State-by-State Guide to Taxes on Retirees
Tool | November 2019

State-by-State Guide to Taxes on Retirees


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The Bottom Line
Flag of Nevada

Most Tax-Friendly

The Silver State offers retirees a jackpot of tax savings. There is no state income tax, so you can cash in your retirement plans and collect your Social Security checks without worrying about a big state tax bill. There are no estate or inheritance taxes in Nevada, either.

Property taxes are considerably below the national average. That’s good, as the state offers no property tax breaks for seniors.

Sales tax is one area where Nevada could do better. The state imposes a 6.85% tax, and counties may tack on up to 1.42% more. As a result, the average combined state and local sales tax rate is 8.14% (that’s the 13th-highest combined rate in the country). At least groceries are exempt from sales tax. In addition to sales taxes, vehicle owners are charged an annual “government services tax” that’s based on the vehicle’s value and age.

State Sales Tax

6.85% state levy. Localities can add as much as 1.42%, and the average combined rate is 8.14%, according to the Tax Foundation.

Income Tax Range

There is no state income tax.

Social Security

There is no state income tax.

Exemptions for Other Retirement Income

Nevada has no income tax.

Property Taxes

In Nevada, residents pay an average of $693 in taxes per $100,000 of assessed home value.

Tax breaks for seniors: None.

Vehicle Taxes

Sales tax is due on vehicle purchases, but private-party deals are exempt. An annual tax is also levied, based on the vehicle’s value and age. Example: The owner of a vehicle that is two years old with an original sticker price of $20,000 would pay $238. Clark and Churchill counties add to that to fund road construction; for this sample vehicle, they add another $60.

Inheritance and Estate Taxes