Nevada Income Tax Calculator

Nevada state tax quick facts Income tax: none Sales tax: 6.85% - 8.265% Property tax: 0.69% average effective rate Gas tax: 33.78 cents per gallon of regular gasoline, 28.56 cents per gallon of diesel

Taxpayers in Nevada enjoy one of the most tax-friendly environments in the country. There is no state income tax in Nevada. Instead, the state collects most of its revenue through sales taxes, sin taxes (on alcohol and cigarettes) and taxes on the casino and hotel industries. While the Silver State has the 13th-highest combined state and average local sales tax rate (7.98%), its average property tax rate is lower than the national average.

Nevada Income Tax

Whether you’re a teacher, a real estate mogul or a professional card shark, if you live in Nevada you won’t need to pay any state taxes on your earnings. That’s because Nevada has no state income tax of any kind. Wages, capital gains, inheritances and (yes) winnings, are all state income tax fee. Of course, you must still pay federal income taxes.

Nevada Sales Tax

Nevada’s statewide sales tax rate of 6.85% is eighth-highest in the U.S. Local sales tax rates can raise the sales tax up to 8.265%. The table below shows the county and city rates for every county and the largest cities in the state.

Most goods and merchandise in Nevada are subject to sales tax, however there are some exceptions. Food is exempt from sales tax, unless it is prepared for immediate consumption (in a restaurant, for example). Newspapers, prescription drugs, prosthetic devices and other types of durable medical equipment are also exempt from sales tax.

Nevada Property Tax

The median amount of property taxes paid in Nevada is roughly $1,500, well below the national average. Property taxes vary depending on a home’s assessed value and the local tax rates. On average, effective rates in Nevada are 0.69%. That means the average homeowner pays annual property taxes equal to 0.69% of their home’s market value. Of course, your own effective property tax rate will vary by county; average county rates range from 0.44% to 1.05%.

If the low property taxes have you considering a move to the Silver State, take a glance at our mortgage guide to better understand the details of getting a mortgage in Nevada.

Nevada Cigarette Tax

Smokers in Nevada pay the 22nd-lowest cigarette tax in the country, according to the Campaign for Tobacco-Free Kids. Tobacco taxes cost $1.80 per pack of 20 cigarettes, or nine cents per cigarette.

Nevada Alcohol Tax

Excise taxes on alcohol in Nevada depend on the alcoholic content of the beverage being sold. Beverages with 0.5% to 14% alcohol by volume (ABV), which includes most beer and many wines, pay a rate of between 16 and 70 cents per gallon. From 14.1% to 22% ABV, the rate is $1.30 per gallon; and from 22.1% to 80% (which includes most liquors), the rate is $3.60 per gallon. That is just the 38th-highest rate in the country, and adds up to about 71 cents on a fifth of alcohol. Sales tax still applies in addition to those excise tax rates.

Nevada Gas Tax

Whether you’re driving through Nevada or living their permanently, you’ll need to pay the state’s gas tax. The tax on regular gasoline is 17th highest in the country, at 33.78 cents per gallon. For a driver who goes 15,000 miles per year in a car that gets an average of 25 miles per gallon, that tax would cost just over $200 per year. The tax on diesel is slightly lower, at 28.56 cents per gallon.

Nevada Estate Tax

Nevada does not collect an estate tax. Although it did have one prior to the year 2005, it has been phased out. Likewise, there is no tax on inheritance in Nevada.

Photo credit: flickr

Over 80% of the land area of Nevada is managed by branches of the U.S. federal government, including the U.S. military and the Department of Agriculture. If it were a country, Nevada would be the world’s fourth largest producer of gold. There are nearly 200,000 slot machines in Las Vegas and over 1,500 licensed gambling places.