Nevada state income tax
Nevada has no state individual income tax. Wages, self-employment income, capital gains, and retirement withdrawals are not taxed by Nevada at the state level (federal tax still applies). The state funds itself through sales tax and property tax instead.
Does Nevada have a state income tax?
No. Nevada is one of the states with no individual income tax, so there is no state tax on your wages or salary. Nevada Constitution Article 10, Section 1(9) provides: 'No income tax shall be levied upon the wages or personal income of natural persons.' (The same section permits Nevada to tax business income/revenue, which is the constitutional basis for the Commerce Tax on large-revenue businesses) No statutory personal income tax exists to implement even if the state wanted one.
| Item | Nevada |
|---|---|
| State income tax | None |
| Capital gains tax | None (no income tax) |
| State sales tax | 6.85% (plus local) |
| Avg. property tax rate | 0.5% of home value |
| Estate / inheritance tax | None |
How does Nevada tax capital gains?
Nevada does not tax capital gains, because it has no state income tax. You still owe federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in Nevada?
Because Nevada has no income tax, Social Security, pensions, and 401(k)/IRA withdrawals are all untaxed at the state level. See Nevada retirement taxes for the full picture.
Sources
- Nevada income tax: Nevada Department of Revenue / Taxation.
- Nevada capital gains treatment: Nevada tax authority.
- Nevada sales tax: Nevada Department of Revenue.