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Official Tax Guide

Nevada Taxes 2025: Income, Sales, and Property Tax Guide

Complete guide to Nevada state taxes. Income tax (0%), sales tax, and what you need to know before moving.

Updated January 15, 2026
5 min read

State Tax Guide 2025: Nevada

Moving to Nevada offers a significant financial advantage for many households, primarily due to its tax structure. Unlike many states, Nevada does not levy a tax on personal income. This guide provides an overview of what new residents can expect regarding state and local taxes in 2025.

Income Tax

Nevada is one of the few states with no personal income tax.

  • Rate: 0%
  • Structure: Neither progressive nor flat, as there is no tax on wages, salaries, or dividends.
  • Impact: Residents do not file a state individual income tax return.
  • Corporate Income Tax: While individuals are exempt, Nevada does levy a Commerce Tax on certain business revenues (over $4 million annually), though this generally does not affect individual employees.

Sales Tax

Nevada relies heavily on sales tax to fund state and local services.

  • State Rate: The base state sales tax rate is 6.85%.
  • Local Taxes: Counties and cities may add additional taxes. In some areas, particularly tourist-heavy zones like Las Vegas and Reno, the combined rate can exceed 8%.
  • Nexus: Remote sellers and marketplace providers with economic nexus in Nevada must collect and remit sales tax.

Property Tax

Nevada property taxes are generally considered moderate compared to the national average.

  • General Context: Nevada utilizes a "split-rate" system where land and improvements (buildings) are assessed at different percentages of their taxable value.
  • Rate Range: While rates vary by county, the effective tax rate typically falls between 0.5% and 0.7% of the property's assessed value.
  • Exemptions: Homeowners may be eligible for exemptions, such as the Senior Citizen Homeowners’ Exemption (partial exemption for qualifying seniors).

Other Taxes

While Nevada has no income tax, there are other excise taxes to be aware of:

  • Fuel Tax: Nevada imposes a tax on gasoline and diesel. As of 2025, the total state tax on a gallon of gasoline is approximately $0.23 (excluding federal taxes).
  • "Sin" Taxes: Nevada taxes alcohol and tobacco products.
    • Alcohol: A wholesale tax is levied on beer, wine, and spirits (ranging from $0.70 to $3.60 per gallon depending on the type).
    • Tobacco: A cigarette excise tax of $1.80 per pack applies.
  • Inheritance/Estate Tax: Nevada does not impose a state inheritance tax or estate tax. However, federal estate tax laws still apply.

Retiree Taxes

Nevada is considered a tax-friendly state for retirees.

  • Social Security: Social Security retirement benefits are not taxed by the state.
  • Pensions and 401(k)s: Income from pensions, 401(k)s, and IRAs is not taxed at the state level.
  • Sales Tax Impact: While income tax is favorable, retirees should budget for the cost of sales tax on goods and services.

Comparison to Neighbors

Nevada’s tax landscape differs significantly from its neighbors:

  • California: Nevada shares a border with California, which has a high progressive income tax (up to 13.3%) and higher sales taxes. Many residents move from California to Nevada to avoid these levies.
  • Arizona: Arizona has a progressive income tax (ranging roughly 2.5% to 4.5% depending on income brackets) and a combined sales tax rate generally lower than Nevada’s.
  • Utah: Utah has a flat income tax rate of 4.55% and a base sales tax rate of 4.7% (plus local additions).

Disclaimer: Tax laws change frequently and can vary by jurisdiction. The information provided in this guide is for general educational purposes only and is not intended as specific tax or legal advice. Please consult a Certified Public Accountant (CPA) or tax professional to discuss your specific financial situation.