Nevada State Income Tax in 2025: A Guide

One significant advantage of life in Nevada is that, like some other US states (Florida and Texas, for example), it does not have a state income tax.  

While Nevada residents aren’t subject to state income taxes, they’re still required to pay federal income taxes, as well as state sales and property taxes. You must budget for those other taxes, particularly sales tax—which is higher than in many other states.  

The lack of state income taxes is a major benefit to living in the Silver State because it simplifies yearly tax preparation. Remember, however, that you must still pay federal taxes if you meet the IRS income filing threshold.   

*Note that you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only. 

Specific income tax considerations in Nevada

Because Nevada has no state income tax, income sources like retirement and pension funds, investment earnings, Social Security benefits, and military pay aren’t taxed at the state level. 

That’s a meaningful advantage for retirees, investors, and military members who can keep more of their income. However, Nevada residents are still subject to federal income tax. So, staying on top of your federal obligations is essential. 

If you live in a state with income tax but earned money in Nevada, you’ll still need to report those earnings to your home state and on your federal return. Similarly, Nevada residents working in other states with income tax might need to file nonresident returns for those states.  Note that Nevada is a community property state, which can affect how married couples file their federal taxes, especially if they wish to file separately.

Does Nevada have federal income tax?

If you earn money in Nevada, you likely owe federal income tax. There are seven federal income tax brackets for 2024 (tax filing in 2025), with rates spanning from 10% to 37%, based on your taxable income and filing status. 

Other types of common taxes in Nevada

Even though Nevada doesn’t levy state income taxes, residents still contribute to the state’s budget through property and sales taxes.  

• Property taxes in the Silver State are relatively low, with an average effective rate of 0.44%. Property taxes are calculated based on the market value of the land plus the replacement cost of the building, less 1.5% depreciation per year since the building was constructed. This assessed value is then multiplied by the tax rate determined by the Department of Taxation.   
• Sales tax, meanwhile, is 6.85% statewide. Localities can also add sales tax, for an average combined rate of 8.24%. This tax applies to most goods and some services, so it can be a significant source of revenue for state and local budgets. 

Other taxes, such as a 23.81 cents per gallon gas tax and a $1.80 cigarette excise tax rate, help fund additional priorities.

How to file income tax in Nevada

Although Nevada doesn’t impose a state income tax, most residents likely must file federal taxes each year and account for other Nevada-specific taxes when planning finances. 

TurboTax makes filing your taxes simple and helps you understand Nevada-specific tax rules that affect your situation. Whether you’re filing independently or want a bit more guidance, TurboTax has options to meet your needs.  

If you prefer expert support from local Nevada experts, TurboTax experts are here to answer your questions and can even file for you. 

With TurboTax, navigating tax season is straightforward, leaving you confident and prepared. Ready to get started? We’ll help you file with confidence.