Overview of Nevada Taxes
Nevada has no state income tax. The average effective property tax rate for the state is much lower than the national average.
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Your Income Taxes Breakdown
| Tax Type | Marginal Tax Rate | Effective Tax Rate | 2020 Taxes* |
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* These are the taxes owed for the 2020 - 2021 filing season.
Your 2020 Federal Income Tax Comparison
- Your marginal federal income tax rate
- Your effective federal income tax rate
- Your federal income taxes
Total Estimated 2020 Tax BurdenIncome Tax $ Sales Tax $ Fuel Tax $ Property Tax$ Total Estimated Tax Burden $ Percent of income to taxes = % | $ |
- About This Answer
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2019 - 2020 filing season based on the Trump Tax Plan.
How Income Taxes Are Calculated
- First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
- Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
- Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
- Your location will determine whether you owe local and / or state taxes.
- Last Updated: January 1, 2020
When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.
Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.
- Our Tax Expert
Jennifer Mansfield, CPA Tax
Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.
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Taxes in Nevada
Nevada State Tax Quick Facts
- Income tax: None
- Sales tax: 6.85% - 8.375%
- Property tax: 0.53% average effective rate
- Gas tax: 23.00 cents per gallon of regular gasoline, 27.00 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 as well as taxes on the casino and hotel industries. While the Silver State has the one of the highest combined state and average local sales tax rates (8.23%), its average property tax rate is lower than the national average.
A financial advisor in Nevada can help you understand how taxes fit into your overall financial goals. Financial advisors can also help with investing and financial planning - including retirement, homeownership, insurance and more - to make sure you are preparing for the future.
Nevada Income Taxes
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 devoid of state income taxes. Of course, you must still pay federal income taxes.
Nevada Sales Tax
Nevada’s statewide sales tax rate of 6.85% is seventh-highest in the U.S. Local sales tax rates can raise the sales tax up to 8.375%. 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 $1,695, 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 0.53%. That means the average homeowner pays annual property taxes equal to 0.53% of their home’s market value. Of course, your own effective property tax rate will vary by county, as average county rates In Nevada range from 0.44% to 1.04%.
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 23rd-highest cigarette tax in the U.S., according to IGEN. 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 beers and many wines, come with 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% ABV, which includes most liquors, the rate is $3.60 per gallon. Sales tax still applies in addition to those excise tax rates.
Nevada Gas Tax
Whether you’re driving through Nevada or living there permanently, you’ll need to pay the state’s gas tax. The tax on regular gasoline is 23 cents per gallon. For a driver who travels 15,000 miles a year in a car that gets an average of 25 miles per gallon, that tax would cost just over $130 per year. The tax on diesel is slightly higher, at 27.00 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.
- 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.
Places with the Lowest Tax Burden
Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.
Methodology
To find the places with the lowest tax burdens, SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country.
To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.
In order to determine sales tax burden, we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income after taxes. This balance is then multiplied by 35% to estimate the sales tax paid.For property taxes, we compared the median property taxes paid in each county.
For fuel taxes, we first distributed statewide vehicle miles traveled to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.
We then added the dollar amount for income, sales, property and fuel taxes to calculate a total tax burden. Finally, each county was ranked and indexed, on a scale of 0 to100. The county with the lowest tax burden received a score of 100 and the remaining counties in the study were scored based on how closely their tax burden compares.
Sources: US Census Bureau 2018 American Community Survey, Government Sources, Avalara, American Petroleum Institute, GasBuddy, UMTRI, Federal Highway Administration, SmartAsset
