Nevada has one of the lowest tax burdens in the United States, owing to a lack of personal income tax. The state relies on higher sales and excise taxes for income. There are also property taxes that must be given consideration.
Nevada personal income tax – None
Nevada state sales tax – 6.85%, with considerations for optional local sales tax rates, up to .875%. Combined sales taxation can be as high as 8.1% in some areas. Food and prescription drugs are exempt. This sales tax is higher than the national median.
Nevada excise taxes
Taxes will be assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes.
- $.80 per package of 20 cigarettes
- $3.60/gallon on spirits
- $.70 per gallon on table wine
- $.16 per gallon of beer
- $.331/gallon on gasoline
Local governments can levy additional taxes on gasoline, making Nevada gasoline taxes among the highest. There are also room occupancy taxes that reflect revenue on tourism in Nevada.
Nevada inheritance tax
Only federal laws are in effect. Estate taxes have been eliminated since 2005. Deaths prior to Jan 2005 must be filed for taxation.
Nevada payroll taxes
State Disability Insurance – none
State Unemployment Insurance – .30% to 5.40%, wage base is $26,600. New employer contribution is 2.95%. There is a .05% rate for the Career Enhancement Program is the maximum 5.4% rate is not assigned.
State minimum wage is 8.25/hr without health insurance, $7.25 with health insurance.
Nevada state property tax
Both state and local governments assess property taxes. Cities, school districts and towns can also collect property taxes. Properties are assessed on a local level and recorded on the state level. State authorities will make considerations for senior citizens with a heavy tax burden. Properties are revaluated every year and properties are taxed 35% of the fair market value of the property.
Nevada state corporate tax
There is no Nevada state corporate income tax.
Retirement income is not taxed as this is personal income. Homeowners 62 and older can receive a rebate of at least $500 and up to 90% of taxes paid if their income is below $28,677.