How the Nevada Paycheck Calculator Works

This calculator breaks down your Nevada paycheck by accounting for federal income tax and FICA taxes only. Nevada is one of nine states with no state income tax, making paycheck calculation simpler than most states. You keep more of your paycheck, but Nevada compensates through sales tax (6.85-8.375%) and gaming-related revenues.

The calculation follows this formula:

Here’s what happens. Your gross pay gets reduced first by pre-tax deductions (401(k), health insurance, HSA). Federal income tax applies using 2025 IRS brackets based on your filing status and W-4 allowances. There is no Nevada state income tax withheld. Social Security takes 6.2% of gross pay up to $176,100. Medicare takes 1.45% of all wages, plus 0.9% additional on high earners. What’s left is your net pay.

Understanding Nevada’s Zero Income Tax

No State Income Tax Means Higher Take-Home

Nevada has no state income tax on wages. This means you keep 5-10% more of your paycheck compared to states like California, Oregon, or Arizona. A $75,000 salary in Nevada nets roughly $57,000 after federal and FICA taxes. The same salary in California nets around $52,000 after state tax. That’s $5,000 more annually just from avoiding state income tax.

This makes Nevada attractive for workers in hospitality, gaming, tech, and healthcare. Las Vegas and Reno offer competitive wages with zero state tax, maximizing take-home pay.

Sales Tax and Gaming Revenue Offset

Nevada funds government through sales tax (6.85% state, plus local up to 8.375% total) and gaming taxes. While you avoid income tax, you pay sales tax on most purchases. If you spend $40,000 annually on taxable goods, you pay $2,700-3,350 in sales tax. Groceries are mostly taxable in Nevada (unlike some states).

Whether this works in your favor depends on spending versus saving. High earners who save aggressively benefit enormously (keep high income, spend less on taxable goods). Lower earners who spend most income might not see as much advantage.

Modified Business Tax for Employers

Nevada doesn’t tax individual income, but employers pay Modified Business Tax (MBT) on employee wages (currently 1.475% for most industries, higher for financial services). This doesn’t come out of your paycheck directly, but it’s part of the total employment cost. Most W-2 employees never see or pay this tax.

Real Nevada Paycheck Examples

Annual Salary	Gross Biweekly	Federal Tax	FICA	Net Biweekly
$40,000	$1,538.46	$115.00	$117.69	$1,305.77
$60,000	$2,307.69	$230.00	$176.54	$1,901.15
$80,000	$3,076.92	$380.00	$235.38	$2,461.54
$100,000	$3,846.15	$530.00	$294.23	$3,021.92
$150,000	$5,769.23	$980.00	$441.35	$4,347.88

Note: Examples assume single filing status, 1 federal allowance, no pre-tax deductions. Actual amounts vary.

Nevada vs. Other States Comparison

State	State Income Tax	Sales Tax	$100k Net Pay
Nevada	0%	6.85-8.375%	$76,000
California	~9.3%	7.25-10.75%	$69,000
Arizona	~4.5%	5.6-11.2%	$73,000
Utah	4.65% flat	6.1-8.35%	$73,000
Texas	0%	6.25-8.25%	$76,000

Nevada and Texas tie for highest take-home pay in this comparison. California costs you $7,000 annually in state tax alone. Arizona and Utah offer moderate tax burdens. Nevada’s model (zero income tax, moderate sales tax) works best for high earners who save aggressively.

Edge Cases and Common Questions

What If I Live in Nevada But Work in California?

You pay California income tax on income earned in California, even though you live in Nevada. California withholds state tax from your paycheck. Nevada has no income tax, so you don’t owe NV anything. This is common for South Lake Tahoe residents working on the California side. You pay CA tax but avoid NV sales tax by living in Nevada.

What If I Live in California But Work in Nevada?

Nevada employers don’t withhold state tax (since NV has none). But California taxes all income earned by residents, including wages from Nevada jobs. You need to make estimated tax payments to California or you’ll owe a large tax bill in April. Set aside 8-10% of gross income for CA taxes.

What If I Move to Nevada Mid-Year?

If you move from a state with income tax to Nevada, you pay that state’s tax only on income earned while living there. Once you establish Nevada residency, no more state tax. Update your W-4 with your employer. You might get a refund from your previous state for over-withholding.

What About Gaming Industry Taxes?

Nevada has no special employee taxes for gaming workers. You pay the same federal and FICA taxes as any other worker. Gaming companies pay higher business taxes to the state, but these don’t come from employee paychecks. Tips are taxable income and must be reported.

What If Nevada Passes Income Tax?

Nevada’s constitution requires voter approval for income tax, and the gaming and tourism industries strongly oppose it. Attempts have failed repeatedly. While possible, the political hurdles are significant. Nevada’s economy is built around no income tax attracting residents and tourists.

What If I Have Tips or Commission Income?

Tips and commissions are fully taxable for federal and FICA purposes. Nevada has no state tax, so you only pay federal taxes on tips. Many hospitality workers in Las Vegas earn significant tips, all of which are taxed federally. Make sure your employer withholds enough to cover tips, or make estimated payments.

What If I’m Self-Employed in Nevada?

Self-employed individuals pay both halves of FICA (15.3%) plus federal income tax, but no Nevada state income tax. You might pay Modified Business Tax if your business exceeds certain thresholds. Total tax burden is typically 25-35% for self-employed vs. 35-45% in high-tax states. Nevada is very attractive for freelancers and business owners.

Understanding Gross vs. Net in Nevada

The 24-28% Rule

Expect to lose roughly 24-28% of gross pay to federal and FICA taxes in Nevada. A $70,000 salary nets around $52,000-54,000. This is 5-10% higher net pay than states with income tax. Always budget with net pay, not gross, and remember that sales tax will consume some of that advantage.

Pre-Tax Benefits Are Still Valuable

Even without state income tax, pre-tax deductions save 25-35% in Nevada (federal + FICA). If you’re in the 22% federal bracket, every $1,000 contributed to a 401(k) saves you $220 federal + $76.50 FICA = $296.50 in taxes. Max out 401(k), HSA, and FSA to reduce federal burden.

Should You Work in Nevada?

When It Makes Sense

Nevada is excellent for hospitality, gaming, tech (growing in Reno), and healthcare workers. Las Vegas and Reno offer competitive wages with zero state income tax. A $90,000 salary in Las Vegas nets $6,000-8,000 more annually than the same salary in California. For young professionals and high earners, the math strongly favors Nevada.

Nevada also works well if you work remotely for a California company while living in Nevada. You avoid CA income tax while enjoying Nevada’s lower cost of living.

When It Doesn’t Make Sense

Don’t move to Nevada for a marginal salary increase without accounting for total cost of living. Las Vegas housing costs have increased significantly. A $85,000 salary in Las Vegas might provide similar purchasing power to $75,000 in Phoenix or Salt Lake City after factoring in housing and expenses.

Also consider income volatility. Hospitality and gaming jobs can be seasonal or cyclical. Economic downturns hit Las Vegas hard. Ensure you have emergency savings to weather slow periods.

Frequently Asked Questions

Does Nevada Have Income Tax?

No. Nevada is one of nine states with no state income tax on wages (along with Alaska, Florida, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire). This applies to W-2 wages, self-employment income, and most other personal income.

What’s Nevada’s Sales Tax?

Nevada’s state sales tax is 6.85%, but counties add their own taxes. Total sales tax ranges from 6.85% to 8.375%. Clark County (Las Vegas) is 8.375%, Washoe County (Reno) is 8.265%. Most groceries are taxable in Nevada, unlike some states.

Do I Need to File a Nevada State Tax Return?

No. Nevada has no income tax, so there’s no state tax return for individuals. You only file federal taxes. This saves time and complexity compared to states requiring both federal and state returns.

How Accurate Is This Calculator?

Very accurate for standard W-2 employees using 2025 federal tax tables. Where it might differ: unusual deductions, garnishments, union dues, or employer-specific withholding. Small differences (under $50 per paycheck) are normal. For precise numbers, check your actual paystub.

Will Nevada Ever Get Income Tax?

Unlikely. Nevada’s constitution requires voter approval for income tax, and it has been rejected multiple times. The gaming and tourism industries, which drive Nevada’s economy, strongly oppose income tax. While possible through constitutional amendment, the political and economic barriers are significant.

What’s the Modified Business Tax?

Modified Business Tax (MBT) is paid by employers, not employees. It’s calculated on total wages paid (currently 1.475% for most industries, higher for financial services). This doesn’t come from your paycheck, but it’s part of the cost of employing someone in Nevada.

Maximizing Your Nevada Take-Home Pay

Max Federal Pre-Tax Accounts

Contribute to 401(k) ($23,500 in 2025), HSA ($4,300 single, $8,550 family), and FSA ($3,300). These reduce federal taxable income, saving 22-37% federal plus 7.65% FICA. On a $90,000 salary, maxing a 401(k) saves roughly $7,000 in total federal taxes.

Take Advantage of Zero Income Tax

Nevada’s zero income tax means every raise and bonus is taxed only federally. A $10,000 raise in California costs $930 in state tax. In Nevada, you keep the full amount (minus federal and FICA). Negotiate aggressively knowing you keep more of each dollar.

Budget for Sales Tax

While you avoid income tax, Nevada’s 8%+ sales tax on most purchases (including groceries) adds up. Budget an extra 8% on taxable spending. A $50,000 annual spending budget costs $4,000 in sales tax. Track spending to understand true take-home value.