A Nevada property has a market value of $520,000 and is assessed at 35% of market value. The property tax rate is $3.25 per $100 of assessed value. What is the annual property tax?

Explanation

Assessed value = $520,000 × 35% = $182,000. Annual property tax = ($182,000 ÷ $100) × $3.25 = 1,820 × $3.25 = $5,915. In Nevada, property is assessed at 35% of taxable value for tax purposes. The tax rate is then applied to the assessed value. Nevada caps residential property tax increases at 3% per year for owner-occupied homes (primary residence caps). This calculation method is standard for Nevada property tax problems on the licensing exam.