Nevada Ranks Near Bottom for Lifetime Tax Bills
New estimates of lifetime tax bills put Nevada among the lowest-tax states in the country.
Visual Capitalist modeled what one worker in each state would pay over a lifetime in federal and state income taxes, plus sales, property, and car taxes. The model assumes 45 years of work, a lifespan of about 80, a home purchase at 40, and five cars over a lifetime.
New Jersey comes out highest at $1.36 million, or 48.2% of lifetime earnings one worker pays. Massachusetts is next at $1.30 million, then Connecticut at $1.25 million.
Florida is lowest at about $509,000, or 25.5% of lifetime earnings. South Dakota is $516,000 and Arkansas $518,000.
Nevada ranks 46th at $535,652, or 26% of lifetime earnings. Only Oklahoma, Arkansas, South Dakota, and Florida are lower. The big reason is that Nevada has no state income tax.
These estimates change with income, housing, and how long someone works. Earn more, buy a costlier home, or stay on the job longer, and the lifetime tax bill rises. Having no state income tax also does not make a state cheap across the board. Washington has no state income tax either and still ranks 16th at $816,217, showing that sales and other levies can add up.
Supporters of Nevada’s tax structure will cite the 46th-place ranking as proof residents pay less in taxes than people in high-tax coastal states. Critics will note the ranking does not measure public services, housing costs, or how much of the bill is federal.
