How Nevada’s tax structure compares to other states

By: - May 21, 2021 12:34 pm
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In Nevada, 58% of tax revenue came from general sales tax. (Photo by energepic.com from Pexels)

Nevada runs on sales tax.

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In Nevada, 58% of tax revenue came from general sales tax. (Photo by energepic.com from Pexels)

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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April Corbin Girnus
April Corbin Girnus

April Corbin Girnus is an award-winning journalist with a decade of media experience. She has been a beat writer at Las Vegas Sun, a staff writer at LEO Weekly, web editor of Las Vegas Weekly and a blogger documenting North American bike share systems’ efforts to increase ridership in underserved communities. An occasional adjunct journalism professor, April steadfastly rejects the notion that journalism is a worthless major. Amid the Great Recession, she earned a B.A. in journalism from the University of Nevada Las Vegas, where she served as editor-in-chief of the student newspaper. She later earned an M.A. in media studies and a graduate certificate in media management from The New School for Public Engagement. A stickler about municipal boundary lines, April enjoys teaching people about unincorporated Clark County. She grew up in Sunrise Manor and currently resides in Paradise with her husband, two children and two mutts.