If you’re worried about figuring out your Nevada taxes for this year, make your life a little easier by using our state tax calculator. There’s no question that figuring out Nevada’s taxes can be tricky with so many unique technicalities and details to pay attention to. We can help make it simpler.

Remember, failing to correctly fulfill your tax obligations can result in fines and penalties. There’s no need to go it alone, however — Community Tax’s resources, from our State Tax Calculator to our Tax Preparation Services, are sure to get you through tax season easily while helping you save. Start by using our tax calculator to give yourself an idea of what you may owe.

Read on to find out everything you’ll need to know about Nevada state taxes.

You’re probably familiar with federal taxes, the portion of money that the federal government takes from your paycheck, or requires you pay on your property and investments. Every year, you’re required to file a tax return that ensures that you were taxed the right amount.

The same is true for states, and Nevada is no different. The federal government guarantees the right of states to tax their citizens. However, not all states tax their citizens in the same way. Nevada, along with a handful of other states like Texas and Arizona, is somewhat unique in its decision to not levy and income tax. That means that when you look over your paystub every month, you’ll see a portion taken out for federal taxes, but not state taxes.

However, Nevada does still impose taxes on other areas. Below, we’ll cover Nevada’s taxes in detail so you have a better idea about what you can expect to pay.

Personal income tax is a tax that is assessed on your monthly (or weekly) paychecks. Your paystub should list the amount that has been taken out due to federal income tax, your retirement savings, your health plan, or Social Security.

In addition to these items, most states — like nearby California and Oregon — impose their own state income tax on top of the federal income tax. Nevada, however, is not among these states. There is no additional income tax levied by the state. Remember, you’ll still be responsible for paying federal income taxes. If you need extra help putting together information for your federal tax returns, reach out to a Community Tax representative.

Capital gains taxes are taxes imposed on profits made by investing in the stock market, selling property, and other forms of income gained through investment. The federal government imposes a tax on capital gains — 0% on gains under around $40,000, up to 20% on gains above around $420,000.

The state of Nevada, however, does not impose a capital gains tax on its residents. That means that the top federal rate on capital gains is the top rate that an investor will pay in Nevada. This contrasts with many other states, where, in California for instance, the combined top rate can be as high as 33%.

While this means you won’t be taxed on investments you made through property, you’ll still be taxed on the assessed value of the property itself. We’ll cover Nevada property tax rates in a section further down.

Sales taxes are state - or county-imposed taxes on transactions that happen within the state. The federal government does not not impose its own sales tax, but most states in the Union do. States often have a baseline sales tax onto which counties, cities and towns can add on their own additional sales tax.

In the state of Nevada, the base state sales tax rate is 2%. However, this rate increases significantly depending on the county in which you do business. Clark county, which contains the city of Las Vegas and is by far Nevada’s most populous, has a sales tax rate of 8.25%. And Washoe County, which includes Reno and borders Lake Tahoe, has a sales tax rate of 8.265%.

In effect, the lowest sales tax rates in Nevada are found in Esmerelda, Eureka, Humboldt, and Mineral counties. These counties all impose a sales tax rate of 6.85%.

This is a bit higher than neighboring states, like Arizona’s 5.4% sales tax and Colorado’s low 2.9% tax. However, as Nevadans are not subject to income tax, their overall tax burden is not unduly large.

Like many states, Nevada imposes a series of excise taxes. Excise taxes, in some cases known as sin taxes, are levied on products that would be harmful if overused. These include products that might harm public health or have adverse environmental effects. So, excise taxes are typically are applied to alcohol, tobacco, marijuana (in states where it’s legal), as well as sex work and gasoline.

Nevada imposes a tax on liquor, wine, and beer based on the percentage of alcohol content in each. According to the Nevada Legislature, these are the rates:

The state of Nevada levies a tax on the sale of tobacco products. It’s important to note that cigarettes and other tobacco products are taxed at different rates.

• Cigarettes: $1.80 per pack of 20 cigarettes
• Other tobacco products: 30% of the wholesale price of the product

Marijuana has been legal for recreational use in Nevada since 2017, after a ballot measure voted in favor of its legalization in 2016. If you purchase marijuana in Nevada, you’ll be charged at whatever the local retail sales tax rate is in the county of purchase.

However, if you happen to sell marijuana in Nevada, there is a 10% tax on retail sale applied to the vendor. You can expect to pay 15% of its wholesale fair market value in taxes if you are planning on cultivating cannabis in the Silver State. Note that, depending on the retailer, these taxes may effectively be at least partially passed on to consumers in the form of higher retail prices for marijuana.

Nevada imposes a gasoline tax to aid in the upkeep of roads and highways. The state-mandated rate is 23 cents per gallon, but individual counties can vote to increase this rate to aid in their own repairs and regional transportation funding.

The same rules apply to diesel fuel, but the mandatory state tax rate is 27 cents per gallon. This applies to other special fuels as well.

Bear in mind that these rates apply in addition to the federally mandated 18.4 cent per gallon tax on gasoline and 24.4 cent per gallon tax on diesel.

Of course, no tax explainer on Nevada would be complete without an overview of the way the state handles gambling in its tax code. As you might expect, Nevada makes a significant amount of tax revenue from gambling: almost $760 million in 2018.

Nevada taxes owners of gambling facilities and gambling machines. The state has three categories of taxable gaming in its tax system. So, if you’re considering opening up a casino or other gambling-related business in Nevada, it’s important to know these rules:

• Non-restricted slot license: 20$ per machine per quarter.
• Restricted slot license: $81 per machine per quarter for 1 to 5 machines; for 6 or more machines, $405 plus $141 per quarter for each machine over 5.
• A flat fee on all games. This rate follows these guidelines:

Note: Annual fees also apply to purveyors of games in addition to the tax rates listed above.

In addition to the taxes levied on gambling providers, winnings are taxed. The state of Nevada has no capital gains tax, as previously mentioned, but the federal government does. Gambling winnings are considered a form of income federally, and so are taxed similarly. However, the way that winnings are taxed depends on the type of game in which they are won.

If you have won money gambling in Nevada but do not live there, your home state may also assess a tax on your winnings. Be sure to check ahead of time so you aren’t caught blindsided by a tax bill at the end of the year. If you do find that managing your gambling winnings’ taxes in addition to regular income and property taxes is too much of a hassle, consider reaching out to a Community Tax preparation professional.

The state of Nevada requires insurance providers to pay a 3.5% tax on the income they make from premiums paid by policyholders. Unfortunately, providers may pass that tax on to policyholders in the form of higher premiums, as there is no law preventing this.

Though previously, Nevada imposed a penalty on individuals who did not purchase health insurance, this penalty was repealed and is no longer in effect as of 2019.

Property taxes are levied on property owners based on the assessed value of the residence, business, or acreage. In Nevada, property taxes are not imposed on a state level, but by individual counties. So, the rate of taxation can vary significantly based both on the rate imposed by the county and the average value of real estate in that county.

For instance, in Esmeralda County, rates paid in property taxes are as low as $590 per year — this is due to the relatively low average value of property in that county more than the low rate of taxation. Rates are highest in Washoe County, which borders California and is situated near Lake Tahoe. There, residents pay an average of $2,220 per year in property taxes.

The median in Nevada, however, is closer to the higher end of the spectrum: $1,749. This is because Nevada’s two largest population centers, Las Vegas and Reno, are situated in counties with higher property tax rates: Clarke and Washoe Counties, respectively.

Check out some more quick facts about Nevada’s property taxes:

• Due to Nevada’s lack of income tax, property tax and sales tax will likely account for the majority of an individual’s state-owed tax burden on a given year.
• The average Nevadan pays 0.921% of their assessed home value in taxes, but this varies significantly depending on whether the property is in an urban center or more rural county.
• Rates in Nevada are lower than the national average rate of 1.211% of assessed home value.
• Property taxes are levied by counties, not by the state, resulting in a lot of variation.

Nevada publicly publishes a guide to its tax structure, including detailed information on its application and the way that values are assessed. It is available online through the state’s tax administration.

In most states, property taxes are assessed based on their fair market value: the value at which they would sell at a fair price if put up for sale that year. Property taxes are then based on that value. A tax appraiser may come to your neighborhood every few years and assess property values to determine the way that they will be taxed in the coming years.

Inheritance and estate taxes are levied on money or assets that are passed to next of kin upon death. However, the state of Nevada imposes neither estate nor inheritance taxes on its residents. You can rest assured that your family or other inheritors will receive  the money and assets you left them unencumbered by any state taxes.

However, depending on the value of the estate, be aware that federal estate tax rules may apply. Above certain amounts (as of 2019, $11.4 million), the federal government can levy a tax on your estate. In order to avoid an audit or any costly fines or penalties, the forms associated with estate taxes must be filed.

It’s always a good idea to plan with a tax expert when planning an estate. That way, you ensure that you are able to pass on as much as you can to your loved ones.

As previously stated, the state of Nevada does not impose an income tax on its residents. In most states, and federally, tax credits are available as a way to reduce the taxpayers’ income tax burden. Because Nevada does not levy this tax, it does not offer the usual sorts of tax credits other states with an income tax might.

According to Tax Credits for Workers and Families, Nevada does not offer its own state-level version of the Federal Earned Income Tax Credit (EITC), a tax benefit for families with lower incomes that many states also implement. The federal version is still available in Nevada.

Nevada does offer tax credits for businesses that operate within the state, though, so it can be an attractive place for some businesses to set up shop for this reason.

If you and your family are hoping to lighten your tax load, federal tax deductions and credits are particularly helpful — especially in Nevada, where the vast majority of your tax burden is due to the federal government. Information about federal tax credits and deductions can be found online. The IRS offers a number of credits and deductions for the many circumstances where a family or individual could use extra help.

If you want to make the most out of your possible tax credits, deductions, and exemptions, contact a Community Tax professional. We help you find everywhere that you can save on your state and federal taxes.

Because the state of Nevada does not impose an income tax on its residents, it does not offer the standard sorts of deductions and exemptions that other states might. (Often, state income tax deductions and exemptions are similar to federal deductions and exemptions.)

As explained above, however, Nevada does still impose a property tax. So, the state offers exemptions to certain qualifying groups.

• Property of surviving spouses
• Property of blind persons
• Veterans who own property
• Charitable organizations

All exemptions are only partial in nature, and require that the persons claiming them are residents of Nevada.

As discussed, Nevada imposes no income taxes on its residents. That means that, in addition to not having to pay the state anything out of your paycheck, you are also not required to fill out income tax returns for the state! That’s a pretty huge perk.

However, once April 15th rolls around, it’s still important to be aware of the state taxes you are responsible for: in Nevada, that means property taxes. Be sure that you keep all necessary information on file and accessible:

• Information on your disability status.
• Information on your or your spouse’s veteran status.
• Information on the assessed value of your home or other properties you may own in Nevada.
• Don’t forget about federal income taxes; Nevada’s lack of income taxes may cause you to forget about filing federal taxes. Make sure you have your IRS W-2 Forms sent to you by your employer.

Remember: it’s okay to ask for help. Filing your state and federal taxes can be stressful, and if you’re dealing with multiple forms and worksheets for possible exemptions, they’re a real headache. If you need a hand around tax time, feel free to contact a tax expert for help walking you through everything you need to know to save as much as you can and avoid a painful audit.

When it comes time to pay your taxes in Nevada, the easiest way is to pay online through Nevadatax.nv.gov.

• Detailed instructions on how to pay taxes are available on their website.
• Property taxes are paid to your local county authority, not the state.
• Taxpayers may pay with a credit card, debit card, or check. (Be aware that some small fees may apply to card payments.)

Payment plans are also available through the Nevada Department of Taxation. Payment periods must not exceed 12 months, and the taxpayer must agree to pay within the allotted time, make on time payments, and agree to comply with all applicable laws and regulations.

Paying taxes can be a headache — especially filing state taxes after finishing your federal returns. If you feel like you’re in over your head and need help making sure your taxes are squared away so you won’t risk an audit, reach out to a Community Tax professional tax preparer. Our team is ready to help you make the most on your returns and help you avoid any penalties or fines that could result from an audit.

Now that we’ve gone through the difficult details on what you need to know about Nevada’s state taxes, let’s take a look at some interesting fun facts about taxes in the state!

Remember, Nevada state taxes are only half of the story. Federal taxes must also be filed every year. If you need help preparing your federal or state income taxes, with navigating difficult to understand regulations, worksheets, and tax handbooks, or understanding the difference between state and federal taxes, we are here to help. Feel free to contact one of our tax preparation specialists for all your state and federal tax filing needs.

This information is accurate as of 2019. Special circumstances that can affect your tax return may apply.