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Updated 2025 Tax Year

Custer County
Property Tax Guide

Everything you need to know about property taxes in Custer County, NE. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
1.1540% average county-wide (varies significantly by taxing district combinations)
Exemptions
4+ Available
Section 1

How Property Tax Works

Custer County, Nebraska operates on a property tax system that serves as the primary funding mechanism for essential local services including public schools, county government operations, emergency services, and infrastructure maintenance. Property owners in Custer County face an average tax rate of 1.1540% for the 2025 tax year, though this represents a county-wide average and actual rates vary significantly based on your specific location within the county.

The variation in tax rates across Custer County occurs because properties may fall within different combinations of special taxing districts, including school districts, natural resource districts, educational service units, and municipal boundaries. These overlapping jurisdictions each levy their own taxes to fund specific services, meaning two similar properties in different areas of the county can have substantially different tax bills. Property taxes are assessed annually based on actual value as determined by the County Assessor, with various tax credits available to qualifying property owners who submit proper applications.

Section 2

What Makes Up Your Tax Bill

ComponentRate RangeDescription
County General0.15-0.25%Basic county services, roads, courthouse operations
School Districts0.60-0.85%K-12 education funding, varies by school district
Educational Service Unit0.02-0.04%Regional educational support services
Natural Resources District0.03-0.06%Water management, conservation programs
Municipal Levies0.20-0.40%City services (applies only within city limits)
Community College0.08-0.12%Mid-Plains Community College support
Total Average Rate1.1540%FY 2025 county-wide average

Note: These rates apply to the 2025 levy year. Your actual tax rate depends on which special taxing districts your property falls within. Properties outside city limits will not pay municipal levies, while rural properties may have different school district rates.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Custer County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Custer County are additional property tax bills issued when there are mid-year changes to property ownership or improvements that increase assessed value. Common triggers include new construction completion, property transfers that prompt reassessment, or the addition of structures like garages, decks, or agricultural buildings after the January 1st assessment date.

When supplemental taxes are levied, they are calculated by applying the current tax rate to the increase in assessed value, prorated for the remaining months in the tax year. For example, if you complete a $50,000 home addition in July, and your property tax rate is 1.20%, the supplemental tax would be approximately $600 multiplied by 6/12 months, resulting in a $300 supplemental bill. These supplemental bills are typically mailed within 30-60 days of the assessment change and have separate due dates from your regular property tax installments.

Example Calculation

Example 1: $300,000 Home (First-time homeowner, no credits)

  • Market Value: $300,000
  • Assessed Value: $300,000 (100% of market value)
  • Tax Credits Applied: $0 (no applications filed)
  • Net Taxable Value: $300,000
  • Tax Rate: 1.1540%
  • Annual Tax: $3,462
  • Monthly Escrow: $288

Example 2: $600,000 Home (Senior with Homestead Credit)

  • Market Value: $600,000
  • Assessed Value: $600,000
  • Homestead Credit Applied: Assessment increase limited to 10% annually*
  • Net Taxable Value: ~$580,000 (varies by qualification)
  • Tax Rate: 1.1540%
  • Annual Tax: $6,693
  • Monthly Escrow: $558

Example 3: $1,000,000 Property (Agricultural exemption on qualifying land)

  • Market Value: $1,000,000
  • Assessed Value: $850,000 (with agricultural land assessment)*
  • Tax Credits Applied: Must file annually for agricultural classification
  • Net Taxable Value: $850,000
  • Tax Rate: 1.1540%
  • Annual Tax: $9,809
  • Monthly Escrow: $817

*All credits and exemptions require annual application and qualification verification.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Custer County require property tax escrow accounts to ensure timely tax payments and protect their mortgage interests. Your lender collects monthly escrow payments along with your mortgage payment, typically 1/12th of your annual property tax bill plus a small cushion for potential increases. The escrow account holds these funds until tax payments are due on April 15th and September 15th each year.

Lenders are required to provide annual escrow account statements showing all deposits, payments, and account balances. If your actual tax bill differs significantly from the escrow projections, your lender will adjust your monthly escrow payment accordingly and may require a lump sum payment or provide a refund. Property owners can verify their tax information directly with the Custer County Treasurer's office at (308) 872-5701 to ensure escrow calculations are accurate. Once your mortgage is paid off, you become responsible for making direct tax payments to the county and should budget accordingly for the April and September due dates.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Custer County for 2025? A: Property taxes are due in two installments: April 15, 2025 for the first half and September 15, 2025 for the second half. Late payments incur penalties and interest charges.

Q: What homestead tax credits are available and how do I apply? A: Homestead credits are available for property owners over age 65, certain disabled individuals, and qualifying disabled veterans and their surviving spouses. These credits limit annual assessment increases rather than reducing your home's value. You must apply between April 1st and June 30th each year with the County Assessor's office.

Q: Are tax credits automatic or do I need to apply? A: Most tax credits in Custer County require annual application and are NOT automatic. This includes homestead credits, agricultural exemptions, and veteran exemptions. Contact the County Assessor at (308) 872-5622 for specific application requirements.

Q: How often are properties reassessed in Custer County? A: Nebraska law requires properties to be assessed annually, though physical inspections may occur less frequently. The County Assessor reviews market data and property characteristics each year to determine assessed values as of January 1st.

Q: What if I disagree with my property assessment? A: You can protest your assessment by filing a written protest with the County Board of Equalization between April 1st and May 1st. Include comparable sales data and documentation supporting your position.

Q: What are the penalties for late property tax payments? A: Late payments incur penalties and interest charges that accrue monthly. Contact the County Treasurer's office immediately if you cannot make payments by the due dates to discuss payment arrangements.

Q: Can I pay property taxes online in Custer County? A: Contact the Custer County Treasurer's office at (308) 872-5701 for current online payment options and accepted payment methods. Office hours are 9:00 AM - 5:00 PM on weekdays.

Q: How do special taxing districts affect my tax bill? A: Your location determines which school district, fire district, and other special districts serve your property. Each district levies its own tax rate, so similar properties in different areas can have substantially different tax bills even within Custer County.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Tax Doc
2025 Certificate of Taxes Levied Reports (CTL) as of ...revenue.nebraska.gov
02
Comparison 2024 vs. 2025 %Change Property Value, ...revenue.nebraska.gov
03
2024revenue.nebraska.gov
04
Personal Propertycustercountyne.gov
05
Permissive Exemptionscustercountyne.gov
06
Tax Doc
Basics of Nebraska's Property Tax (2020 Edition)govdocs.nebraska.gov
07
Homestead Exemptionscustercountyne.gov
08
Office Servicescustercountyne.gov
09
Nebraska Homestead Exemptionrevenue.nebraska.gov
10
County
Custer County Treasurercustercountyne.gov
All sources verified as of 2025 Tax Year

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