Nevada State Income Tax Overview

Nevada is one of a small number of states that does not impose a personal income tax on residents. If you live or work in Nevada, you do not file a Nevada state income tax return, and there is no Nevada equivalent to a Form 1040.

That said, no state income tax does not mean no taxes. Nevada funds state and local government through other taxes, including sales taxes, property taxes, and business taxes. Understanding how Nevada collects revenue, and how that compares to other states, is important whether you are moving to Nevada, already living in the state, or considering relocating elsewhere.

This page explains how Nevada's tax system works, what taxes residents do and do not pay, and how Nevada compares to other states from a tax perspective.

Does Nevada Have a State Income Tax?

No. Nevada does not have a state-level personal income tax.

Residents of Nevada do not pay state income tax on wages, salaries, self-employment income, retirement income, or investment income. There is also no Nevada state income tax return to file and no state income tax withholding taken from paychecks.

This is not a temporary policy or a tax credit that can change year to year. Nevada's lack of a personal income tax is written into the state constitution, which prohibits a tax on the wages or personal income of natural persons. As a result, Nevada has remained a no-income-tax state for decades.

It is important to note that this applies only to state income taxes. Nevada residents are still required to file and pay federal income taxes with the IRS, just like residents of every other state.

How Nevada Raises Revenue

Nevada's lack of a personal income tax does not mean the state operates without revenue. Instead of taxing wages and salaries, Nevada relies more heavily on consumption-based taxes, property taxes, and business taxes to fund state and local government.

Understanding this trade-off is important, especially for people moving to Nevada from high–income-tax states.

Sales and Use Taxes

Nevada's primary revenue source is its sales and use tax.

• Nevada has a statewide sales tax structure, and total sales tax rates can vary by location.
• Local jurisdictions can add additional taxes, which can make the total rate higher in some areas.
• Sales tax applies broadly, meaning residents tend to pay more tax when they spend, rather than when they earn.

For households that spend a large portion of their income, this can offset some of the benefits of having no income tax.

Property Taxes

Property taxes in Nevada are imposed at the local level, not by the state directly.

• Rates vary by county and municipality.
• Property taxes can be a larger ongoing cost for homeowners than people expect when comparing Nevada to income-tax states.
• Local property taxes help fund community services such as schools, public safety, and local infrastructure.

For homeowners, especially retirees and long-term residents, property tax planning matters.

Corporate and Business Taxes

While individuals are not subject to state income tax, Nevada does collect revenue from businesses.

• Nevada does not have a traditional corporate income tax, but it does impose other business taxes.
• Nevada's Commerce Tax applies to certain businesses with Nevada gross revenue above a threshold.
• Nevada's Modified Business Tax is a payroll-based tax that applies to many employers operating in the state.

This distinction is important for entrepreneurs comparing Nevada to other low-tax states.

Other State and Local Taxes

Nevada also collects revenue through:

• Fuel taxes
• Alcohol and tobacco taxes
• Gaming and tourism-related taxes and fees
• Various state and local fees and assessments

Tourism plays a major role in Nevada's tax structure, shifting part of the tax burden to non-residents.

How long do you have to live in Nevada to avoid taxes?

Residency for tax purposes is demonstrated by whether or not an individual has taken steps to move into Nevada, and, sever residency in a previous state or country. You may still need to file a full-year, part-year, or non-resident income tax return in your current state for the year you move to Nevada.

If you are considering moving to Nevada, remember that personal income taxes are just part of the overall tax burden. In the state of Nevada, however, the overall cost of living is relatively low compared to other high tax states such as California, New Jersey, and New York.

Bottom line: Nevada taxes spending, property, and business activity rather than personal income. For many residents, especially high earners and retirees, this structure can be advantageous, but it is not tax-free living.

Last updated: January 17, 2026

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