Reno Mayor's Office Announces Property Tax Relief Plan as Housing Costs Squeeze Middle-Income Households

Reno's city government announced a package of property tax adjustments on Wednesday that will affect how much local residents pay on their homes and rental properties starting in the fiscal year beginning July 1. Mayor Hillary Schieve's office released the plan in response to sustained pressure from residents facing steep property value increases across Washoe County.

The policy changes include a cap on annual assessment increases at 3 percent and an expansion of the existing homeowner exemption from $175,000 to $200,000 of assessed value. Together, these measures will affect roughly 64,000 property owners in Reno proper, according to figures released by the Washoe County Assessor's office.

Reno residents have watched property values climb steadily over the past five years. Median home prices in the city reached $515,000 in the first quarter of 2026, up from $385,000 in 2021. For renters, landlords have passed along rising costs through rent increases averaging 6 to 8 percent annually, city housing advocates have reported. The new tax cap is intended to slow the pace of these downstream effects by reducing one major cost burden on property owners.

What the Changes Mean for Local Households

A resident owning a home assessed at $450,000 would have paid $2,880 in city property tax under the previous formula. Under the new assessment cap, the same property would generate a tax bill of $2,700, a saving of $180 annually. The expanded homeowner exemption adds another $150 in relief for a typical owner-occupied residence in Reno.

For renters, the practical effect depends on landlord behavior. Property managers and small-scale landlords in Reno say they will pass some savings to tenants through slower rent growth, though no mandatory pass-through mechanism exists in the policy. The Reno Housing Authority estimates the tax changes could reduce rental property operating costs by 4 to 5 percent, though the actual effect on rents will become clear over the next 12 months.

The plan exempts agricultural property and active senior housing from the assessment cap, protecting farmland near the city edges and senior communities operated by nonprofits like Senior Services of Washoe County.

Implementation and Next Steps

The Washoe County Assessor's office will begin applying the assessment cap to 2026-27 property tax bills, due in installments starting in August. Homeowners currently claiming the exemption will automatically receive the expanded benefit; those who have not applied must file with the Assessor before October 15 to qualify for the 2026-27 tax year.

City staff projects the changes will reduce property tax revenue to Reno by approximately $8.2 million annually once fully implemented. The mayor's office has not yet disclosed how the city will adjust its operating budget to account for the shortfall. The Reno City Council is scheduled to vote on the budget amendment on July 23.

Property tax analysts note that the 3 percent cap will not apply to assessed values increasing faster than inflation; properties with assessment gains above 3 percent will see the capped amount apply going forward. A home reassessed from $400,000 to $430,000 in one year would have the $30,000 increase capped at $12,000 for tax purposes, reducing the owner's tax liability growth from $192 to $77.