Nevada does not levy a state income tax on individual wages and salary. This prohibition is enshrined in the state constitution.
Tax Overview
Nevada constitutionally prohibits a state personal income tax and also has no corporate income tax. The state generates revenue primarily through sales taxes, gaming and entertainment taxes from its casino industry, and the Commerce Tax on businesses with gross revenue exceeding $4 million. This tax-friendly environment has made Nevada a popular destination for individuals and businesses relocating from higher-tax states.
Other Taxes in Nevada
6.85% state sales tax rate, with local additions bringing the combined rate up to 8.375% in Clark County (Las Vegas area).
Nevada levies a percentage fee on gross gaming revenue from casinos and other gaming establishments, one of the state's largest revenue sources.
The Commerce Tax applies to businesses with Nevada gross revenue exceeding $4 million, with rates varying by industry (0.051% to 0.331%).
Nevada levies a net proceeds of minerals tax on mining operations, as mineral extraction is a significant industry in the state.
Local governments levy property taxes. Nevada caps the annual increase in property tax bills at 3% for primary residences and 8% for other property.
Federal Taxes Still Apply
While Nevada does not levy a state income tax, residents are still subject to federal income tax, FICA taxes (Social Security and Medicare), and self-employment tax. Use our Federal Income Tax Calculator to estimate your federal tax liability.