State-by-State Guide to Taxes on Retirees

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NICKNAME
The Silver State

BOTTOM LINE: TAX-FRIENDLY
Nevada offers retirees a jackpot of tax savings because there is no state income tax. But its state sales tax is 6.85%, and counties may add up to an additional 1.25%. And almost every jurisdiction in Nevada gets a bite at the property-tax apple. The assessed value for tax purposes is based on 35% of the fair market value of the property.

STATE SALES TAX
6.85% until July 2013, when it falls to 6.5% (food and prescription drugs are exempt). Counties may tack on up to 1.25% more.

INCOME-TAX RANGE
No state income tax.

SOCIAL SECURITY
Benefits are not taxed.

EXEMPTIONS FOR OTHER RETIREMENT INCOME
Retirement income is not taxed.

PROPERTY TAXES
All property in the state is subject to tax by the state, counties, cities, towns and school districts. The assessed valuation for tax purposes is based on 35% of the fair market value of the property, which is revalued every year.

Tax breaks for seniors: No property tax breaks for seniors offered.

INHERITANCE AND ESTATE TAXES
There is no inheritance tax and no estate tax.

Visit RetirementLiving.com for a complete rundown of taxes in Nevada.

States More Tax-Friendly for Retirees

• Our picks of the 10 most tax-friendly states for retirees
• The nine states with no income tax
• The five states with no sales tax
• The five states with the lowest sales taxes (including averages of county/city sales taxes)
• The 36 states that don't tax Social Security benefits

States Less Tax-Friendly for Retirees

• Our picks of the 10 least tax-friendly states for retirees
• The seven states with the highest income tax rate (based on highest tax bracket)
• The five states with the highest sales taxes (including average county/city sales taxes)
• The 22 states that impose their own estate taxes or inheritance taxes