Nevada — Personal Income Tax

Nevada does not impose a state personal income tax on individuals. The Nevada Constitution, Article 10, Section 1 expressly prohibits any tax on the wages or personal income of natural persons. This constitutional prohibition covers all forms of individual income, including wages, salaries, tips, investment income, dividends, capital gains, and retirement distributions. Because the prohibition is embedded in the state constitution rather than in statute, it cannot be changed by legislative action alone—any repeal would require a constitutional amendment approved by the Nevada Legislature in two successive sessions and ratified by Nevada voters in a statewide election.

Nevada residents are not required to file a state income tax return, and the Nevada Department of Taxation does not administer or collect any individual income tax. Nevada's constitutional ban makes it one of nine U.S. states without a personal income tax. Federal income tax obligations remain unaffected by Nevada's state tax structure.

Source: Nev. Const. art. 10, § 1

Nonresidents who earn wages or other income from Nevada sources are not subject to Nevada personal income tax. The Nevada Constitution's prohibition on taxing "the wages or personal income of natural persons" applies to all individuals regardless of residency status. Nevada does not require nonresidents to file a state income tax return for Nevada-source income, and employers are not required to withhold Nevada income tax from wages paid to nonresident employees. This treatment differs from most states, which tax nonresidents on income earned within their borders.

Source: Nev. Const. art. 10, § 1(9)

Nevada does not impose a state inheritance tax or estate tax on individuals. The Nevada Constitution, Article 10, Section 1 expressly prohibits any inheritance tax, in the same provision that prohibits taxes on personal income. Nevada's estate tax statutes in NRS Chapter 375A remain on the books but have been dormant since 2005, as they were tied to a federal credit for state death taxes that no longer exists under federal law. Nevada residents who inherit property are not subject to Nevada state tax on the inheritance itself, regardless of the estate's value.

Source: Nev. Const. art. 10, § 1

Nevada's prohibition on personal income taxation cannot be changed by legislative action alone. Article 16, Section 1 of the Nevada Constitution requires any constitutional amendment to be approved by a majority of all members elected to each house of the Nevada Legislature in two successive legislative sessions, then submitted to Nevada voters for approval by majority vote. Because the income tax prohibition is embedded in the constitution at Article 10, Section 1(9) rather than in statute, repealing it would require this multi-stage process spanning at least two legislative sessions and a statewide election.

Source: Nev. Const. art. 16, § 1

Establishing Nevada residency does not automatically sever income tax obligations to another state. Although Nevada imposes no personal income tax and defines legal residence under NRS 10.155 solely by physical presence within the state during the period for which residency is claimed, other states—particularly California, New York, and other high-tax jurisdictions—apply independent statutory tests that may continue to treat an individual as a resident for tax purposes even after a Nevada move.

Nevada's residency definition applies only to Nevada law

NRS 10.155 provides that the legal residence of a person "with reference to the person's right of naturalization, right to maintain or defend any suit at law or in equity, or any other right dependent on residence, is that place where the person has been physically present within the State" during the period for which residency is claimed. The statute permits temporary absences undertaken "with the intention in good faith to return without delay." This definition controls Nevada-law questions such as filing suit, obtaining a driver's license, or establishing domicile for estate-planning purposes under NRS 41.191 (which permits a sworn declaration of domicile filed with the district court evidencing residence and intent to make Nevada a permanent, predominant, or principal home). It does not control how California, New York, or other states classify an individual's residency under their own tax codes.

California's continuing-resident test

California Revenue and Taxation Code § 17014(a) defines "resident" to include (1) every individual who is in California for other than a temporary or transitory purpose, and (2) every individual domiciled in California who is outside the state for a temporary or transitory purpose. Under the second prong, a person who was domiciled in California remains a California resident for state income tax purposes unless the move to Nevada (or another state) is undertaken for "other than temporary or transitory" purposes—a fact-intensive determination turning on intent and the permanency of the relocation. Section 17014(c) provides that "any individual who is a resident of this state continues to be a resident even though temporarily absent from the state."

An individual who moves to Nevada but retains significant California connections—maintaining a California residence, spending substantial time in California, or keeping business or family ties in California—may be treated by California as remaining domiciled in California or as being in California for other than a temporary or transitory purpose, triggering California resident income tax on worldwide income. The statute does not define "temporary or transitory purpose" with precision; California administrative regulations and Board of Equalization decisions apply multifactor tests evaluating the location of real property, spouse and children, voter registration, driver's license, professional ties, business interests, days spent in each state, and other indicia of connection. Unable to confirm the full multifactor test from primary authority as of 2026-05-28.

Practical considerations

Practitioners advising clients on Nevada residency moves for tax-benefit purposes should inform clients that they may face residency audits from the prior state of domicile. Documenting the move strengthens the position that the individual has severed domicile and is outside the prior state for other than temporary or transitory purposes. Steps include: filing a Nevada declaration of domicile under NRS 41.191; obtaining a Nevada driver's license and surrendering the prior-state license; registering vehicles in Nevada; changing voter registration; closing prior-state bank accounts; selling or renting prior-state real property; establishing Nevada professional and social ties; and tracking days spent in each state. The burden of proof in residency disputes and the weight given to individual factors vary by state; consult the tax code and regulations of the specific state from which the individual is moving.

Source: NRS 10.155; NRS 41.191; Cal. Rev. & Tax. Code § 17014; Nevada Legislative Counsel Bureau, Residency Requirements in Nevada (fact sheet)

Individuals moving from New York to Nevada face a distinct residency risk under New York Tax Law § 605(b)(1)(B), which operates independently of Nevada residency law and California's domicile-based approach. New York can tax a person domiciled outside New York—including Nevada residents—as a "statutory resident" if two conditions are met: (1) the individual maintains a permanent place of abode in New York State, and (2) the individual spends more than 183 days of the taxable year in New York State. Unlike California's continuing-resident test, which turns on whether the individual has abandoned California domicile, New York's statutory-residency test applies to individuals who concede they are domiciled elsewhere.

The 183-day threshold

The 183-day count is measured on a calendar-year basis (or the taxpayer's taxable year if different). Any part of a day spent in New York counts as a full day, subject to narrow exceptions for travel in transit through New York to a destination outside the state or solely for boarding a plane, ship, train, or bus to a destination outside New York. New York regulations place the burden on the individual domiciled outside New York who maintains a permanent place of abode in New York and claims to be a nonresident to keep and have available adequate records substantiating that the individual did not spend more than 183 days of the taxable year within New York State. Nevada residents who maintain a New York residence—whether owned, leased, or available through family—should track days meticulously using contemporaneous records such as credit-card receipts, cellphone location data, and electronic toll records.

Permanent place of abode: the residential-interest requirement

The statute does not define "permanent place of abode." New York regulations define it as "a dwelling place of a permanent nature maintained by the taxpayer, whether or not owned by such taxpayer, and will generally include a dwelling place owned or leased by such taxpayer's spouse." The regulations clarify that a mere camp or cottage suitable and used only for vacations is not a permanent place of abode, and that a barracks or construction lacking facilities ordinarily found in a dwelling (facilities for cooking, bathing, etc.) is not generally deemed a permanent place of abode. The regulations further provide that a permanent place of abode must be maintained "for substantially all of the taxable year," which the New York Department of Taxation and Finance interprets to mean more than eleven months.

The leading case interpreting "maintains a permanent place of abode" is Matter of Gaied v. New York State Tax Appeals Tribunal, 22 N.Y.3d 592 (2014). Gaied, a New Jersey domiciliary, owned a three-unit apartment building in Staten Island. He provided one apartment to his elderly parents and rented out the other two units. He occasionally stayed at his parents' apartment to attend to their medical needs, sleeping on a couch, but kept no personal effects there. The New York Department of Taxation and Finance assessed him as a statutory resident for years in which he was present in New York City more than 183 days, arguing that mere maintenance of the property—having property rights to it—was sufficient to constitute a permanent place of abode. The Tax Appeals Tribunal upheld the assessment on that theory.

The New York Court of Appeals reversed. The Court held that "the legislative history of the statute, to prevent tax evasion by New York residents, as well as the regulations, support the view that in order for a taxpayer to have maintained a permanent place of abode in New York, that taxpayer must, himself, have a residential interest in the property." The Court concluded that "there is no rational basis" for the interpretation that a taxpayer need not reside in the dwelling but only maintain it. The Court's holding requires that the individual have living arrangements at the dwelling for the individual's own residential use—not merely property rights or occasional access.

Practical application for Nevada residents

A Nevada resident who retains ownership of a New York home but leases it to an unrelated third party under a bona fide arm's-length lease for the entire year does not maintain a permanent place of abode in New York under Gaied. Similarly, a Nevada resident who owns a New York property occupied exclusively by parents or adult children, with no living quarters reserved for the Nevada resident's own use, does not maintain a permanent place of abode under Gaied. By contrast, a Nevada resident who owns or leases a New York apartment or house and can use it whenever the resident wants—even if the resident stays there only occasionally—does maintain a permanent place of abode. If that Nevada resident spends more than 183 days in New York during the year (for example, visiting family, conducting business, or otherwise present in the state), the resident will be classified as a New York statutory resident and owe New York personal income tax on worldwide income for that year.

Spousal attribution and the "substantially all" requirement

The regulation's spousal-attribution rule means that a dwelling owned or leased by the Nevada resident's spouse is treated as maintained by the Nevada resident. The "substantially all" (eleven-month) requirement interacts with the Gaied residential-interest test: the individual must have a residential interest in the property and the property must be maintained for substantially all of the taxable year. A property purchased or leased partway through the year, or sold or lease-terminated partway through the year, will not satisfy the eleven-month threshold even if the individual has a residential interest in it.

Consequences of statutory-resident status

An individual classified as a New York statutory resident for a taxable year is taxed as a New York resident for that entire year, with New York personal income tax imposed on the individual's worldwide income. New York does allow a credit under Tax Law § 620 for income tax paid to another state on income derived from sources in that other state, but the credit does not eliminate the risk of double taxation on income not sourced to another state (for example, investment income, retirement distributions, or remote-work compensation sourced under New York's convenience-of-the-employer rule). Nevada residents who conduct substantial business in New York, maintain a New York residence, or have family ties requiring frequent New York visits should model whether a given pattern of days and dwelling use will trigger statutory-residency status and plan accordingly.

Source: N.Y. Tax Law § 605(b)(1)(B); Matter of Gaied v. New York State Tax Appeals Tribunal, 22 N.Y.3d 592 (2014); New York Department of Taxation and Finance, Permanent Place of Abode