When it comes to taxes, Nevada is a great place to retire | nnbw.com

When it comes to taxes, Nevada is a great place to retire

Special to the NNBW

According to a survey by SmartAsset, the Johnson Lane area of Douglas County is the best place to retire in Nevada with Lemmon Valley in Washoe County a close second. And Nevada overall is great for retirees.

The study ranks locations on a Retirement Tax Friendliness index, which takes into account property, income, fuel, sales, and Social Security tax data, and includes a list of the top 10 locations in Nevada for retirement.

SmartAsset is a financial technology company. Below is a look at specifics on the Silver State’s Retirement Tax Friendliness index.

Nevada Retirement Taxes

If you're searching for a great place to retire, Nevada may be a safe bet. It has an arid climate that receives 220 to 300 days of sunshine per year, depending on where in the state you live. Recreational opportunities in the Silver State abound. It has the most casinos of any U.S. state and more than 130 golf courses.

Nevada also has some of the lowest retirement taxes of any U.S. state. It has no state income tax, which means that all retirement income is tax-free (at the state level). It also has relatively low property taxes, while the state sales tax is somewhat higher than average.

Is Nevada tax-friendly for retirees?

Yes, Nevada is very tax-friendly for retirees. Since Nevada does not have a state income tax, any income you receive during retirement will not be taxed at the state level. This includes income from Social Security and income from retirement accounts.

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Additionally, the average effective property tax rate in Nevada is just 0.96%. The average total sales tax rate is 7.94%. That is slightly higher than average but it is the only retirement tax that is higher in Nevada than in the rest of the country. Nevada has no estate or inheritance tax.

Is Social Security taxable in Nevada?

No. Social Security retirement benefits, even those taxed at the federal level, are not taxed in Nevada. In combination with the low cost of living in rural parts of the state, this can make it possible for many retirees in Nevada to use Social Security as their primary or only source of income.

Are other forms of retirement income taxable in Nevada?

No. Since Nevada does not have a state income tax, any income from a pension, from a 401(k), from an IRA or from any other retirement account is not taxable. This can represent significant savings when compared to most other states, which generally tax at least some forms of retirement income.

How high are property taxes in Nevada?

Property taxes in Nevada are relatively low. A typical homeowner in Nevada spends about $1,600 annually in property taxes. That varies significantly between counties however. In Eureka County, homeowners spend closer to $550 per year on property taxes, while in Douglas County a typical homeowner spends about $1,900.

Does Nevada have any property tax exemptions for seniors?

While there is no general property tax exemption for seniors, there are a number of specific programs from which some retirees may benefit. The exemptions available include a veteran's exemption that is available to veterans who served in active duty during a recognized war period. There is also a disabled veteran's exemption that is available to veterans with a service-connected disability of no less than 60%. The blind exemption is available to Nevada residents whose vision is no better than 20/200 when wearing contact lenses or glasses. The surviving spouse's exemption is available to homeowner's whose spouse has passed away and is equal to about $41 in savings.

How high are sales taxes in Nevada?

Sales tax rates in Nevada are somewhat higher than average. The statewide rate is 6.85%. This ranks among the ten highest in the U.S. However, local rates are relatively low, averaging slightly more than 1%. Combined, the overall state average is 7.94% or 13th highest in the country.

Nevada has some important sales tax exemptions designed to benefit seniors. Prescription drugs are exempt. Durable medical equipment, like wheelchairs and prosthetic devices, is exempt. Groceries and newspapers are also exempt.

What other Nevada taxes should I be concerned about?

Nevada collects significant revenue through sin taxes on products such as alcohol and tobacco. The state's gas tax is 33.15 cents per gallon. This is the 10th highest of any U.S. state.

Nevada does not have an estate tax or an inheritance tax.

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