Tax policy in Nevada

in Nevada

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Tax policy in Nevada

Tax rates in 2017

Personal income tax: None

State sales tax: 6.85%

Corporate income tax: None

Tax revenues in 2016

Total tax collections: $8.03 billion

Tax collections per capita: $2,730

Total state expenditures • State debt • Nevada state budget and finances

Nevada generates the bulk of its tax revenue by levying a general sales tax and select sales taxes (otherwise known as excise taxes). The state derives its constitutional authority to tax from Article 10 of the state constitution.^[1][2]

Tax policy can vary from state to state. States levy taxes to help fund the variety of services provided by state governments. Tax collections comprise approximately 40 percent of the states' total revenues. The rest comes from non-tax sources, such as intergovernmental aid (e.g., federal funds), lottery revenues and fees. The primary types of taxes levied by state governments include personal income tax, general sales tax, excise (or special sales) taxes and corporate income tax.^[3]

Tax rates

Personal income tax

See also: Personal income tax

Nevada did not utilize a personal income tax in 2017.^[4]

The table below summarizes personal income tax rates for Nevada and neighboring states in 2017.^[4]

Personal exemptions

States that collect a personal income tax allow individuals to claim personal exemptions on income taxes each year. The personal exemption indicates that only a person's income above a certain level is subject to taxation. ^[5]

Exemptions work by reducing the amount of an individual's taxable income. Both state and federal taxes allow exemptions. The state exemptions for Nevada and its neighboring states as reported by the Tax Policy Center are reported in the chart below.^[6]

Capital gains tax

See also: Capital gains tax

A capital gains tax is a tax levied on the profit gleaned from the sale of a capital asset. Examples of capital assets include stocks, businesses, land parcels, homes, personal items and more. Capital gains are taxable at both the federal and state levels. While the federal government taxes capital gains at a lower rate than regular personal income, states usually tax capital gains at the same rates as regular income. ^[7][8][9]

The table below summarizes uppermost capital gains tax rates for Nevada and neighboring states in 2015.

Sales tax

See also: Sales tax

Almost all states employ a statewide sales tax, which ranges from 2.9 percent in Colorado to 7.25 percent in California. Additionally, many states allow the levying of local sales taxes, which are then added to the state's tax.

Nevada's state sales tax was 6.85% percent in 2017. The average local tax was about 1.13% percent, meaning that the average combined sales tax was about 7.98% percent. The table below displays the state tax rates, average local tax rates, and average combined tax rates for Nevada and its neighboring states.^[10]

The table below summarizes sales tax rates for Nevada and neighboring states in 2017 as well as the state's policy with respect to types of items commonly exempted from sales tax (i.e., food, prescription drugs and nonprescription drugs).^[11]

Excise taxes

See also: Excise taxes

Excise taxes, also known as selective sales or differential commodity taxes, are levied for the sales of specific goods or services. Excise taxes are considered indirect taxes because they are not charged directly to individuals. In most cases, the excise tax is paid by the producer or seller of an item. The cost of the tax is then included in the sale price of the item and passed on to the consumer. The tables below provide excise tax rates for motor fuel, alcohol and cigarettes in Nevada and neighboring states.^{[12][13][14][15]}

Corporate income tax

See also: Corporate income tax

Nevadadoes not levy a corporate income tax. The table below compares the corporate income tax rates of some of its neighboring states.^[16][17]

Property tax

See also: Property tax

Most often, property tax applies to real estate, although some states levy property taxes on other types of personal property, such as automobiles. Generally speaking, an individual's property tax liability is determined by the tax rate and the tax base, which is "determined by both the assessed value of the property and ... the share of the assessed value that is subject to tax." To learn more about property taxes, including tabulation methods, see this page. Property tax rates can vary substantially from locality to locality within a state.^{[18][19][20] [18][19]}

The table below provides the mean amount of property taxes paid in 2012, as well as property tax as a mean percentage of home value for 2014, in Nevada and neighboring states.^[18]

The table below lists per capita state and local property tax collections for Nevada and neighboring states for fiscal year 2013.^[21]

Estate and inheritance taxes

See also: Estate and inheritance taxes

Estate and inheritance taxes are levied on the property of deceased individuals (decedents). Generally speaking, an estate tax is applied to the value of a decedent's property and is paid from the estate before distribution to any heirs. By contrast, an inheritance tax is paid by the heir or heirs of a decedent's assets.^[22][23][24]

Nevada does not levy an estate tax, although residents are liable for the federal estate tax. The table below summarizes the estate tax rates for Nevada and neighboring states in 2016.^[24]

Tax revenues

See also: Nevada state budget and finances

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.^[25]

The table below lists 2016 tax collections by source as percentages of total collections. About 79.1 percent of Nevada's total state tax collections came from sales taxes and gross receipts.^[25]

Tax ballot measures

Voting on taxes
Ballot measures
By state
By year
Not on ballot
Local City taxes County taxes School taxes Property taxes Sales taxes Income taxes Other taxes

See also: Taxes on the ballot and List of Nevada ballot measures

Ballotpedia has tracked the following ballot measures relating to taxes in Nevada.

1. Nevada Legislative Tax Exemptions Amendment, Question 3 (2008)
2. Nevada Sales and Use Tax Amendment, Question 4 (2008)
3. Nevada Sales and Use Tax Revision, Question 8 (2004)
4. Nevada Sales and Use Tax, Question 8 (2006)
5. Nevada Sales and Use Tax Amendment, Question 3 (2010)
6. Nevada Legislative Supermajority for Tax Increases, Question 11 (1996)
7. Nevada Sales and Use Tax Medical Supply Exemption, Question 13 (1996)
8. Nevada Sales and Use Tax Nonprofit Exemption, Question 14 (1996)
9. Nevada Sales and Use Tax Aircraft Exemption, Question 15 (1996)
10. Nevada Legislature Votes Twice for Tax Increases, Question 16 (1996)
11. Nevada Sales and Use Tax Farm Equipment Exemption, Question 3 (2002)
12. Nevada Sales and Use Tax Professional Racing Equipment Exemption, Question 4 (2002)
13. Nevada Property Tax Exemption for Water Conservation, Question 6 (1998)
14. Nevada Government Resale Sales and Use Tax, Question 7 (1998)
15. Nevada State Personal Income Tax (1988)
16. Nevada Legislative Supermajority for Tax Increases, Question 11 (1994)
17. Nevada Single Family Property Tax Reduction, Question 8 (2002)
18. Nevada Sales and Use Tax Horse Exemption, Question 4 (1994)
19. Nevada Hazardous Operation Relocation for Property Tax Reduction, Question 6 (1994)
20. Nevada Sales and Use Tax Government and Charity Exemption, Question 7 (1994)
21. Nevada Sales and Use Tax Textbook Exemption, Question 3 (1990)
22. Nevada Sales and Use Tax Metal Bars and Medallions Exemption, Question 4 (1990)
23. Nevada Corporate Tax for Education, Question 6 (1990)
24. Nevada Personal Income Tax Prohibition, Question 9 (1990)
25. Nevada Margin Tax for Public Schools Initiative, Question 3 (2014)
26. Nevada Mining Tax Cap Amendment, Question 2 (2014)
27. Nevada Taxation of Minerals, Question 1 (1989)
28. Nevada Amendment to the Sales and Use Tax Act, Question 5 (1988)
29. Nevada Proposal to Amend the Sales and Use Tax Act, Question 6 (1988)
30. Nevada Tax Exemption of Building Materials, Question 7 (1988)
31. Nevada Tax Exemption of Gold, Silver and Platinum Bars, Question 8 (1988)
32. Nevada Tax Exemption of Bank Stocks, Question 1 (1986)
33. Nevada Taxation of Contractor Materials, Question 3 (1986)
34. Nevada Tax Exemption of Aircraft Components, Question 4 (1986)
35. Nevada Federal Estate Tax, Question 5 (1986)
36. Nevada Tax of Contractors, Question 6 (1986)
37. Nevada Tax Exemption for People with Disabilities, Question 8 (1986)
38. Nevada Tax Exemption for Food for Human Consumption, Question 1 (1984)
39. Nevada Taxation of Mines, Question 2 (1984)
40. Nevada Permit Deposit of Public Money, Question 4 (1984)
41. Nevada Tax of Used Cars, Question 8 (1984)
42. Nevada Tax on Manufactured Homes , Question 10 (1984)
43. Nevada Tax of Personal Property by a Governmental Contractor, Question 2 (1983)
44. Nevada Exemption of Property Taxes, Question 1 (1982)
45. Nevada Estate Tax, Question 6 (1982)
46. Nevada Tax on Materials used in Making a Mobile Home, Question 7 (1982)
47. Nevada Tax Exemption of Household Goods and Furniture, Question 8 (1982)
48. Nevada Tax Exemption of Food for Human Consumption, Question 9 (1982)
49. Nevada Initiative to Limit the General Tax on Real Property, Question 6 (1980)
50. Nevada Tax Exemption of Household Goods and Furniture, Question 8 (1980)
51. Nevada Tax Exemption of Food for Human Consumption, Question 9 (1980)
52. Nevada Sales and Use Tax Act of 1955, Question 1 (1979)
53. Nevada Property Tax Exemption for Business Inventories, Question 4 (1978)
54. Nevada Initiative to Limit the General Tax on Real Property, Question 6 (1978)
55. Nevada Initiative on Government Taxes and Fees, Question 12 (1984)
56. Nevada Personal Income Tax, Question 9 (1988)
57. Nevada Taxation on Agricultural and Open-Space Real Property, Question 3 (1974)
58. Nevada Sales and Use Tax Penalty, Question 4 (1974)
59. Nevada Tax Exemption of Prescription Medicines, Question 8 (1970)
60. Nevada Establishment of the Carson City and County of Ormsby Municipal Government, Question 3 (1968)
61. Nevada Repeal of the Poll Tax, Question 1 (1966)
62. Nevada Measure to Increase the Sales and Use Tax, Question 1 (1963)
63. Nevada Motor Vehicle Tax, Question 1 (1962)
64. Nevada Tax Exemption for Personal Property in Transit, Question 1 (1960)
65. Nevada Measure to Retain the Sales and Use Tax Act, Question 8 (1956)
66. Nevada Amendment on the Tax Exemption of Financial Property, Question 1 (1942)
67. Nevada Question 4, Medical Equipment Sales Tax Exemption Amendment (2018)
68. Nevada Medical Equipment Sales Tax Exemption, Question 4 (2016)
69. Nevada Question 5, Sales Tax Exemption for Diapers Measure (2024)
70. Nevada Hotel Tax for Education Funding Initiative (2008)

Recent news

The link below is to the most recent stories in a Google news search for the terms Nevada taxes. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

• Nevada
• Nevada state budget and finances
• Personal income tax
• Sales tax
• Corporate income tax
• Property tax

External links

• Tax Policy Center
• Federation of Tax Administrators
• Tax Foundation

Footnotes

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