Nevada Tax Calculator 2026

Nevada Tax Overview

Nevada Has No State Income Tax

Nevada is one of nine states that does not impose a state income tax on individuals. This means wages, salaries, investment income, capital gains, retirement distributions, Social Security benefits, and all other forms of personal income are completely free from state income tax in Nevada. The Nevada Constitution actually prohibits the state from ever imposing a personal income tax, providing a permanent guarantee to residents.

This zero-income-tax environment has made Nevada one of the most popular destinations for individuals and businesses relocating from high-tax states, particularly California. The state has seen substantial population growth in the Las Vegas and Reno metropolitan areas as residents of neighboring states seek to reduce their tax burden. Nevada also has no corporate income tax in the traditional sense, though it does impose a Commerce Tax on businesses with gross revenue exceeding $4 million.

While the absence of income tax is a significant advantage, it is important to understand that Nevada compensates through other revenue sources. Sales tax, gaming taxes, hotel room taxes, the Modified Business Tax (payroll tax), and mining taxes all contribute to state revenue. Residents should consider the total tax picture, including higher-than-average sales taxes, when evaluating Nevada's overall tax friendliness.

Nevada Sales Tax

Nevada's state sales tax rate is 6.85%, which is among the higher state-level rates in the nation. Local jurisdictions add additional taxes that bring the combined rate higher. The average combined state and local sales tax rate in Nevada is approximately 8.23%.

Clark County, which includes Las Vegas, has one of the highest combined rates at 8.375%. Washoe County (Reno) has a combined rate of approximately 8.265%. Nevada taxes most tangible personal property, including clothing and household goods. Groceries (unprepared food) are exempt from sales tax, as are prescription medications.

Notable Local Rates

• Las Vegas (Clark County) — 8.375% combined
• Reno (Washoe County) — 8.265% combined
• Henderson — 8.375% combined
• North Las Vegas — 8.375% combined
• Carson City — 7.60% combined

Nevada Property Tax

Nevada's effective property tax rate is approximately 0.48%, making it one of the lowest in the nation. This is primarily due to Nevada's property tax abatement system, which caps the annual increase in property taxes. For owner-occupied primary residences, the property tax bill cannot increase by more than 3% per year, regardless of how much the assessed value increases. For all other property (rental, commercial, vacant land), the cap is 8% per year.

This cap system, combined with a constitutional limit on the total tax rate of $3.64 per $100 of assessed value (with assessed value set at 35% of market value), keeps Nevada property taxes remarkably low. The system was implemented after the housing boom of the mid-2000s caused property values and tax bills to spike dramatically. Even as Las Vegas home values have recovered and surpassed their pre-recession peaks, the 3% annual cap keeps tax bills well below what they would be at the full assessed value.

Nevada Gaming and Tourism Taxes

Nevada's unique position as the gambling capital of the United States provides the state with a revenue source that most other states lack. The gaming industry generates billions of dollars in tax revenue annually through the state's Gaming Tax, which applies a percentage-based tax on gross gaming revenue. The tax rate is graduated, ranging from 3.5% on the first $50,000 of monthly gross revenue to 6.75% on revenue exceeding $134,000 per month.

Tourism also supports Nevada's tax base through hotel room taxes, entertainment taxes, and the sales tax revenue generated by the millions of visitors who spend money in the state each year. The Las Vegas Convention and Visitors Authority estimated that tourists contribute significantly to the sales tax base, effectively subsidizing public services for Nevada residents. This unique revenue structure is a key reason why Nevada can afford to operate without a state income tax.

The Modified Business Tax (MBT) is Nevada's payroll tax on employers, currently set at 1.378% on taxable wages exceeding $50,000 per quarter for most businesses. Financial institutions pay a higher rate of 2%. The Commerce Tax, introduced in 2015, applies to businesses with Nevada gross revenue exceeding $4 million at rates varying by industry from 0.051% to 0.331%.

Nevada vs. Neighboring States

Nevada's no-income-tax status gives it a significant advantage over most of its neighbors:

• California — 1%-13.3% income tax (the highest in the US), 8.68% avg sales tax, 0.71% property tax. Moving from California to Nevada eliminates state income tax entirely, which can save high earners tens of thousands annually.
• Arizona — 2.5% flat income tax, 8.37% avg sales tax, 0.51% property tax. Arizona has low income tax but not zero. Sales tax and property tax are comparable to Nevada.
• Utah — 4.65% flat income tax, 7.19% avg sales tax, 0.57% property tax. Utah taxes income and has similar sales/property taxes.
• Oregon — 4.75%-9.9% income tax, no sales tax, 0.82% property tax. Oregon and Nevada are mirror images: Oregon taxes income but not sales; Nevada taxes sales but not income.
• Idaho — 5.695% flat income tax, 6% sales tax, 0.63% property tax. Idaho taxes both income and sales, making Nevada significantly more tax-friendly for most people.

Use our state comparison calculator to see exactly how much you could save in Nevada vs. your current state.