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Updated 2025 Tax Year

Dakota County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
1.3259% countywide average for 2025 (varies by location due to different taxing districts)
Exemptions
4+ Available
Section 1

How Property Tax Works

Dakota County, Nebraska operates under a property tax system that funds essential local services including schools, county government operations, emergency services, and infrastructure maintenance. Property taxes are assessed annually based on actual value as determined by the County Assessor, with the current effective tax rate of 1.3259% for fiscal year 2025. This rate represents the countywide average, but actual tax rates vary significantly by location within Dakota County due to different combinations of special taxing districts, school districts, and municipal boundaries.

The county's property tax base consists primarily of residential properties (67.53% of parcels), followed by agricultural land (23.03%), and commercial properties (9.01%). Property owners receive tax bills twice yearly with payments due in May and October. Unlike some states, Nebraska does not have a statewide assessment cap, allowing local jurisdictions to adjust levies based on budget needs and property valuation changes.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General0.2845%Basic county services, roads, administration
School District0.7890%K-12 education funding (varies by district)
ESU/Community College0.0824%Educational service units and community college
Municipal0.1200%City/village services (varies by municipality)
Special Districts0.0500%Fire, NRD, cemetery, library districts
Total Average1.3259%Combined rate for FY 2025

Note: These rates apply to fiscal year 2025 and represent county averages. Actual rates vary significantly by location within Dakota County based on your specific taxing districts. Rural areas typically have lower municipal rates but may have higher agricultural-related district assessments, while incorporated areas have additional city/village levies.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Dakota 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 Dakota County are triggered by changes in property ownership, new construction, or significant improvements that increase assessed value during the tax year. When these events occur after the annual assessment date (January 1), a supplemental assessment calculates the additional tax owed for the remainder of the fiscal year. The supplemental tax equals the difference between the new assessed value and the original assessment, multiplied by the applicable tax rate, then prorated for the months remaining in the tax year.

For example, if you complete a $50,000 home addition in August, and your total tax rate is 1.3259%, the supplemental tax would be approximately $331 ($50,000 × 1.3259% × 5/12 months remaining). Supplemental tax bills are issued separately from regular property tax bills and typically have a 30-day payment deadline from the date of issuance.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Homestead Credit Applied: -$45,000 (if qualified and applied)
  • Net Taxable Value: $255,000
  • Annual Tax: $255,000 × 1.3259% = $3,381
  • Monthly Escrow: $282

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Homestead Credit Applied: -$45,000 (if qualified and applied)
  • Net Taxable Value: $555,000
  • Annual Tax: $555,000 × 1.3259% = $7,359
  • Monthly Escrow: $613

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Homestead Credit Applied: -$45,000 (if qualified and applied)
  • Net Taxable Value: $955,000
  • Annual Tax: $955,000 × 1.3259% = $12,662
  • Monthly Escrow: $1,055

Note: Homestead credit amounts are estimates and require annual application. Actual tax rates may vary based on your specific taxing districts within Dakota County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Dakota County require property tax escrow accounts to ensure timely tax payments. Your lender collects monthly escrow payments equal to your estimated annual property taxes divided by 12, plus a cushion typically equal to two months of payments. These funds are held in a separate account and used to pay your property tax bills when they become due in May and October.

Lenders are required to provide annual escrow statements showing account activity and any surplus or shortage adjustments. If your property taxes increase due to reassessment or rate changes, your monthly escrow payment will be adjusted accordingly. You can verify that your lender has paid your taxes by checking with the Dakota County Treasurer's office or accessing online payment records. Property owners with escrow accounts should still review their tax bills for accuracy even though the lender handles payment.

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 Dakota County for fiscal year 2025? A: Property taxes are due in two installments - the first payment in May 2025 and the second payment in October 2025. If the due date falls on a weekend or holiday, the deadline extends to the next business day.

Q: What tax credits are available and do they require application? A: The primary tax credit is the Nebraska Homestead Exemption, which requires annual application using Form 458. This credit must be filed with the County Assessor between February 1 and June 30, 2025. Additional credits may be available for disabled veterans, elderly, and disabled persons - all requiring separate applications.

Q: How does the Homestead credit work? A: The Homestead credit limits annual assessment increases rather than reducing market value. It caps assessment growth and provides tax relief based on income qualifications. This is a tax credit that reduces your tax bill, not an exemption that reduces assessed value, and requires annual application.

Q: How often are properties reassessed? A: Nebraska law requires properties to be assessed annually at actual value as of January 1. The County Assessor reviews market data, sales comparisons, and property characteristics to determine current valuations each year.

Q: What are the penalties for late property tax payments? A: Late payments incur interest charges and penalties. Contact the Dakota County Treasurer's office for current penalty rates and specific consequences of delinquent payments.

Q: Can I pay property taxes online? A: Yes, Dakota County offers online payment options. Check the Dakota County Treasurer's website for available electronic payment methods, service fees, and payment processing deadlines.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the County Board of Equalization by June 30 following the assessment year. You'll need comparable property data and evidence supporting your claim that the assessed value exceeds actual market value.

Q: Why do tax rates vary within Dakota County? A: Tax rates vary because different areas are served by different combinations of school districts, municipalities, fire districts, and other special taxing districts. Rural areas typically have different service districts than incorporated cities and villages, resulting in varying total tax rates across the county.

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