Nevada state tax: Overview
Navigating the complexities of state taxes can be daunting, but understanding Nevada's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of The Silver State's tax system, from income and sales taxes to property taxes and retirement benefits.
Nevada is a great place if you're looking to keep more of your income. There’s no state income tax at all, and property taxes tend to be on the lower side compared to other states.
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It also keeps things simple when it comes to estate planning. There are no estate or inheritance taxes, so you can pass things on without added tax concerns.
In the news: Kiplinger recently named Nevada the most tax-friendly state for middle-class families. Check out the full report here: Best State for Middle-Class Families Who Hate Paying Taxes.
[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Nevada state income tax
Nevada is one of nine states that have no personal income tax.
Nevada retirement taxes
Nevada is one of the states with no income tax, so you don’t need to worry about having any of your retirement income taxed on the state level. There are no estate or inheritances taxes to worry about in Nevada either.
- Social Security: Not taxable
- Pensions: Not taxable
- 401(k) and IRA Distributions: Not taxable
Nevada sales tax
Nevada has a state sales tax rate of 4.6%. Localities can add as much as 3.775%, and the average combined rate is 8.24%, according to the Tax Foundation.
- Groceries: Exempt
- Clothing: Taxable
- Motor Vehicles: Taxable
- Prescription Drugs: Exempt
Nevada typically offers a yearly sales tax holiday in October. According to the Nevada Department of Taxation, the "period of tax exemption includes the Friday on which Nevada Day is observed and the Saturday and Sunday immediately following."
Nevada property tax rate
In Nevada, the median property tax rate is 0.49% of assessed home value, according to the Tax Foundation.
Nevada gas tax
Gasoline | $0.23 per gallon |
Diesel | $0.27 per gallon |
Source: Sales Tax Handbook
Nevada tobacco and alcohol taxes
Product | Tax Amount |
|---|---|
Cigarettes | $1.80 per pack |
Other Tobacco Products | 30% of the wholesale price |
Medical Marijuana | 6.85% |
Recreational Marijuana | 16.85% (sales tax + excise tax) |
Source: Sales Tax Handbook
Product | Tax Amount |
|---|---|
Beer | $0.16 per gallon |
Wine | $0.70 per gallon |
Liquor | $3.60 per gallon |
Source: Sales Tax Handbook
Nevada estate and inheritance taxes
Nevada doesn't have estate or inheritance tax.
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