Nevada runs on sales tax.
In Nevada, 58% of tax revenue came from general sales tax, 24.4% from selective sales tax, 6.7% from licenses, 3.7% from property tax, 1.3% from severance and 7.9% from other tax sources. That breakdown comes from Pew Charitable Trusts, which this month published a comparison of the sources of each state’s tax revenue using fiscal year 2020 data.
Nationally, personal income tax makes up the largest share of overall state revenue, making up 36.5% of tax revenue for all states. That percentage is notably higher in the 41 states that impose them. (Oregon, which notably does not have a sales tax, leads the nation in its reliance on personal income tax; 67.6% of its tax revenue comes from personal income tax.)
The Nevada Constitution prohibits levying of personal income tax.
General sales tax is the second biggest pot of money for states, making up 32.2% of state revenue on average.
Nevada is ranked fifth in reliance on general sales tax. General sales tax made up 58% of tax revenue in 2019.
Only Texas, Florida, South Dakota and Washington — all states that similarly do not have a personal income tax — were more reliant on general sales tax. In Texas, 63% of state revenue came from general sales tax. In Florida, 62.5% did.
Nevada ranked eighth on its reliance on selective sales tax, which includes the live entertainment tax and insurance premiums tax. Selective sales tax made up 22.4% of Nevada’s tax revenue in fiscal year 2020.
Only 3.7% of Nevada’s overall tax revenue stems from property tax. That’s above the national average of 1.8%.
Nevada is one of five states that does not have a corporate income tax. (Ohio, Texas, Washington and Wyoming are the other four.) Corporate income tax ranged from 0.6% of a state’s revenue (in Hawaii) to 27.3% in New Hampshire.
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