Nevada does not charge state income tax on wages, salaries, or investment income

Nevada is one of nine states with no state income tax. That means you will not owe Nevada state income tax on money you earn from a job, self-employment, dividends, capital gains, or retirement accounts. If you live or work in Nevada, you do not file a state income tax return to the state.

This applies whether you are a resident or a non-resident who works in Nevada. If you earn income in Nevada but live in another state, Nevada will not tax that income — though your home state may. If you live in Nevada but earn income in another state, that other state may tax you, depending on its rules and whether you are a resident there.

The absence of income tax does not mean Nevada has no taxes at all. The state funds schools, roads, and services through other revenue sources, which you will encounter in different forms.

Key Takeaways

  • Nevada residents and workers pay no state income tax on wages, self-employment income, or investment gains.
  • You still owe federal income tax to the IRS, and you must file a federal return if your income meets the threshold.
  • Nevada collects revenue through sales tax (currently 6.85 percent statewide, higher in some counties), property tax, and business taxes instead.
  • If you work in Nevada but live in another state, that state may still tax your income depending on residency rules.
  • Moving to Nevada for tax reasons requires establishing residency, which involves more than just changing your address.

What taxes you do owe if you live in Nevada

No state income tax does not mean no taxes. Nevada residents and workers pay federal income tax to the IRS at the same rates as everyone else. You must file a federal return with the IRS if your income exceeds the filing threshold for your age and filing status — the threshold changes each year, but for 2024 a single person under 65 generally needs to file if they earned more than $14,600.

Nevada also charges sales tax. The statewide base rate is 6.85 percent, but counties add their own local sales tax on top of that. Clark County (Las Vegas) and Washoe County (Reno) each add 1.15 percent, bringing the total to 8 percent. Other counties vary. You pay sales tax when you buy most goods and some services in Nevada.

Property owners in Nevada pay property tax to their county. The rate depends on the county and the assessed value of the property. Nevada also taxes businesses through a modified business and occupation tax, which is a gross receipts tax on certain business activities.

How Nevada's lack of income tax compares to neighboring states

California, Arizona, and Utah all charge state income tax. California's top rate is 13.3 percent on high earners. Arizona ranges from 2.55 to 4.5 percent depending on income. Utah's top rate is 4.95 percent. Oregon charges up to 9.9 percent. Idaho goes up to 5.8 percent.

If you earn a high income and live near the Nevada border, the difference in state income tax can be substantial. A person earning $200,000 in California pays significantly more in state income tax than the same person in Nevada. However, Nevada's higher sales tax and property tax in some areas can offset part of that advantage, depending on your spending and property ownership.

Wyoming and Texas also have no state income tax. South Dakota, Tennessee, and Florida have no income tax on wages but tax investment income or have other income-related taxes. Each state funds itself differently, so the total tax burden depends on your income type, spending, and property ownership.

Establishing Nevada residency for tax purposes

straightforward moving to Nevada or working there does not automatically make you a Nevada resident for tax purposes. States define residency differently, and your home state may still claim you as a resident if you maintain ties there.

Nevada considers you a resident if you live in the state with the intent to remain. The state does not have a specific residency test like some states do, but it looks at factors such as where you spend most of your time, where your family lives, where you own property, where you hold a driver's license, and where you register your vehicle. If you move to Nevada but keep a home in another state, maintain a job there, or have family there, your original state may argue you are still a resident and owe state income tax.

If you are moving to Nevada specifically to reduce your tax burden, document your move carefully. Get a Nevada driver's license, register your vehicle in Nevada, establish a Nevada address, and update your mailing address with employers and financial institutions. If you own property in another state, be prepared to explain why you are no longer a resident there.

What happens if you work in Nevada but live elsewhere

If you live in California, Arizona, or another state with income tax and work in Nevada, your home state will likely tax your wages. Nevada will not tax you, but your state of residence will. Some states have reciprocal agreements that prevent double taxation, but most do not.

You may be able to claim a credit on your home state return for taxes paid to Nevada, but Nevada does not charge income tax, so there is no Nevada tax to credit. You will owe your home state's full income tax on the wages you earned in Nevada.

If you are self-employed and work in Nevada while living in another state, the rules depend on where you conduct business and where your clients are located. Consult a tax professional in your home state to understand your obligations.

Remote work and Nevada residency

If you work remotely for a company based in another state while living in Nevada, Nevada will not tax your income. Your employer's state may or may not tax you, depending on that state's rules and whether you are considered a resident there.

Some states tax remote workers based on where the employer is located, while others tax based on where the employee lives. If you are a Nevada resident working remotely for a California company, California may still try to tax you if you are considered a California resident. The key factor is residency, not where the work happens.

If you are considering a move to Nevada for remote work, establish clear Nevada residency first. Change your driver's license, register your vehicle, update your address with your employer, and maintain your Nevada residence as your primary home. Keep records of time spent in Nevada versus your home state.

Federal taxes you cannot avoid by living in Nevada

Living in Nevada does not reduce your federal income tax. You owe the IRS the same tax on the same income as someone in any other state. The federal tax brackets, deductions, and credits are the same everywhere.

You still must pay federal payroll taxes (Social Security and Medicare) if you are employed. Self-employed people pay self-employment tax to cover both the employer and employee portions. These are federal obligations that Nevada residency does not change.

If you have investment income, you owe federal tax on capital gains, dividends, and interest. Nevada does not tax these, but the IRS does. If you inherit money or property, federal estate tax may explore depending on the size of the estate, though most estates are below the federal threshold.

Frequently Asked Questions

Do I have to file a Nevada state income tax return?

No. Nevada has no state income tax, so there is no Nevada state return to file. You still must file a federal return with the IRS if your income meets the federal filing threshold. Check the IRS website each year for the current threshold based on your age and filing status.

If I move to Nevada, will I stop owing taxes to my old state?

Not automatically. Your previous state may consider you a resident until you establish residency elsewhere. If you own property there, have family there, or maintain other ties, your old state may claim you still owe income tax. Establish clear Nevada residency by getting a Nevada driver's license, registering your vehicle, and updating your address with employers and banks.

Does Nevada tax retirement income like Social Security or pensions?

No. Nevada does not tax Social Security, pensions, retirement account withdrawals, or other retirement income. You will owe federal tax on some retirement income depending on the type and amount, but Nevada will not tax it.

What if I own a business in Nevada?

Nevada has no corporate income tax, but businesses must pay the modified business and occupation tax, a gross receipts tax. The rate and rules depend on the type of business. Consult a Nevada tax professional or the Nevada Department of Taxation for your specific situation.

Can I claim Nevada residency if I only own property there but live elsewhere most of the year?

Probably not. Owning property alone does not establish residency. Nevada looks at where you spend most of your time, where your family lives, and where you maintain your primary residence. If you live in another state most of the year, that state will likely claim you as a resident for tax purposes.