on national property tax information. The report shows the national average tax rate at 1.13%, which is significantly higher than the tax rate reported for Nevada at 0.92%. The state with the highest effective property tax rate is New Jersey at 2.29%, and the state with the lowest effective property tax rate is Hawaii at 0.28%.

Overall, Nevada and the western region fall in the low- to midlevel rankings for effective property tax rates in the United States, with median home values in the region also in the midlevel range for homeowners. Therefore, citizens of the state can likely expect an average cost of living at the midrange of national levels across the country.

New Mexico Property Tax Guide

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