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Reno Real Estate Taxes


One of the biggest questions I get when selling real estate is, "Will my property taxes go up when I buy a home". The answer is "No". We are not a prop 13 or market value state like California which puts your tax at 1% of the sales price and stays there until you sell the property.

If you bought your property 30 years ago and paid $100,000 your annual taxes are still $1000 per year, where as your neighbor who just paid $700,000 for the house next door is paying $7000 annually for his taxes.  Doesn’t seem fair. The good news is Nevada does not operate this way.

The way the Washoe County tax assessor taxes real property owners can be a little confusing but I am going to give it a shot.

The formula that they use is this:

Taxable value = market value of land + depreciated replacement cost new of improvements.

Assessed value = 35% of taxable value

Your tax bill is determined by multiplying the tax rate (approximately .036%) times the assessed value.


Property tax cap

During the 2005 session the legislature passed a property tax cap of 3%. For example, if your property value was to go up by 30%, your tax bill could only go up by 3% a year. Below is an example of how the tax cap looks compared if we did not have a cap.  Under state law property value that has not been taxed (abated taxes, see chart) can be used in times that the property taxes fall under the caps. Because of the housing collapse, the Washoe County Assessor last fall reduced property values by 11% and earlier this month reduced land values by 15%.

I went to a seminar by  Josh Wilson, the Washoe County Tax Assessor, about a month ago, and based on the number of foreclosures still to come they will have to reduce the assessed values even more.

Stay tuned as this will be a subject very near and dear to all our wallets and is sure to change over the next 12 months.

For more information go to the Washoe county assessor website at

David Hughes



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