Nevada Capital Gains Tax: What You Should Know

Reviewed by: Brian Stormont, CFP®
September 23, 2025

Nevada is one of the most tax-friendly states in the country, and one of its biggest advantages is the absence of state-level capital gains tax. For residents and investors, this can make a meaningful difference when selling appreciated assets such as stocks, real estate, or business interests. However, federal capital gains taxes still apply, and without proper planning, those taxes can significantly erode profits. Understanding Nevada’s unique tax environment and exploring strategies to minimize federal liability can help maximize after-tax returns.

Nevada’s Tax Environment for Capital Gains

Unlike many states, Nevada does not levy an income tax of any kind¹. This means individuals who live in Nevada pay no state-level tax on wages, retirement income, or capital gains. As a result, any profits realized from selling investments or property are only subject to federal tax rules. Nevada’s no-income-tax structure positions it as one of just a handful of states offering this advantage, creating an attractive financial environment for both residents and relocating investors.

Federal Capital Gains Tax Overview

Even though Nevada doesn’t tax capital gains, federal taxes still apply. These taxes depend on how long the asset was held before being sold:

Short-term capital gains: Profits on assets held for one year or less are taxed as ordinary income, subject to federal income tax rates that can be as high as 37%².
Long-term capital gains: Assets held for more than one year qualify for preferential tax rates of 0%, 15%, or 20%, depending on taxable income levels³.

Additional federal rules can also apply:

Net Investment Income Tax (NIIT): An extra 3.8% tax may apply to high earners above certain thresholds⁴.
Special asset categories: Collectibles may be taxed at up to 28%³, and certain qualified small-business stock gains have unique tax treatments.

Real-World Implications for Nevada Residents

Consider this example: An investor living in Nevada sells appreciated stock for a $100,000 gain. Because Nevada has no state income or capital gains tax, they owe nothing to the state. At the federal level, the tax rate depends on whether the gain is short- or long-term, plus the investor’s overall income level. Compared to residents of high-tax states like California, where state rates can add over 10% to the tax bill, Nevada residents save significantly by being subject only to federal taxes.

Tax Planning Strategies for Minimizing Federal Liability

While Nevada eliminates state tax concerns, investors can still benefit from proactive planning to reduce federal capital gains taxes:

Hold investments long-term to qualify for lower federal rates.
Use tax-loss harvesting to offset gains with losses from other investments.
Time asset sales during lower-income years to remain in a lower federal bracket.
Leverage advanced tools, such as charitable remainder trusts, 1031 exchanges, or investments in renewable energy projects, to further reduce or defer taxes.

How Nevada Compares with Other States

Nevada is part of a select group of states—including Alaska, Florida, Texas, and Wyoming—that impose no state income tax. For investors, this translates to potentially thousands of dollars saved each year when compared to states with high income and capital gains taxes. Nevada’s competitive edge is particularly appealing for retirees, entrepreneurs, and high-net-worth individuals seeking to preserve more of their wealth.

Business-Friendly Climate and Broader Economic Appeal

Nevada’s tax advantages extend beyond individuals. With no personal income tax, no corporate income tax, and no capital gains tax, the state has built a reputation for being exceptionally business-friendly¹. In recent years, Nevada has also made efforts to attract companies outside the tourism and gaming sectors, offering favorable legal structures, light regulation, and a predictable tax environment. These policies make Nevada an increasingly attractive place for startups, established businesses, and investors alike.

When to Consult a Tax Professional

While Nevada residents enjoy clear benefits, navigating federal capital gains taxes can still be complex. Professional advice may be especially valuable when:

Selling a business or property involving large or multi-year transactions.
Managing income near NIIT thresholds.
Considering sophisticated strategies like 1031 exchanges or charitable trusts.
Dealing with unique assets such as collectibles or qualified small-business stock.

Working with a knowledgeable advisor ensures that tax strategies align with broader financial and estate planning goals.

Conclusion

Nevada provides a uniquely favorable environment by imposing no state capital gains tax, allowing residents to keep more of their profits. Still, federal capital gains taxes remain a significant factor that requires careful planning. By holding assets long-term, timing sales strategically, and using advanced planning tools, investors can optimize their after-tax returns.

At Insight Wealth Strategies, we specialize in tax-aware investment management and financial planning to help clients take advantage of Nevada’s benefits while minimizing federal tax burdens. Whether you’re investing, selling a business, or planning for retirement, our team can help you build strategies designed to preserve and grow your wealth.

Reviewed by,

Brian Stormont, CFP®

Brian Stormont is a comprehensive, fee-only financial advisor with Insight Wealth Strategies who began his career in the financial industry in 2000. His expertise encompasses retirement planning, investment planning, estate planning, and high-level strategies to help business owners and individuals minimize their income taxes.

Sources:

Insight Wealth Strategies, LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Insight Wealth Strategies, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Insight Wealth Strategies, LLC unless a client service agreement is in place.

Insight Wealth Strategies, LLC (IWS) and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.