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Ranging errors are inevitable in all local positioning systems, including those based on Time-of-Flight (ToF) technique. Results of experiments show that the major cause for these errors is a signal degradation from multipath propagation. This effect is especially critical in case of Non-Light-of-Sight (NLOS) conditions. This paper describes causes that affects ranging errors for nanoLOC™-TOF-technology and presents estimations for the probability density functions of such errors under different NLOS conditions. The provided estimations allow the improvement of the accuracy of the localization through the subsequent mitigation of the ranging errors from the measurements. Additionally, it is proposed to increase the number of cases of NLOS-conditions for the improvement of the accuracy.