Nevada State Taxes: What You’ll Owe in the 2026 Tax Season

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With no individual state income tax, Nevada is one of the most tax-friendly states for older Americans. This means that residents also do not pay state tax on pensions, retirement income, Social Security or investment income. In addition, Nevada doesn’t have an inheritance or estate tax, and it has one of the lowest effective property tax rates in the country. Those factors contribute to the state’s rank of 20th on the Tax Foundation 2026 State Tax Competitive Index.

The big picture:

  • Income tax: There is no state income tax on individuals. 
  • Property tax: Real estate taxes vary depending on where you live. The average property tax rate in Nevada was 0.50 percent of a home’s assessed value, according to the most recent data available from the Tax Foundation.
  • Sales Tax: The state levies a 6.85 percent sales tax. In addition, there is an average local sales tax rate of 1.39 percent for an average combined state and local sales tax of 8.24 percent, according to the Tax Foundation.

How is income taxed in Nevada?

The state does not have a personal income tax.

Are pensions or retirement income taxed in Nevada?

No, pensions and retirement income are not taxed.

What about investment income?

There is no tax on investment income.

 

Does Nevada tax Social Security benefits?

The state does not tax Social Security, but filers may pay federal taxes on a portion of those benefits, depending on their “provisional income.” In most cases, provisional income is equal to the combined total of half your Social Security benefits, your adjusted gross income (not including any Social Security benefits) and any tax-exempt interest for the year.

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How is property taxed in Nevada?

The average property tax rate was 0.50 percent of a home’s assessed value, according to the most recent year for which data was available, according to the Tax Foundation. Property taxes vary by county. At the low end, Eureka County’s tax rate was 0.34 percent, while Lander and Mineral counties were the highest at 0.73 percent. The lowest median property tax paid was $511 in Eureka County, while the highest was $2,750 in Douglas County, according to the most recent data from the Tax Foundation.

What about sales and other taxes?

Sales tax: The statewide sales and use tax rate is 6.85 percent. On top of that, counties and some local municipalities add their own sales tax, and those average 1.39 percent, making the average combined state and local sales tax 8.24 percent, according to the Tax Foundation. (The highest local sales tax rate is 1.525 percent in Clark County.) Most retail sales ­— and related services ­— are subject to the sales tax. Exemptions from the state sales tax include unprepared food, newspapers and farm machinery and equipment, according to Nevada’s Department of Taxation. Delivery and shipping charges are not taxable if they are listed separately on retail invoices. Installation and repair services are also not taxed if they are listed on invoices separately.

Gas tax: Nevada taxes gasoline at 23.81 cents per gallon, according to the Tax Foundation. The state taxes clear diesel fuel at 27 cents per gallon. The state also allows counties to levy local gasoline taxes that fluctuate, and you can find those local gas taxes here.

Vehicle tax: The Department of Motor Vehicles levies a government services tax on vehicles, based on the depreciated value, at a rate of $0.04 per dollar. The state sales tax is applied at the time of purchase from a Nevada dealer.

Alcohol: Beer is taxed at 16 cents per gallon, wine is taxed at 70 cents or $1.30 per gallon, depending on alcohol volume, and spirits are taxed at $3.60 per gallon. 

Lottery: Nevada does not tax lottery winnings, but the state taxes online sports betting at graduated rates of 3.5 percent to 6.75 percent, according to the Nevada Gaming Commission and Nevada Gaming Control Board. In addition, the state is required to withhold 24 percent of lottery winnings over $5,000 for federal taxes.

Will I or my heirs have to pay inheritance and estate tax in Nevada?

No, Nevada has no inheritance or estate tax.

Are there any tax breaks for older Nevada residents?

Nevada offers an exemption for veterans, disabled veterans and their surviving spouses that can reduce the taxable value of their real property. The state requires veterans who apply to have served for at least 90 consecutive days and have an honorable discharge or a certificate of satisfactory service. They also must have lived in the state for at least six months or have a state-issued driver’s license or identification card. Disabled veterans need to have a permanent disability connected to their active duty and have an honorable discharge. (Veterans, disabled veterans and surviving spouses can receive only one of these two exemptions.) Learn details from Nevada’s Department of Taxation.

Are military benefits taxed in Nevada?

Because Nevada does not have a personal income tax, military retirement pay is not taxed.

What is the deadline for filing Nevada taxes in 2026?

No state income tax return is required. The deadline for filing federal tax returns was April 15. Taxpayers who filed for a federal extension have until Oct. 15 to file their returns, although any taxes due should have been paid by April 15.

 

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