As of 2023, eight states do not levy a state income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. A ninth state, New Hampshire, does not tax earned income, but taxes dividends and interest.
In Nevada, there is a 0% flat income tax rate for residents. The income tax rate outlook for 2024 is to remain at 0%.
Nevada does not offer state-level Earned Income Tax Credits for families with lower incomes. It does offer business tax credits. To lighten tax loads, federal deductions and credits are helpful.
Sales and Property Tax
The sales tax in Nevada is 6.85%. Clark County has an 8.375% sales tax rate to fund services. The average property tax rate is 0.69%. There are no estate or inheritance taxes.
Property taxes in Nevada pay for local services but rates are among the lowest in the U.S., averaging 0.53%.
Federal Taxes and Service Funding
While Nevada residents pay no state income tax, they still pay federal taxes. The state funds services through:
- Sales tax collection
- Fees
- Licenses
Despite higher sales tax, there are no personal income tax, corporate tax, franchise tax, or inventory tax in Nevada.