Nevada Income Tax on Military Pay and Retirement

Nevada does not tax personal income and the prohibition is constitutional rather than merely statutory. Article 10, section 1 of the Nevada Constitution provides: "No income tax shall be levied upon the wages or personal income of natural persons." That is a stronger guarantee than a state which simply has not enacted an income tax, and stronger than New Hampshire's position, where the interest and dividends tax existed until it was repealed effective January 1, 2025. Changing Nevada's position would take a constitutional amendment, which in Nevada means passage by two consecutive sessions of the Legislature and then approval by the voters, or an initiative petition approved at two successive general elections. The consequences for a veteran or service member, each of which is often listed as a separate Nevada benefit and is really this one fact: Military retired pay is not taxed. Active duty pay is not taxed, and there is no Nevada withholding to set up. Survivor Benefit Plan annuity payments are not taxed. Drill pay and annual training pay are not taxed. VA disability compensation, VA pension and Dependency and Indemnity Compensation are not taxed, which would also be true anywhere because they sit outside federal gross income. Combat zone pay is not taxed and there is no state filing deadline to extend. A nonresident service member stationed in Nevada owes no Nevada income tax on military pay, and a military spouse working in Nevada owes none on wages. The Servicemembers Civil Relief Act residency protections that do real work in other states have nothing to operate on here, though they still matter for a Nevada-domiciled member stationed in a state that does tax income. What follows structurally is the same point that shapes the New Hampshire file. With no personal income tax there is no mechanism for a refundable credit, so Nevada cannot deliver veteran tax relief the way Missouri delivers a circuit breaker credit or Wisconsin delivers a refundable property tax credit paid by cheque. All of Nevada's veteran tax relief is an exemption applied at the county against the property tax roll or at the Department of Motor Vehicles against the governmental services tax, which is why NRS 361.090, NRS 361.091, NRS 371.103 and NRS 371.104 carry the weight in this file, and why their indexed dollar amounts matter so much. What Nevada does tax, and a veteran will notice, is consumption and business activity. There is a state sales and use tax with local add-ons, and no veteran exemption from it. The modified business tax under chapter 363B and the commerce tax under chapter 363C apply to a veteran-owned business on the same terms as any other, and neither chapter contains a veteran preference or credit. Nevada has no estate tax and no inheritance tax. Property tax is the tax where a veteran's status changes the bill, and it is capped in a way that helps a long-term owner: NRS 361.4722 and the related partial abatement provisions limit annual increases in the tax on an owner-occupied primary residence, which operates alongside the veteran exemptions rather than instead of them.