Research Areas
Nevada
The Facts on Nevada's Tax Climate
Here are some basic facts on Nevada's tax system and how it compares to other states:
Tax Freedom Day Arrives on April 2 in Nevada
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2011, Nevada taxpayers work until April 2 to pay their total tax bill, ranking it 40th in the nation. This is ten days before national Tax Freedom Day (April 12). The Tax Freedom Days of neighboring states were: California, April 16 (ranked 6th); Oregon, April 8 (ranked 23rd); Idaho, April 3 (ranked 36th); Utah, April 10 (ranked 19th) and Arizona, April 2 (ranked 39th).
Full study of Tax Freedom Day, nationwide and in each state
Nevada's State and Local Tax Burden Second-Lowest in Nation
Throughout the past three decades, Nevada's state and local tax burden percentage has consistently ranked among the nation's lowest, currently estimated at 7.5% of income (49th nationally), on par with the national average. Compared to the 1977 data, Nevada had a rate of 8.3% (45th nationally), dropping 0.8% overall. Currently Nevadan's pay $3,311 per capita in state and local taxes.
Nevada's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Nevada's 2012 Business Tax Climate Ranks 3rd
Nevada ranks 3rd in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states rank as follows: California (48th), Oregon (13th), Idaho (21st), Utah (10th) and Arizona (27th).
50-State Comparison of Business Tax Climates (data only)
2012 State Business Tax Climate Index, Ninth Edition (full study)
Nevada's Individual and Corporate Income Tax System
Nevada assesses no corporate or individual income tax, joining Texas, Washington, South Dakota and Wyoming as the only states to levy neither type of income tax.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household
50-State Table of State Corporate Income Tax Collections Per Capita
Nevada's Sales and Excise Taxes
Nevada levies a 6.85% general sales or use tax on consumers, which is above the national median of 5.85%. In 2007 combined state and local general and selective sales tax collections were $2,402 per person, which ranks 3rd highest nationally. Nevada's gasoline tax stands at 33.1 cents per gallon, which ranks 8th highest nationally. Additionally, Nevada's counties are permitted to levy "local option" gasoline taxes. Nevada's cigarette tax stands at 80 cents per pack of twenty and ranks 33rd highest nationally. The sales tax was adopted in 1955, the gasoline tax in 1923 and the cigarette tax in 1947.
50-state table of sales, cigarette, gas, beer, wine, and spirits tax rates.
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Nevada Property Taxes: Comparatively Modest
Nevada is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Nevada's localities collected $957.13 per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Nevada collected $66.73 per capita during FY 2006, making its combined state/local property taxes $1,023.85, ranking 29th highest nationally.
State property tax collections per capita by state
Federal Tax Burdens and Expenditures: Nevada is a Donor State
Nevada taxpayers receive less federal funding per dollar of federal taxes paid compared to the average state. Per dollar of federal tax collected in 2005, Nevada citizens received approximately $0.65 in the way of federal spending. This ranks the state 49th highest nationally and represents a decrease from 1995, when Nevada received $0.73 per dollar of taxes in federal spending (ranked 48th nationally). Neighboring states and the amount of federal spending per dollar of federal taxes collected were as follows: California ($0.78), Oregon ($0.93), Idaho ($1.21), Utah ($1.07) and Arizona ($1.19).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state
