The Tax Foundation

Tax Data

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 26 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 2008, Nevada taxpayers had to work until April 26 to pay their total tax bill, ranking it 11th in the nation. This is three days after national Tax Freedom Day (April 23). The Tax Freedom Days of neighboring states were: California, April 30 (ranked 4th); Oregon, April 16 (ranked 32nd); Idaho, April 20 (ranked 19th); Utah, April 21 (ranked 17th) and Arizona, April 20 (ranked 20th).

Tax Freedom Day has been projected using the most up-to-date economic and budget projections from official government agencies. However, Tax Foundation estimates of average state and local tax rates for 2008 will not be released until later this spring as we await more up-to-date data from various government agencies.
Full study of Tax Freedom Day, nationwide and in each state

Nevada's State/Local Tax Burden Among Nation's Lowest in 2007
During the past two decades Nevada's state and local tax burden has consistently ranked among the nation's lowest. Estimated at 10.1% of income, Nevada's state/local tax burden percentage ranks 36th highest nationally, below the national average of 11.0%. Nevadans pay $4,127 per-capita for state and local taxes, and per capita state income is $40,916.
Nevada's State-Local Tax Burden, 1970-Present

Nevada's 2007 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 ranked as follows: California (47th), Oregon (10th), Idaho (31st), Utah (17th) and Arizona (25th).
50-State Comparison of Business Tax Climates (data only)
2008 State Business Tax Climate Index, Fifth 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, 2000-2008
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006

Nevada's Sales Tax Collections among the Highest in the Nation
Nevada levies a 6.5% general sales or use tax on consumers, which is above the national median of 5.4%. State and local governments combined collect approximately $2,214 per capita in general sales taxes, which ranks 2nd highest nationally. Nevada's gasoline tax stands at 32.5 cents per gallon, which ranks 10th 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 31st 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 and Excise Tax Rates
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005

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 $2,014,826,000 in property taxes in fiscal year 2004, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Nevada collected $132,468,000 in property taxes during FY 2004, making its combined state/local property taxes $2,147,294,000. That brings its per capita collection to $920, ranking 30th 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

Tax Data from The Tax Foundation