Our comprehensive guide to taxes on retirement income, property and purchases, as well as special tax breaks for seniors, in every state. Go to Retiree Tax Map Nevada View State Compare List (0) selected | Compare up to 5 The Bottom Line Most Tax-Friendly One of Kiplinger's top ten most tax-friendly states for retirees, the Silver State 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%. Plus, almost every jurisdiction in Nevada gets a bite of the property tax apple. State Sales Tax 6.85% (food and prescription drugs are exempt). Counties may tack on up to 1.25% more. Income Tax Range There is no state income tax. Social Security Benefits are not taxed. Exemptions for Other Retirement Income Retirement income is not taxed.IRAsRetirement income is not taxed.401(k)s and Other Defined-Contribution Employer Retirement PlansRetirement income is not taxed.Private PensionsRetirement income is not taxed.Public PensionsRetirement 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. Median property tax on the state's median home value of $207,600 is $1,749, according to the Tax Foundation.Tax breaks for seniors: No property tax breaks are offered for seniors. Inheritance andEstate Taxes There is no inheritance tax or estate tax.