Nevada has a lot going for veterans who want to buy a home: no state income tax, property tax exemptions for veterans, a VA Medical Center in Reno, and a housing market where the VA loan is widely used. But several of these benefits don’t happen automatically. You have to apply, ask the right questions, or structure the purchase with them in mind. Here’s what to know before you start shopping.
No state income tax
Nevada doesn’t tax personal income, which includes military retirement pay and wages from a second career. For retirees coming from states that tax pensions, that can make a real difference in monthly cash flow. Federal taxes still apply, and your overall picture depends on your situation, so confirm the details with a tax professional, especially in the year you move.
Veteran property tax exemptions
Nevada offers two property tax benefits for veterans:
- Veterans’ exemption: for eligible veterans, it reduces the assessed value used to calculate your property tax bill.
- Disabled veteran exemption: a larger exemption for veterans with a service-connected disability rating of 60% or more, scaled by rating.
Exemption amounts adjust every year, and you must apply; they’re not added to your bill automatically. In Reno and Sparks, you apply through the Washoe County Assessor. Outside Washoe County, apply with your county assessor. Nevada also generally caps annual tax increases on an owner-occupied primary residence at 3%.
One practical tip: property taxes affect your monthly payment, and your lender will estimate them when you’re pre-approved. Ask how an exemption you plan to apply for would, or wouldn’t, factor in.
The VA funding fee and disability exemptions
Most VA borrowers pay a one-time funding fee, which can be rolled into the loan. For a purchase, the fee depends on your down payment and whether you’ve used the benefit before:
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% to 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Veterans who receive VA disability compensation are generally exempt from the funding fee. So are veterans with a proposed or memorandum rating issued before closing, eligible surviving spouses, and active-duty Purple Heart recipients. If you have a disability claim pending, tell your lender early; the timing of your rating can matter. Your lender will confirm your exemption status on your Certificate of Eligibility.
Full entitlement and loan limits
Since 2020, veterans with full entitlement have no VA loan limit. You still need to qualify for the payment, but the VA doesn’t cap how much you can borrow with $0 down. If you have entitlement tied up in a current VA loan, the county conforming loan limit is used to figure out how much you can borrow before a down payment comes into play.
That matters for veterans who kept a home from a previous duty station. You may be able to buy in Reno with a second VA loan while keeping the first. The article on using a VA loan more than once explains how entitlement restoration and second-tier entitlement work.
Home Is Possible for Heroes
The Nevada Housing Division’s Home Is Possible programs offer down payment and closing cost assistance through participating lenders, and they can be paired with VA, FHA or conventional loans. “Home Is Possible for Heroes” is aimed at veterans, active-duty service members, first responders and teachers. Income and purchase price limits apply and change over time, so ask a participating lender whether you qualify and how the program would affect your rate and costs.
Living near the VA Medical Center
The Ioannis A. Lougaris VA Medical Center is in Reno, which is a big reason many veterans choose the area. If you’ll have regular appointments, factor drive time into where you buy. Central Reno, South Meadows and parts of Sparks keep that trip short, while Fernley, Fallon and the North Valleys add distance. The Northern Nevada Veterans Memorial Cemetery is in Fernley.
Nevada is a community property state
Nevada is a community property state, which generally means property acquired during a marriage is treated as owned by both spouses. That can affect how you take title, what happens in a divorce or estate situation, and what a lender needs from a non-borrowing spouse. If you’re marrying, divorcing, blending families, or planning your estate, talk with an attorney, tax professional and your title company about how to hold title before closing.
Choosing an agent
A good fit for a veteran buyer should be able to answer these questions clearly:
- How do you write a VA offer that competes with conventional and cash buyers?
- How do you handle seller concessions within the VA 4% limit?
- What happens if the VA appraisal comes in low?
- How do you coordinate the wood-destroying insect inspection required in Washoe County?
- Which areas fit my budget, commute and VA Medical Center access?
Alex brings 9 years of U.S. Air Force service and works with VA buyers throughout Northern Nevada. Learn more about his approach on the Reno realtor for veterans page, or start with the complete guide to buying with a VA loan in Reno.
Alex is a Realtor, not a lender, tax advisor or attorney. Confirm loan terms and funding fee status with a licensed lender, and tax exemptions with the county assessor or a tax professional.
The bottom line
Nevada can be an excellent place for veterans to buy, but the biggest benefits require action: apply for your property tax exemption, confirm your funding fee status, understand your entitlement, and ask about down payment programs before you write an offer. For a closer look at the costs a seller can cover, read VA loan seller concessions explained.