What the hell am I buying...Buckingham Palace

YES THIS IS GOING TO BE A LONG READ

If you’ve ever looked at the payment on an Omaha Douglas or Sarpy County in particular  house and thought:

“Wait. What the hell happened?”

There is a decent chance the answer was Nebraska property taxes.

And this week’s graphic pretty much nails real estate:

The seller sees a showstopper.
The buyer sees a nice house.
The appraiser sees comps.
The inspector sees 37 things to discuss.
And the tax assessor apparently sees Buckingham Palace.

I reaelly am not kidding.

So Why ARE Nebraska Property Taxes So High?

Here’s the easiest way to understand it:

Nebraska relies heavily on property taxes to pay for local government — especially public schools.

Nebraska itself does not levy a state property tax. In fact, the state has been prohibited from doing so since 1966. Your property-tax bill is created by the local taxing entities where the property sits.

That can include your:

School district • County • City • Community college • Natural resources district • Other local districts

And the big one?

Schools.

According to a 2025 Nebraska Legislature report, school districts accounted for 58.2% of all property taxes levied by Nebraska local governments in 2023. Counties were another 16.3%, with cities and villages at 11.1%.

Suddenly that tax bill makes a little more sense or does it. With this much money going toward schools .

And What Exactly Does the Assessor Do?

Here is an important distinction:

Your county assessor determines the taxable value of the property. The assessor does NOT set the tax rate.

Your tax bill is basically your taxable value multiplied by the combined tax rates of the local taxing districts your property falls into.

Most Nebraska residential real estate is assessed at 100% of actual or market value.

So when home values climb rapidly, assessed values can climb too. That is why opening an assessment notice sometimes feels like discovering your perfectly normal ranch has quietly become a French château.

Nebraska Has Been Trying to Give Property Owners Some Relief

There have been significant changes in the last couple of years.

Nebraska now provides a School District Property Tax Relief Credit directly on property-tax statements, rather than making homeowners claim that school credit later on their income-tax return. For tax year 2026, state law calls for at least $808 million in school district property-tax relief statewide.

Nebraska has also put new limits on how quickly property-tax requests from counties, cities and villages can grow, generally tying allowable increases to growth and inflation while allowing certain exceptions.

What Buyers Need to Look At

This is why I never want a buyer choosing a home based solely on the purchase price.

Two houses priced at $350,000 can produce two very different monthly payments depending on the property taxes, tax district, HOA, insurance and — in some newer Omaha-area developments — additional district levies.

The number that matters is the whole monthly number.

Before we fall madly in love with the kitchen, I want to know: What does this house actually cost you every month? Because quartz countertops are gorgeous...but the taxes....

Angela Peters | The Home Girl
Omaha, Nebraska Real Estate