What Nevada residents actually pay
Nevada has no state income tax on wages. That removes a layer — but federal AMT, federal capital gains, and the 3.8% Net Investment Income Tax still apply, and a prior state may still have a claim.
No state income tax; popular exit destination.
Long-term vs short-term treatment
Federal long-term rates cap at 20% (plus 3.8% NIIT for high earners) on gains held 12+ months past the basis-setting event. For RSUs, the basis-setting event is the vest date. For ISOs held through a qualifying disposition, the rules are stricter: two years from grant and one year from exercise.
Frequently asked
- Does Nevada tax RSU income the same as wages?
- Nevada has no state income tax on wages, so RSU ordinary income is federal-only. Note that Washington residents still owe the 7% state long-term capital gains tax on sales above the threshold, and other states may claw back some income if your grant pre-dated your move.
- What happens if I exercise ISOs while living in Nevada?
- Nevada does not run a separate state AMT, so only federal AMT applies. You still need to model the bargain element carefully if you plan a cashless exercise-and-sell.
- I moved to Nevada from another state. Who taxes my vesting RSUs?
- Most high-tax states (CA, NY, MA) source RSU ordinary income to workdays between grant and vest. If your grant pre-dates your Nevada move, expect the old state to tax the portion of each tranche attributable to workdays earned there. Nevada taxes the remainder.
- Can I reduce Nevada taxes by timing my RSU sales?
- Nevada has no state income tax, so sale timing affects only your federal bill. NIIT and federal capital-gains brackets are still in play.
Related
- RSU taxes — Nevada
- ISO exercises and AMT — Nevada
- QSBS — Nevada
- Moving to or from Nevada with unvested equity: trailing nexus rules — Nevada
- RSU vesting schedules — Nevada
- ESPP taxation — Nevada
- NSO exercises and state tax — Nevada
- 401(k) and retirement accounts — Nevada
- Leaving Nevada: how to cleanly break residency before a liquidity event — Nevada
- Nevada equity-comp overview