Nevada is one of nine states with no state income tax. If you work in Nevada, you won't see any state income tax withholding on your paystub.
No State Income Tax
Nevada does not impose a personal income tax on wages, salaries, or other earned income. This means:
- No state income tax line on your paystub
- No state tax return to file for wages
- More take-home pay compared to states with income tax
Nevada's constitution prohibits a personal income tax, making it a permanent tax advantage for residents.
What You Will See on Your Paystub
While Nevada has no state income tax, your paystub will still show federal deductions:
| Deduction | Rate | Notes |
|---|---|---|
| Federal Income Tax | Varies | Based on W-4 and income |
| Social Security | 6.2% | Up to $181,200 wage base |
| Medicare | 1.45% | No wage limit |
| State Income Tax | 0% | Not applicable in Nevada |
Other Nevada Taxes
Nevada generates revenue through other taxes instead of income tax:
- Sales Tax: 6.85% state rate, plus local taxes up to 1.53% (8.38% max in Clark County/Las Vegas)
- Gaming Tax: Revenue from casinos and gambling
- Commerce Tax: Applies to businesses with gross revenue over $4 million
- Modified Business Tax: Payroll tax paid by employers
Modified Business Tax
While employees don't pay state income tax, employers pay a Modified Business Tax:
- General businesses: 1.17% of wages over $50,000 per quarter
- Financial institutions: 2% of wages over $50,000 per quarter
- Mining: Subject to additional net proceeds tax
The Modified Business Tax is paid by employers, not employees—it won't appear as a deduction on your paystub.
Las Vegas & Gaming Industry
Special considerations for gaming industry workers:
- Tips are taxable income for federal purposes
- Employers must report allocated tips
- Large tip earners should ensure proper federal withholding
- No state tax on tips or wages
Working Remotely
Nevada's lack of income tax makes it attractive for remote workers:
- You won't owe Nevada income tax (there isn't one)
- You may still owe tax to the state where your employer is located
- California residents working remotely for Nevada employers still owe California tax
Many California residents work remotely for Nevada-based companies. You owe tax based on where you live, not where your employer is located.
Nevada vs. Neighboring States
| State | Income Tax | Sales Tax |
|---|---|---|
| Nevada | None | 6.85% - 8.38% |
| California | 1% - 13.3% | 7.25% - 10.75% |
| Arizona | 2.5% | 5.6% - 11.2% |
| Utah | 4.65% | 6.1% - 9.05% |
Comparing Take-Home Pay
Here's how a $75,000 annual salary in Nevada compares to other states:
| State | State Tax Rate | Annual State Tax | Monthly Difference |
|---|---|---|---|
| Nevada | 0% | $0 | — |
| California | ~6% | ~$3,200 | -$267 |
| Arizona | 2.5% | ~$1,875 | -$156 |