How Nevada taxes retirement income
Nevada has no state income tax, so no retirement income is taxed at the state level: not Social Security, not pensions, and not 401(k) or IRA withdrawals. This makes Nevada one of the more tax-friendly states for retirees. Federal income tax still applies.
Retirement income tax in Nevada, at a glance
| Income type | Taxed by Nevada? |
|---|---|
| Social Security | No |
| Pensions | No |
| 401(k) / IRA withdrawals | No |
| Estate / inheritance tax | None |
| Avg. property tax rate | 0.5% of home value |
Does Nevada tax Social Security benefits?
No. Nevada does not tax Social Security benefits. That follows automatically from having no state income tax.
Does Nevada tax pensions and 401(k) or IRA withdrawals?
No. With no state income tax, Nevada does not tax pension income or withdrawals from 401(k) plans and IRAs. You still owe federal tax on withdrawals from traditional (pre-tax) accounts.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- Nevada taxation of retirement income (Social Security, pensions, 401(k)/IRA): Nevada Department of Revenue / Taxation.