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The Silver State has many appeals for people looking to invest in property- whether for rental purposes, retirement, or a relocation to the never-ending sunshine and glorious mountain surroundings.
You may love the idea of living in an income-tax-free state- but don't forget about property taxes.
Almost everyone who owns any type of property needs to pay property tax in Nevada every year. It is a vital contribution to local services in your district- from schools to road improvements.
Being prepared for property tax is easier if you have some basic understanding of how it all works, and this guide has everything you need to know.
How much are property taxes in Nevada, what factors influence the calculations, when and how are they paid, and is there a way to pay less? Find out all this and more to get ahead of your tax bills for the coming year.
An Overview of the Types of Property Taxes in Nevada
Tax on Nevada properties is fairly simple. All personal property is taxable, including vacant land, rental properties, residential homes, commercial buildings, and mobile homes. If you own real property of any kind, you need to pay tax based on the rate for your district.
Nevada does not use property tax classifications to determine the types of tax, everyone is assessed and taxed using the same formula.
When Is Nevada Property Tax Paid?
The final deadline for property tax payments in Nevada is the third Monday in August. Most counties allow you to pay in installments if your total bill is more than $100.
If you are paying in installments, the payment schedule is as follows:
- First payments must be made by the third Monday in August.
- The second payment is due by the first Monday in October.
- Your third payment should be made by the first Monday in January.
- Final balances must be cleared by the first Monday in March.
What Happens If You Pay Your Property Taxes Late?
Failure to pay your property taxes on time could eventually lead to you losing your home. You have until the first Monday in June to clear your delinquent property tax bill. Otherwise, the County Treasurer can get a certificate that allows them to legally hold the property for two years.
If, after the two years is up, you have still not paid your outstanding taxes, a deed to your property is awarded to the County Treasurer, and they can sell your property to recoup your debt.
Depending on how much you owe, the county could also pursue an action to make the debt a lien on the property and sell it to get the money they are owed. You still have a two-year redemption period to repay your debts (plus interest and charges) before you lose the property.
Delinquent property taxes are charged with 10% interest for every overdue year. Other charges vary between counties and districts.
How Can You Pay Your Nevada Property Tax Bill?
Most Nevada counties have the facility for people to pay their property tax online using a credit or debit card. Alternatively, you can pay in person via your local taxing authority's office or other designated tax collector.
How Much is Nevada Property Tax?
The average property tax rate in Nevada is 0.64% of the total value, although locally, this number varies. Clark County (including Las Vegas) has an effective tax rate of 0.56%, while Lyon is much higher at 0.96%. In contrast, Esmeralda residents only pay 0.24% effective property taxes- one of the lowest rates in the country.
Property taxes in this state are determined based on a property's value and the local rates set by individual tax districts. There are no state-wide property tax rates, but there are some rules that apply to everyone.
Assessed Value
A county-wide property tax assessment should take place at least every five years for Nevada residents who own properties. The assessor's office is responsible for arranging this and ensuring accurate valuations are given.
Assessors should base the market value on the base price the land your property is on would sell for as a vacant lot, then the 'improvements made', or building work, is evaluated. A depreciation rate is applied for every year since construction.
Other factors that go into county assessors' valuations are fair market rents, the estimated replacement cost, and recent sale figures in the area.
Taxable Value
Once an assessed valuation is applied to a property, the taxable value is determined. Across Nevada, there is a consistent rate for taxes calculated as a percentage of the appointed market value.
The rate is 35%, meaning a property with an assessed value of $100,000 would be taxed on 35% of the value ($35,000 in this example).
Local Tax Rates
Next, the rates set by individual tax districts are applied. Each county has a taxing authority responsible for setting property tax rates based on budgetary needs for the year ahead- but they are not allowed to make a significant tax increase from one year to the next.
The tax amount is decided after a budget discussion is made regarding the revenue generation needed for urban development, schools, and other public services.
How Is a Property Tax Bill Calculated for Nevada Owners?
To figure out how much taxes should cost, the above-mentioned factors are used. The initial tax calculation is simple:
- Market value x 35% = Assessed Value (Taxable value)
In Nevada, tax is usually expressed as the dollars per $100 of the assessed value that is taxable (the effective tax percentages are just used to gauge average rates overall).
Say your property is worth $200,000, and your local tax rate is $3.50. The calculation would look like this:
- $200,000 x 35% = $70,000
- $70,000 ÷ 100 = $700
- $700 x 3.5 = $2450
- $2450 is the amount of your tax bill.
How Can Nevada Property Owners Reduce Their Property Taxes?
An exemption is a sort of tax relief package that applies to certain homeowners based on their circumstances. They usually only apply to eligible owner-occupied primary residences. There are several exemptions available for property taxes in Nevada, including the following.
- Veterans exemption
- Disabled veterans exemption
- Blind exemption
- Surviving spouse exemption
Important Laws in Nevada Property Tax
Caps on Property Tax Increases
The tax abatement law in the Nevada legislature caps property tax increases at 3% annually. This means that the annual increase on your total property tax bill in Nevada can be no more than 3%, even if the assessed value of your property increases by more. Calculations are made against the Consumer Price Index for each county.
A county's Assessor's Office is responsible for calculating tax relief if an assessed value has increased beyond the tax cap.
Conclusion
How much tax you need to pay on your property in Nevada depends on the value of your land, the work that has been done on it, and the tax rate in your individual county. Overall, the Silver State is amongst the most affordable tax states for property- thanks, in part, to the tax cap that limits the growth rate and annual increases year-on-year.
You can add low property taxes to the list of reasons to love living or investing in Nevada real estate- but don't forget those all-important payment dates. Keep up to date with the tax cycle in your district and stay ahead of your bills.
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