For over 20 years, I have observed the Reno real estate market, and few questions come in as consistently as inquiries about property taxes. Many people wonder if taxes increase as home prices rise.

Nevada, including Washoe County where Reno is located, has a relatively low effective tax rate. The effective property tax rate in Washoe County is about 0.64%, which is less than half of what it is in nearby California's Tahoe area.

Calculating the median home price in Reno at about $490,000, the annual property tax comes to around $3,100. However, thanks to Nevada's property value increase cap, even in years of rapid price increases, the tax hikes have been limited, as observed over the past few years.

Home insurance premiums need to account for wildfire risks. Reno is adjacent to the Sierra Nevada mountains, and during the summer wildfire season, insurers often reassess risks, leading to premiums being set higher, around $1,700, compared to other low-risk areas.

Here's a summary of the annual ownership costs for a median home in Reno:

• Property Tax: approximately $3,100
• Home Insurance: approximately $1,700
• Maintenance Costs: approximately $7,350
• Total Annual Costs: approximately $12,150

Even within Washoe County, areas like Sparks or nearby foothills have seen significant differences in insurance premiums based on wildfire risk. Checking the wildfire risk rating for a property before buying can be practically helpful.

Nevada has a separate exemption program for residents aged 65 and older, veterans, and individuals with disabilities, which can be applied for through the Washoe County Assessor's office.

From my long-term perspective in this market, while Reno has a relatively low property tax burden, insurance and maintenance costs play a significant role. Planning for total ownership costs around $12,000 annually would be a realistic approach.