Continuing our series on taxes in Nevada, our Daily Snippet: Nevada residents pay 8.2% of their incomes to state and local taxes, one of the lowest rates in the nation.
Do Nevadans pay a lot in taxes? There are a few different measures people use to determine the answer. To be fair, one should include both state and local taxes paid (not just state). In addition, taxes paid on a per capita basis do not account for variant income levels, and really don’t tell you anything about how those taxes measure up as a burden on individuals. For example, using the measurement “per capita taxes collected” wouldn’t tell you anything about how much of the taxes collected are from tourists (like in Nevada!) If you have a smaller state, like Alaska, you may pay the highest per capita taxes in the nation, but have the lowest tax burden (as a tax rate). Use caution!
Nevadans pay an average of 8.2% of their incomes to taxes, according to data collected for 2010 by the Tax Foundation. That is far below the national average and among the lowest rates paid anywhere in the nation. See our Nevada tax burden infographic below.