Index

Nevada No State Income Tax

Summary

Nevada is a true 'tax haven' state. It has no personal income tax, no corporate income tax, and no franchise tax.

Rights & Rules

  • 01.
    Individuals pay $0 in state income tax on their wages, salaries, and investments.
  • 02.
    Unlike Texas or Florida, Nevada also does NOT levy a corporate income tax or a corporate franchise tax on businesses.
  • 03.
    To fund the government, Nevada relies incredibly heavily on a massive tourism economy, imposing high taxes on hotel rooms (transient lodging tax), casino gaming revenues, and a high state sales tax.

Penalties

  • 01.
    While there is no corporate income tax, businesses with gross revenue over $4 million must pay a 'Commerce Tax,' and all employers must pay a Modified Business Tax based on gross receipts if they pass certain thresholds.

Verified Citations

Nevada Constitution Article 10, Section 1

Source
"No income tax shall be levied upon the wages or personal income of natural persons. Notwithstanding the foregoing provision, and except as otherwise provided in subsection 1 of this section, taxes may be levied upon the income or revenue of any business in whatever form it may be conducted..."