Go to Retiree Tax Map Nevada Add to State Compare List | View List 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 5.5%, and counties may add up to an additional 1.3%. Plus, almost every jurisdiction in Nevada gets a bite of the property tax apple. State Sales Tax 5.5% state levy. Localities can add as much as 1.3%, and the average combined rate is 7.98%, according to the Tax Foundation. 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. The median property tax on Nevada's median home value of $192,100 is $1,420.Tax breaks for seniors: No property tax breaks are offered for seniors. 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 There is no inheritance tax or estate tax.