🇺🇸 Nevada Income Tax — 2026 UPDATE

Nevada Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

⚠️Informational only — not legal or tax advice.

Tax year covered: 2025 (returns filed in 2026)
Applies to: Income earned January 1 – December 31, 2025
Last verified: February 19, 2026

Nevada State Income Tax

Table of Contents

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Quick Reference

Does Nevada have income tax? No
Constitutional prohibition: Yes — Nevada Constitution, Article 10, Section 1
State income tax rate: 0%
State income tax return required: No
Local income tax: No
Sales tax (state base rate): 6.85%
Sales tax (with local additions): 6.85% – 8.375% depending on county
Property tax: Yes — assessed at 35% of taxable value
Official source: https://tax.nv.gov

Key Takeaways

  • Nevada has no state income tax on individuals. Nevada residents do not pay state tax on wages, salaries, retirement income, capital gains, or any other personal income.
  • Constitutional prohibition: The Nevada Constitution, Article 10, Section 1 prohibits a tax on the wages or personal income of natural persons. This protection cannot be removed by the Legislature alone — it requires a constitutional amendment approved by voters.
  • No state income tax return: Nevada residents are not required to file a state income tax return. The Nevada Department of Taxation does not administer or require copies of federal income tax forms.
  • Federal taxes still apply: Nevada residents owe federal income taxes to the IRS at applicable federal rates. Nevada’s no-income-tax status applies only at the state level.
  • No local income taxes: Nevada does not permit local jurisdictions to levy income taxes. No city or county in Nevada imposes a local income tax.
  • Other taxes apply: Nevada funds state services primarily through sales taxes, property taxes, gaming taxes, and business taxes. These apply to Nevada residents regardless of income tax status.

Source: Nevada Department of Taxation — Income Tax in Nevada

Quick Questions About Nevada Income Tax

Does Nevada have a state income tax?
No. Nevada does not impose a state income tax on individuals. The Nevada Constitution, Article 10, Section 1 prohibits levying a tax on the wages or personal income of natural persons. This makes Nevada’s no-income-tax status a permanent constitutional protection.

What is the Nevada income tax rate for 2025?
0%. Nevada has no state income tax. There is no bracket, no rate, and no state return to file.

Do I need to file a Nevada income tax return?
No. Nevada residents do not file a state income tax return based on earned income such as wages or salaries. The Nevada Department of Taxation does not collect or require copies of federal income tax forms.

Is Social Security taxed in Nevada?
No. Nevada does not tax Social Security benefits. Because there is no state income tax, Social Security, pensions, 401(k) distributions, IRA withdrawals, and all other income sources are exempt from Nevada state tax.

Does Nevada tax retirement income?
No. Nevada does not tax any form of retirement income. Pensions, military retirement pay, 401(k) withdrawals, IRA distributions, Roth IRA distributions, and Social Security are all free from Nevada state tax.

Does Nevada have local income taxes?
No. Nevada does not permit local jurisdictions to impose income taxes. No city or county in Nevada levies a local income tax.

Do remote workers in Nevada owe Nevada income tax?
No. Nevada does not tax personal income regardless of where income is earned or where an employer is located. Nevada residents working remotely for out-of-state companies owe no Nevada income tax.

Source: Nevada Department of Taxation — Income Tax in Nevada

Constitutional and Statutory Authority

Constitutional Prohibition

Nevada’s no-income-tax status is embedded directly in the state constitution, making it one of the strongest protections in any U.S. state.

Nevada Constitution, Article 10, Section 1:

“No income tax shall be levied upon the wages or personal income of natural persons.”

This provision expressly prohibits the Nevada Legislature from enacting a personal income tax. Any future change would require a constitutional amendment proposed by the Legislature and approved by Nevada voters at a general election — a two-session process under Nevada constitutional amendment procedures.

Source: Nevada Constitution — Article 10, Section 1 (via Nevada Legislature)
Secondary research reference: Nevada Legislature Research Division — Residency Requirements in Nevada (PDF)

Business Taxes (Not Applicable to Individuals)

While individuals pay no income tax, Nevada does levy certain business taxes. These are distinct from personal income taxes and do not apply to employees or individual residents in their personal capacity:

Commerce Tax (NRS Chapter 363C):
Applies to businesses with Nevada gross revenue exceeding $4,000,000 in a fiscal year. Natural persons who are not operating a business (i.e., employees receiving wages) are expressly excluded. Natural persons operating a business who are not required to file federal Schedule C, E, or F are also excluded.

Modified Business Tax (NRS Chapter 363A/363B):
A payroll-based tax paid by employers on gross wages. This is an employer obligation, not a tax on employee income.

Source: NRS Chapter 363C — Commerce Tax
Source: Nevada Department of Taxation — NRS & NAC Reference

Nevada Tax Landscape: What Taxes Do Apply

Because Nevada has no income tax, the state relies on other revenue sources. Nevada residents and visitors should be aware of the following taxes:

Sales and Use Tax

Nevada’s base state sales tax rate is 6.85%. Local counties may add optional surtaxes, bringing the total rate higher depending on location. Sales tax applies to the purchase of most tangible personal property in Nevada.

County rates for 2025 (effective dates noted):
County Combined Rate Effective Date
Clark County (Las Vegas) 8.375% January 1, 2020
Washoe County (Reno) 8.265% —
Carson City 7.60% October 1, 2014
Churchill County 7.60% July 1, 2009
Storey County 7.60% July 1, 2009
Nye County 7.60% April 1, 2014
White Pine County 7.725% —
Douglas County 7.10% July 1, 2009
Elko County 7.10% July 1, 2016
Lander County 7.10% July 1, 2009
Lincoln County 7.10% July 1, 2009
Lyon County 7.10% July 1, 2009
Pershing County 7.10% April 1, 2017
Esmeralda County 6.85% —
Eureka County 6.85% —
Humboldt County 6.85% —
Mineral County 6.85% —

Notable exemption (effective January 1, 2025): Infant and adult diapers are exempt from Nevada sales and use taxes, pursuant to a voter-approved ballot measure. This exemption is effective through December 31, 2050.

Source: Nevada Department of Taxation — Sales Tax & Use Tax
Source: Nevada Department of Taxation — County Tax Rate Map (PDF)

Property Tax

Nevada levies property taxes administered at the county level. Key features of Nevada’s property tax system:

Assessment basis: Property is assessed at 35% of its taxable value, as established under Nevada law (NRS 361.227). Taxable value equals land value plus replacement cost of improvements, minus depreciation.

Constitutional and statutory caps:

  • The Nevada Constitution limits total property tax to no more than $5.00 per $100 of assessed valuation (Art. 10, Sec. 2)
  • NRS 361.453(1) further limits combined rates to $3.64 per $100 of assessed valuation

Tax abatement (tax cap) protections:

  • Primary residences and qualifying rental properties: Annual property tax increases are capped at 3% per year (NRS 361.4723)
  • All other property: Annual increases capped at up to 8% per year (NRS 361.4722)
  • The cap is calculated as the greater of the moving average growth rate or twice CPI, not to exceed 8%

These abatements provide significant protection against sharp property tax increases due to rising assessed values.

Source: Nevada Department of Taxation — Property Tax Elements and Applications (PDF)
Source: Nevada Department of Taxation — FY 2025-2026 Final Tax Cap Factors (PDF)
Source: Nevada Legislature — NRS 361.4722

Federal Income Tax Obligations

Nevada residents are not exempt from federal income taxes. Federal income tax obligations are determined entirely by federal law (the Internal Revenue Code) and are administered by the IRS. Nevada’s no-income-tax status has no effect on federal tax liability.

Key points for Nevada residents:

  • File a federal Form 1040 if required by IRS thresholds
  • Federal income tax rates for 2025 range from 10% to 37% (progressive)
  • Nevada is a community property state — this can affect how married couples allocate income on federal returns, particularly when filing separately (IRC Section 66 and related provisions)
  • The Nevada Department of Taxation does not require copies of federal tax forms and does not participate in federal tax administration

IRS Free File: Nevada residents who meet income thresholds may file federal returns for free at IRS Direct File

Source: Nevada Department of Taxation — Income Tax in Nevada
Source: IRS.gov

Nevada Residency: Establishing Legal Residency

While Nevada has no income tax, establishing Nevada residency is relevant for property tax exemptions, vehicle registration, voting, and demonstrating tax domicile to other states.

General Residency Rule

Under NRS 10.155, the legal residence of a person in Nevada is the place where the person has been physically present within the state during the period for which residency is claimed. Legal residence begins on the day actual physical presence starts.

Temporary absence with intent to return does not break residency.

Source: Nevada Legislature Research Division — Residency Requirements (PDF)

Key Nevada Residency Requirements by Purpose
Purpose Requirement
Voter registration Nevada resident for at least 30 days; precinct resident for at least 10 days before election (NRS 293.485)
Driver's license Must be a Nevada resident with a Nevada street address; must surrender any out-of-state license (NRS 483.240)
Vehicle registration Must register within 45 days of becoming a Nevada resident
Divorce proceedings Must have resided in Nevada for at least 6 weeks

Source: Nevada Department of Taxation — Nevada Legal Residency
Source: Nevada DMV — New Resident Guide

Proof of Nevada Residency (DMV)

To obtain a Nevada driver’s license or ID, applicants must present two documents showing name and Nevada residential address. Acceptable documents include:

  • Utility bills
  • Bank or financial statements
  • Lease or rental agreements
  • Nevada vehicle registration
  • Pay stubs
  • Property tax bill
  • Mortgage documents

Source: Nevada DMV — Proof of Identity & Residency

Seasonal Residency

Nevada recognizes a “seasonal resident” category for persons who temporarily reside in Nevada for at least 31 consecutive days each year but maintain legal domicile in another state. Seasonal residents may obtain a Nevada seasonal resident ID card (NAC 481.005). This card is marked to indicate the holder is licensed in another state.

Source: Nevada DMV — ID Cards

Nevada for Remote Workers

No Nevada Income Tax — Regardless of Employer Location

Nevada residents who work remotely for employers located in other states owe no Nevada income tax on that income. Because Nevada has no personal income tax, the location of an employer is entirely irrelevant to Nevada state tax obligations.

What this means for remote workers:

  • A Nevada resident working remotely for a California company owes $0 in Nevada state income tax
  • A Nevada resident working remotely for a New York company owes $0 in Nevada state income tax
  • Employer withholding for other states does not apply for Nevada purposes
  • There is no Nevada state income tax return to file

Source: Nevada Department of Taxation — Income Tax in Nevada

⚠️ Other States May Still Tax Nevada Residents

While Nevada imposes no income tax, remote workers living in Nevada and working for employers in other states may still owe income tax to those other states depending on the other state’s rules.

States that remote workers should monitor:

New York — “Convenience of the Employer” Rule:
New York applies a convenience of the employer doctrine. If a Nevada resident works remotely for a New York employer and the arrangement is for the employee’s convenience (not a business necessity of the employer), New York may tax the employee’s income as if work were performed in New York. This is one of the most aggressive multi-state tax rules in the country.

California — Aggressive Residency Audits:
California taxes the income of its residents on all worldwide income and conducts aggressive residency audits on individuals who claim to have left California. Former California residents who move to Nevada should carefully document their change of domicile to avoid California continuing to assert residency.

Pennsylvania — Local Tax Complexity:
Pennsylvania has over 2,500 local taxing jurisdictions. Pennsylvania residents or those with Pennsylvania-source income face multi-layered local tax obligations that are independent of Nevada’s status.

Connecticut:
Connecticut has its own credit system for taxes paid to other states, creating complex interactions for workers with Connecticut-source income.

Source: IRS Publication 505; applicable state revenue department guidance

Nevada Residents Working in Other States

A Nevada resident who physically travels to and performs work in another state generally owes income tax to that other state on the income earned there. Nevada provides no credit for taxes paid to other states (because Nevada has no income tax against which to credit). Taxpayers in this situation:

  • File a non-resident return in the state where work was physically performed
  • Owe that state’s income tax on the Nevada-resident’s work-state income
  • Owe nothing to Nevada

Non-Residents Working in Nevada

Non-residents who perform work physically in Nevada owe no Nevada income tax on income earned in Nevada. Nevada does not tax personal income regardless of the taxpayer’s state of residence or the location where work is performed.

Non-residents working in Nevada must still file income tax returns in their home state on all income, including income earned in Nevada, unless their home state has a reciprocity agreement or other exemption.

Source: Nevada Department of Taxation — Income Tax in Nevada

Relocating to Nevada: Tax Considerations

Nevada is a top destination for individuals relocating from high-tax states. The absence of a state income tax can result in substantial annual savings, particularly for high-income earners, retirees, and investors.

Establishing Nevada Domicile

To benefit from Nevada’s no-income-tax status when leaving a high-tax state, it is essential to properly establish Nevada as your state of domicile (legal permanent home). High-tax states — particularly California, New York, and Illinois — actively audit former residents who claim to have relocated.

Steps commonly used to establish Nevada domicile:

  1. Obtain a Nevada driver’s license — must surrender out-of-state license (NRS 483.240); must be done within 30 days of establishing residency per DMV guidance
  2. Register vehicles in Nevada — within 45 days of becoming a resident
  3. Register to vote in Nevada — requires 30 days in Nevada and 10 days in the precinct before an election (NRS 293.485)
  4. Establish a Nevada address as your primary residence (own or rent)
  5. Update legal documents — will, trusts, insurance policies, and professional licenses to reflect Nevada address
  6. Move financial accounts or open Nevada-based accounts
  7. Transfer professional and organizational memberships to Nevada
  8. Maintain records of days spent in Nevada vs. former state

Source: Nevada Department of Taxation — Nevada Legal Residency
Source: Nevada DMV — New Resident Guide

California Residents Moving to Nevada: Special Warning

California’s Franchise Tax Board (FTB) is known for aggressive residency audits of former residents who claim to have moved to low-tax states. California may continue to assert residency and tax liability for individuals who:

  • Maintain a California home or residence
  • Have a spouse or children remaining in California
  • Keep California-registered vehicles or professional licenses
  • Spend significant time in California after claiming Nevada domicile
  • Have economic ties (business, investments) primarily in California

Documentation recommended for former California residents:

  • Day-count log showing physical presence in Nevada vs. California
  • Nevada driver’s license (with California license surrendered)
  • Nevada voter registration
  • Evidence of Nevada as primary residence (lease/mortgage, utilities, mail)
  • Cancellation of California voter registration and professional licenses

This is not legal tax advice. Former California residents claiming Nevada domicile should consult a qualified tax professional regarding FTB residency audit exposure.

New York Residents Moving to Nevada

New York State and New York City both aggressively audit claimed domicile changes. New York applies a “statutory residency” test in addition to the domicile test: a taxpayer who maintains a place of abode in New York and spends more than 183 days in New York during the year can be taxed as a New York resident even if their domicile is Nevada.

Former New York residents should:

  • Spend fewer than 183 days per year in New York
  • Not maintain a “permanent place of abode” in New York
  • Document Nevada as true domicile with all the typical evidence

Retirees in Nevada

Nevada is widely regarded as one of the most retirement-friendly states in the country from a tax standpoint, because no retirement income of any kind is subject to Nevada state tax.

What Retirees Owe No Nevada Tax On
Income Source Nevada Tax
Social Security benefits $0
Private pension income $0
Public pension income (federal, state, local) $0
Military retirement pay $0
401(k) distributions $0
Traditional IRA distributions $0
Roth IRA distributions $0
Annuity income $0
Investment income (dividends, interest, capital gains) $0
Rental income $0

Source: Nevada Department of Taxation — Income Tax in Nevada

Federal Taxes on Retirement Income Still Apply

Nevada’s zero income tax does not affect federal tax obligations. Retirees in Nevada still owe federal income tax on:

  • Social Security benefits (up to 85% may be taxable at the federal level, depending on combined income)
  • Distributions from traditional IRAs and 401(k) plans
  • Pension income (unless previously taxed contributions were made)
  • Capital gains and dividend income above applicable thresholds

Source: IRS Publication 17 — Your Federal Income Tax

Property Tax Considerations for Retirees

Nevada’s property tax abatement system provides meaningful protection for retirees:

  • Primary residence tax cap: Annual property tax increases are limited to 3% per year, protecting retirees on fixed incomes from sharp increases (NRS 361.4723)
  • Veterans’ property tax exemption: Qualifying veterans (including retired military) who are bona fide Nevada residents may receive a property tax exemption on the first portion of assessed value (NRS 361.090)
  • Disabled veterans’ exemption: Veterans with permanent service-connected disabilities receive larger property tax exemptions scaled to disability percentage (NRS 361.091)

Source: Nevada Department of Taxation — Veterans’ Tax Exemptions FAQs
Source: Nevada Department of Taxation — Veterans’ Exemption FAQs (PDF)

Military Personnel in Nevada

Active Duty Military Stationed in Nevada (Non-Residents)

Under the Servicemembers Civil Relief Act (SCRA), active duty military members stationed in Nevada due to military orders do not become Nevada residents solely because of those orders. They:

  • Continue to owe income tax only to their state of legal domicile (home state)
  • Are not subject to Nevada income tax (there is none regardless)
  • Are not required to register vehicles in Nevada (exemption under SCRA); if they choose to register, they qualify for a Governmental Services Tax exemption (NRS Chapter 371)
  • Are not required to obtain a Nevada driver’s license (NRS 483.240 and SCRA)

Source: Nevada DMV — Licensing for Military Members Stationed in Nevada

Military Spouses (MSRRA)

Under the Military Spouses Residency Relief Act (MSRRA), spouses of active duty service members may maintain their home state residency and are not subject to Nevada income tax on income earned in Nevada, provided:

  • The spouse is in Nevada solely to be with the service member
  • The service member is in Nevada under military orders
  • The spouse maintains domicile in another state

There is no Nevada income tax issue in any case, since Nevada does not tax personal income. However, the spouse’s home state may still tax their Nevada-earned income.

Source: Nevada DMV — Licensing for Military Members Stationed in Nevada

Nevada Residents Who Are Active Military

Nevada residents who are members of the U.S. Armed Forces owe no Nevada income tax on any income — military pay, allowances, or otherwise — because Nevada has no state income tax.

They remain subject to federal income taxes on applicable income under federal law.

Veterans’ Property Tax Exemptions

Veterans who establish Nevada residency may be eligible for property tax exemptions. Qualifying criteria under NRS 361.090:

  • Must be a bona fide resident of Nevada for at least 6 months, OR have a valid Nevada driver’s license or ID (not seasonal resident)
  • Must have served at least 90 consecutive days on active duty during qualifying service periods
  • Must have received an honorable discharge (or still be serving)

Exemption amounts (adjusted annually for CPI changes from July 2003 baseline):

  • Standard veteran’s exemption: First $2,000 of assessed property valuation (adjusted for CPI)
  • Disabled veteran’s exemption (total permanent disability): First $20,000 of assessed value
  • Disabled veteran’s exemption (80–99%): First $15,000 of assessed value
  • Disabled veteran’s exemption (60–79%): First $10,000 of assessed value

The exemption applies to real property, personal property (including vehicle Governmental Services Tax), or may be donated to veterans’ homes.

Source: Nevada Department of Taxation — Veterans’ Tax Exemptions FAQs (PDF)
Source: Nevada Legislature — NRS 361.090

Students in Nevada

College students attending school in Nevada do not automatically become Nevada residents for tax purposes, and there is no state income tax issue regardless.

Key points for students:

  • Nevada imposes no income tax on wages earned in Nevada from part-time or summer employment
  • Students who are not Nevada residents are still not subject to Nevada income tax (Nevada taxes no one’s personal income)
  • Students’ home states may tax Nevada-earned income depending on home state rules
  • Students who want to establish Nevada legal residency for other purposes (voting, in-state tuition) should follow Nevada’s physical presence and domicile requirements

Source: Nevada Department of Taxation — Nevada Legal Residency

Common Tax Misconceptions About Nevada

Misconception: “I live in Nevada, so I owe no taxes at all.”
Fact: Nevada residents owe federal income taxes to the IRS. Nevada residents also pay Nevada sales taxes (6.85% to 8.375% depending on county) and property taxes on real property.

Misconception: “My Nevada employer doesn’t withhold state income tax — that means I’m getting away with something.”
Fact: Nevada employers correctly withhold no state income tax because there is none. This is legal and correct. Federal income tax withholding is still required.

Misconception: “I moved to Nevada from California, so I no longer owe California taxes.”
Fact: Moving to Nevada stops future Nevada (and new) income from being taxable in California, but only if you properly establish Nevada domicile. California may audit your claimed departure date and assert continued residency if you maintain California ties. Income earned while still a California resident remains taxable to California.

Misconception: “Nevada has no taxes.”
Fact: Nevada has no personal income tax. Nevada does levy sales taxes, property taxes, gaming taxes, and business taxes (Modified Business Tax and Commerce Tax for qualifying businesses). For most residents, the biggest tax obligations are federal income tax and Nevada sales tax.

Tax Glossary for Nevada

Domicile: Your permanent legal home — the place you intend to return to indefinitely. Nevada’s no-income-tax status benefits you only if Nevada is your domicile (other states will tax you if they claim you are still their resident).

Statutory Residency: Some states tax individuals based on the number of days spent in the state and whether they maintain a permanent place of abode there, even if domicile is elsewhere. Nevada does not apply this concept (there is no Nevada income tax regardless).

Constitutional Prohibition: Nevada’s ban on personal income tax is in the state constitution (Art. 10, Sec. 1), not merely in statute. This means the Legislature cannot create an income tax — voters must approve any constitutional change.

Community Property State: Nevada is a community property state under NRS 123.220. Income earned by either spouse during marriage is generally considered jointly owned. This affects federal tax returns — particularly married filing separately — but has no effect on Nevada state taxes (which don’t exist).

Sales Tax: A tax on the purchase of most tangible goods in Nevada, ranging from 6.85% to 8.375% depending on county. This is Nevada’s primary source of state revenue.

Assessed Value: For property tax purposes, 35% of the taxable value of the property. Property tax rates are applied to assessed value, not market value.

Abatement (Property Tax Cap): Nevada’s system that limits annual property tax increases to 3% for primary residences (NRS 361.4723) and up to 8% for other property (NRS 361.4722), protecting property owners from sharp year-to-year increases.

Governmental Services Tax: A Nevada-specific annual tax on vehicle registrations, calculated based on 35% of the original MSRP, depreciated over time (NRS Chapter 371). Not an income tax — it is a tax on vehicle ownership.

Commerce Tax: A Nevada business tax on gross revenue exceeding $4,000,000 per fiscal year, imposed on business entities under NRS Chapter 363C. Does not apply to employees or individuals in their personal capacity.

Modified Business Tax: An employer-paid payroll tax in Nevada (NRS Chapter 363A/363B). A tax on wages paid by employers, not on employee income.

Official Nevada Tax Resources

All information on this page is compiled exclusively from official government sources.

Nevada Department of Taxation

Nevada Department of Motor Vehicles

Nevada Legislature — Statutes and Constitution

Nevada Secretary of State

IRS Resources for Nevada Residents

Contact Information

Nevada Department of Taxation
Phone: (866) 962-3707
Website: https://tax.nv.gov/contact-the-department/
Office Locations: https://tax.nv.gov/contact-the-department/office-locations/

Nevada DMV
Website: https://dmv.nv.gov

Others

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Indiana
Alabama

Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current