What is property tax, and why do you need to deal with it? Although it may not be the top priority on your list when it comes to selling a house in Nebraska, property tax is one of the biggest elements to keep in mind when it comes to personal property, staying above board, buying or selling a house in Nebraska.
Property tax is a tax owed to the local government based on ownership of a current property.
You must pay property tax to the Nebraska Department of Revenue if you own a house or a corporation that owns a school within the school district. This regressive tax is based on a local government. It is calculated using the determined value of the property, such as the age of the building, amount of land, vehicles, tangible property, etc.
Calculating your Nebraska property tax is key to figuring out how much you owe, where you want to move, and how to avoid any issues in the future.
How Nebraska Property Tax works
So you know the basics of Nebraska property tax — but how does it work? Knowing the ins and outs of property tax can help homeowners, and future home buyers in the state of Nebraska understand how much they need to pay when they need to pay, and what they are paying for.
Property tax can be confusing. The local government is in charge of figuring out how much you owe and then distributing these collected funds to law enforcement, the local fire department, road repairs, construction, public works, and other services.
But how do taxpayers calculate the amount of tax they owe, and how do they pay it to the right people? Using online tax calculators or attempting to calculate the math on your own can be confusing. Fortunately for you, we will give you a detailed answer.
The amount of money you owe to the local government in Nebraska is determined by the tax rate and the property’s market value (valuation). Most local governments and authorities will re-determine your property tax every 1-2 years, ensuring you are not overpaying or overpaying on the value of your house or building.
Therefore, the government legislature calculates and changes the property tax rates. Sometimes, a professional, like a county assessor or treasurer, will value your property. In other instances, someone who works in the local government may take on this role.
After the assessor determines the property’s value, they will tell you how much you owe and when to pay the Nebraska tax. The schedule of the property tax payment depends on the area in which you live. All areas within Nebraska are governed by the local tax codes set forth by the assessor, which is a fundamental factor in finding new homes or selling houses in Nebraska.
In short, all states have different definitions when it comes to what adds assessed value to your house and what is not considered real property.
So, what is considered ‘taxable’ in the state of Nebraska? Do you have any tax exemptions?
In the state of Nebraska, all property is subject to being taxed. The only exception to this rule is any item or value listed in the Nebraska Constitution. Using a lawyer or attorney can help you figure out what is considered ‘taxable’ for the home in a specific geographical area in Nebraska.
“Taxable property” is a tangible property with a value greater than zero. Within the state of Nebraska, all items, except cars and rental equipment, are considered to have a value greater than zero.
Suppose you have depreciated property, such as personal items, that have a low lifespan. In that case, this will not increase your property taxes.
In most cases, the following circumstances require an owner to pay fees on taxable property within the state of Nebraska:
- Anyone who owns tangible personal property
- Anyone who leases property to/from another person or business
- Anyone who brings property into the county
Looking to sell your house fast and move to a cheaper spot in Nebraska? We don’t blame you! We buy houses Omaha residents want to sell quickly and can help you get a better annual property tax on your house. Use our reputable professionals to save thousands on your personal property tax return!
Nebraska Property Tax rates
How much do you owe on your Nebraska property taxes? Residents and future homeowners may be disappointed to find out that Nebraska is within the top 10 highest-ranking countries in terms of property tax payments.
Furthermore, Nebraska ranks at the very top in terms of the amount of property tax amounts paid — compared to neighboring states and the entire United States as a whole, this is extremely high.
Nebraska sales taxes are one of the lowest in the entire nation. Homeowners pay over 45% in property taxes to the state, whereas commercial industries pay less than 20%, which can help mitigate the high property taxes when it comes to residents moving to new areas in the states.
Due to the high property taxes, the citizens have proposed budget cuts and lower tax rates. An agricultural tax crisis soon led to tax relief referendums set forth, trying to pass a property tax bill that reduces property taxes by 30%.
However, this 2018 campaign fell flat due to the initial amount of spending and the proposed larger individual income tax increases. Therefore, the referendum did not pass, and Nebraska’s property taxes stayed among the highest in the country.
The best thing to do for homeowners in 2022 is to look at the current market statistics. View the Lincoln Housing Market Statistics to Know Before You Move and the average property tax rates to see the best area for relocation within the state of Nebraska.
Today, Nebraska’s median property tax rate comes to just over $2,100 per year, with a median home value averaging around $123K for a family-sized home within the state. The varying counties within the state make up just over 1.75% of the property’s market value.
Furthermore, the median income of most households in the state is less than $60K per year — this means that the median property tax credit owed by citizens comes to a large percentage of their salary per year.
However, for those who are calculating their tax rate or considering moving to Nebraska, you may be pleased to hear that the exact amount depends on the specific county.
For example, Grant County has a low property tax collection of 1.95% of the home value. If you are trying to save money, avoid moving to high-collection areas, like Sarpy County, and stay in areas with a collection rate below 2%. Look into the Cedar Bluffs, Nebraska sales tax rate and other local areas, like Douglas County, to see how much you might have to pay.
If you want lower property tax rates, find out how to sell a house fast in Lincoln and move somewhere less expensive so you can save your hard-earned money!
Calculate your property tax rate
If you are considering moving to Nebraska, you need to determine how much you will pay on your property taxes, which can help future home buyers and renters budget their money moving forward.
One of the easiest ways to estimate your property taxes is to use average count rates and values. For example, the average tax rate in Nebraska is 1.23%, coming out to a property tax value of just over $3,075 per year.
You can also guess your property taxes by assessing the value of your home. For example, if your house is appraised with a value of around $250K, and you live in an area with an average collection rate of 1.23%, then your property taxes will come to $3,075. However, if you live in a higher area with a 1.68% value, your property taxes will look closer to $4,200.
If your property tax sounds high, you might want to relocate. Find out how to sell your house for a fraction of the cost in Lincoln to get a better deal on your annual taxes.
Conclusion
Avoid your house sitting on the market for days or weeks on end — the last thing you want is a non-mobile listing on real estate pages. Instead, find out what a stagnant listing really costs you in Lincoln and look into the best areas to buy a house for lower property taxes.
After all, property taxes are key determinants in where someone may move or buy a house. Unfortunately, this adds up to thousands per year, and the evaluation and analysis process can be draining on homeowners.
Instead of being confused and overpaying, find the Nebraska property assessment FAQs to do the work yourself. Not only can you save more money on your tax return, but you may even qualify for property tax relief. Doing the research beforehand can save you thousands of dollars in the long run!