Nevada is known as “The Silver State” for its rich silver deposits as well as its low taxes. In fact, in terms of the tax burden, Nevada is one of the lowest-taxed states in the nation. That’s because they have no income tax, no corporate income tax, and no inheritance tax. In addition, the average sales tax rate of 6.85%, and very low property taxes are among the lowest in the United States.
All of these factors contribute to Nevada’s appeal among both individuals and businesses. Individuals appreciate Nevada’s lack of income tax, allowing them to hang onto more of their hard-earned money. And businesses appreciate the fact that corporate income taxes are so low.
But it’s not just Nevada’s lack of taxes that is driving people and businesses to the state. Employment opportunities in the technology, services, health care, and tourist industries are also contributing to Nevada’s popularity.
Overall, Nevada’s low tax burden combined with the state’s strong economy makes it an attractive place for both individuals and businesses. If you’re looking for a great place to live or work, Nevada should definitely be on your shortlist.
THE 10 STATES WITH THE LOWEST TAX BURDEN
|
State
|
Grade
|
Tax as % of Income
|
|
|---|---|---|---|
|
1. |
Wyoming |
A |
3.9% |
|
2. |
Nevada |
A |
4.6% |
|
3. |
Tennessee |
A |
5.5% |
|
4. |
Alaska |
A |
5.5% |
|
5. |
Florida |
A |
5.6% |
|
6. |
Washington |
B |
6.5% |
|
7. |
North Dakota |
B |
6.7% |
|
8. |
Arizona |
B |
6.8% |
|
9. |
South Dakota |
B |
7.2% |
|
10. |
Colorado |
B |
7.4% |
THE 10 STATES WITH THE HIGHEST TAX BURDEN
|
State
|
Grade
|
Tax as % of Income
|
|
|---|---|---|---|
|
1. |
Illinois |
F |
16.9% |
|
2. |
Connecticut |
F |
15.3% |
|
3. |
New Jersey |
F |
14.8% |
|
4. |
New Hampshire |
F |
14.3% |
|
5. |
New York |
D |
14.1% |
|
6. |
Iowa |
D |
13.8% |
|
7. |
Vermont |
D |
12.8% |
|
8. |
Wisconsin |
D |
12.8% |
|
9. |
Nebraska |
D |
12.7% |
|
10. |
Michigan |
D |
12.5% |
The data points presented are defined as follows:
- Grade: Based on the size of the tax payment, with a grade of “A” reflecting a state with the lowest tax payment and a grade of “F” reflecting a state with the highest tax payment.
- Estimated Taxes: Tax amount due for married joint-filers with one independent, a gross income of $87,432, and a home valued at $374,665. Considers federal income tax, local income tax, state income liability, state/local sales tax, and state property tax.
- Tax as % of Income: Presents total taxes paid as a percentage of income.
- Change in Population 2022: Percentage change in a state’s population from 2021 to 2022.
