| The taxable value of agricultural land in Nebraska rose 11.2 percent during the past year according to the Nebraska Department of Revenue. This follows a 6.3 percent rise in 2023 and marks the fourth consecutive year taxable values of agricultural land have risen (Figure 1). Residential property, including new growth, rose 9.2 percent. Commercial property saw a 7.7 percent increase. Total real property value grew 9.6 percent. |
FIGURE 1. ANNUAL PERCENTAGE CHANGE IN TAXABLE VALUE OF AG LAND Source: Nebraska Department of RevenueFigure 2 maps the year-over-year changes in taxable value of agricultural land in counties. Knox and Pierce Counties saw the greatest gains, with increases of just over 25 percent. Hamilton County (+24 percent) and Dakota County (+21 percent) followed. Four counties—Blaine, Box Butte, Cass, and Cheyenne—saw slight reductions of less than one percent. The value increases on agricultural land are not surprising. This year’s values are based on land sales occurring between October 1, 2020, and September 30, 2023. Figures from the USDA Economic Research Service show the average per acre value of land rose 11 percent in 2021, 21 percent in 2022, and 13 percent in 2023. And 2025 will bring more of the same. The annual farm real estate report from the Department of Agricultural Economics at the University of Nebraska-Lincoln indicated land values were up 14 percent this year. So expect another double-digit increase next year. FIGURE 2. PERCENTAGE CHANGE IN TAXABLE VALUE OF AGRICULTURAL LAND, 2024  Source: Nebraska Department of Revenue, Property Tax Assessment |
| Figure 3 maps the year-over-year changes in taxable value of residential property in counties. The largest increases are in Hooker (+45 percent), Cherry (+32 percent), and Johnson Counties (+34 percent). Existing residences in these counties took the brunt of the value increase as new growth contributed little to the value growth. Clay (+3 percent), Sioux (+3 percent), and Lancaster Counties (+4 percent) had the lowest increases. |
| FIGURE 3. PERCENTAGE CHANGE IN TAXABLE VALUE OF RESIDENTIAL PROPERTY, 2024 |
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| Source: Nebraska Department of Revenue, Property Tax Assessment |
| Historically, a strong correlation exists between changes in taxable values and changes in property taxes. Since 1993, the growth in taxable value on agricultural land averaged 6.5 percent and the growth in taxes averaged 4.7 percent. The correlation coefficient between changes in values on agricultural land and changes in taxes over the period is .82, signaling a strong, positive relationship between the two. The conclusion—the increase in taxable values will likely result in higher property taxes. |
