Living in Northern Nevada, Reno residents enjoy an excellent array of public services that local tax dollars go to pay. Nevada residents however, enjoy one of the lowest tax burdens in the country. As such, the cities and towns of the Silver State are attractive destination points for savvy tax payers who want to get the most out of their paychecks while limiting their tax burden to those living on a fixed income and need to control their spending when possible. For homebuyers thinking of purchasing in the Reno, Nevada real estate market, the lower tax burden the town assesses
The Low Cost of Living in Reno, Nevada
Nevada residents pay no state or local income tax, so taxpayers living in the Silver State are already ahead of the game when it comes to lowering their tax burden. For denizens of Reno, these savings make for a substantial reduction in the cost of living, which makes the town one of the most cost-effective locations to live in the nation. As compared to other major cities around the country, Reno property tax rates are some of the lowest in the United States at an effective rate of about a dollar per $100 of assessed value. While supporting an especially high sales tax rate of 7.75%, much of that bite is ameliorated by the fact that Nevada only taxes 37.4% of its goods at sale. Further savings are found in a state tax code that allows for the deductions of state and local sales tax payments.
Lower Rates Means Real Savings
Much of the state’s general fund is supported by taxing the gaming industry in tandem with hotel occupancy taxes, so the overall burden is diffused away from residents of the Silver State to those more easily able to pay. In terms of real savings, a family of three earning $25,000 will save $266 a year in tax burdens over the average American city dweller, and a family of four bringing in $150,000 can expect to bank over $6,300 in savings, which makes Reno the third lowest in the nation for tax payments.
The larger the town the higher the property taxes, so in an effort to compare apples with apples, contrast Reno’s 220,000 populations against cities of similar sizes yields the following comparisons.
City Population Tax Rate
Winston-Salem, NC 239,269 $.07310 per $100 of Assessed Value
Glendale, AZ 237,517 $1.68 per $100 of Assessed Value
Garland, TX $.7046 per $100 of Assessed Value
Richmond, VA $1.38 per $100 of Assessed Value
Boise, ID $1.21 per $100 of Assessed Value
Calculating Reno Property Taxes
Under current Nevada statutes, the Assessor is mandated to discover and list the value of all real property in the county, which is assessed at 35% of its currently appraised value. Once the Assessor office has completed its computations, it then turns the data over to the County Treasurer who determines the actual tax debt owed by the property owner. The Treasurer not only sends out tax bills and collects the receipts, but that office is also responsible for seeing to the disbursement of these funds to all relevant taxing agencies from school districts to water districts throughout Washoe County. With an effective Reno property tax rate of 3.4959%, Reno residents pay slightly higher rates than their southern neighbors in Clark County enjoy. As an example, a home valued at $200,000 would be assessed at 35% of that value, or $70,000, and the property owner is charged for each $100 of value. Under the above guidelines, the homeowner can expect to shell out between $2,447 per year in Reno property tax. Again, while this is a higher dollar value than would otherwise be paid by Las Vegas residents, Washoe County and Reno property tax rates are still some of the lowest in the country.
Crumbling Schools Could Lead to Boosted Reno Property Taxes
For property owners looking to the future of their Reno property taxes, their eyes are being drawn to the legislative chambers of Carson City where the state senate has put forth a bill, SB411, which seeks to revitalize the state’s education infrastructure. While much of the state’s physical educational facilities are in dire need of repair work and improvement projects, the state is also inundated with increased student enrollment that is forcing educators to rethink ways to maximize existing class space and the building of new schools. The new senate bill seeks to raise property rates to help pay for the new building and construction projects. While legislative analysts are closely following the bill’s progress, its passage in the state senate could potentially boost the cost of owning property not only in Reno, but also across the Silver State as a whole.
Affordable Reno Property Tax Rates
Homebuyers looking to relocate to the Silver State are rewarded with a cost of living index that is decidedly lower than cities of similar size across the country. Owing to Nevada’s unique taxing position of not demanding personal income tax of its citizens, Reno residents enjoy an enhanced quality of living because they get to keep more of their hard-earned money in their own pockets rather than a governmental office. With plenty of available houses on the market, low Reno property tax rates translates into buying the home of their dreams while easily affording the ongoing costs of property tax rates.
2 Point Highlight
Living in Northern Nevada, Reno residents enjoy an excellent array of public services that local tax dollars go to pay.
Homebuyers looking to relocate to the Silver State are rewarded with a cost of living index that is decidedly lower than cities of similar size across the country.
