Nevada capital gains tax on real estate is zero: the state has no personal income tax, so a Nevada resident selling a Las Vegas fourplex or a Reno warehouse owes only federal tax on the gain. That makes a 1031 exchange in Nevada a purely federal decision, worth about $76,400 on a typical $300,000 gain, while the real property transfer tax, up to $2.55 per $500 in Clark County, is still due at every closing.
Reviewed by Jon Hilley, CEO & Founder of 1031 Specialists. Last reviewed September 29, 2026.
| State tax on real estate gains | None for individuals; Nevada has no personal income tax |
|---|---|
| Long-term capital gains treatment | Not taxed by the state; federal tax only |
| Nonresident withholding at closing | None |
| Withholding form | None required by Nevada (federal FIRPTA still applies to foreign sellers) |
| Transfer or conveyance tax (a 1031 does not defer it) | Real property transfer tax: $2.55 per $500 in Clark County, $2.05 in Washoe and Churchill, $1.95 elsewhere |
| Clawback on out-of-state replacement property | No Nevada clawback; California's FTB 3840 follows gain from California property into Nevada |
| Conforms to Section 1031 | Not applicable for individuals (no income tax) |
| Property tax note | Partial abatement caps yearly tax increases at 3% for primary residences and qualified rentals, up to 8% for other property |
Table of contents
- How much is capital gains tax on real estate in Nevada?
- Nevada tax on a $300,000 gain: worked example
- Is there nonresident withholding when you sell in Nevada?
- Nevada real property transfer tax
- Conformity and clawback: what applies in Nevada
- The California-to-Nevada exchange: what actually changes
- Moving into or out of Nevada
- Where Nevada exchanges happen
- Federal 1031 rules for Nevada property
- Nevada 1031 mistakes to avoid
- Start your Nevada 1031 exchange
- Frequently asked questions
- Sources
How much is capital gains tax on real estate in Nevada?
For individuals, nothing. The Nevada Department of Taxation confirms there is no state income tax on individuals, and that includes capital gains. There are no city or county income taxes either. You do not file a Nevada return for the sale, and there is no state treatment of depreciation to track.
Business owners should know about the Commerce Tax, which applies to businesses with Nevada gross revenue over $4 million in a fiscal year. It is a gross receipts tax, not a capital gains tax, and most individual investors and small LLCs never reach the threshold.
The federal bill is the whole story: long-term gain taxed at 0%, 15% or 20% (20% above $545,500 single or $613,700 joint taxable income in 2026), depreciation taxed as unrecaptured §1250 gain at up to 25%, and the 3.8% net investment income tax above $200,000 single or $250,000 joint MAGI.
Nevada tax on a $300,000 gain: worked example
Assumptions: a $300,000 long-term gain on a Nevada rental, $100,000 of it from depreciation, a married couple filing jointly in the top federal bracket.
| Line | Math | Tax |
|---|---|---|
| Federal: unrecaptured §1250 gain | 25% × $100,000 | $25,000 |
| Federal: remaining long-term gain | 20% × $200,000 | $40,000 |
| Federal: net investment income tax | 3.8% × $300,000 | $11,400 |
| Federal subtotal | $76,400 | |
| Nevada state income tax | No personal income tax | $0 |
| Total deferred by a full 1031 | $76,400 + $0 | $76,400 |
Even with no state tax, the federal tax takes about 25% of the gain. The depreciation line is often the surprise; the depreciation recapture calculator shows yours. If you are weighing a plain sale, the capital gains vs. 1031 exchange comparison puts the two side by side.
Is there nonresident withholding when you sell in Nevada?
No. Nevada does not require the buyer or escrow to withhold state tax from a seller, resident or not, because there is no state income tax to prepay. That keeps closings simple and keeps the full proceeds moving to your qualified intermediary.
Two things can still reach a Nevada sale. A foreign seller faces federal FIRPTA withholding, covered in our guide for foreigners selling US property. And a resident of another state generally reports the gain to their home state, which may tax it and give no credit because Nevada charged nothing.
Nevada real property transfer tax
Nevada's real property transfer tax (RPTT) is collected by the county recorder when the deed records, based on the value declared on the Declaration of Value form. A 1031 exchange does not defer it; it is owed on the sale of your relinquished property and again when your replacement deed records. Nevada's statutory exemptions cover transfers such as those between spouses or to a wholly owned entity, not exchanges.
- Clark County (Las Vegas, Henderson): $2.55 per $500, or 0.51% of value. A $1,200,000 sale pays $6,120.
- Washoe County (Reno, Sparks) and Churchill County: $2.05 per $500, or 0.41%.
- All other counties, including Carson City: $1.95 per $500, or 0.39%.
Who pays is set by the purchase contract and local custom, so settle it in negotiation. Plan for the tax on both closings when you size the replacement purchase.
Conformity and clawback: what applies in Nevada
Because Nevada has no personal income tax, it has no §1031 conformity rules and no clawback of its own. Nevada will never ask for tax on gain you deferred here, even if you later exchange into another state.
The clawback that does matter in Nevada comes from next door. When a Californian exchanges California property into Nevada, California's Franchise Tax Board keeps its claim on the gain that built up in California. The investor files Form FTB 3840 with California every year until that deferred gain is recognized, even after becoming a Nevada resident. Our California 1031 exchange page covers the filing. Only appreciation that occurs after the exchange escapes California tax.
The California-to-Nevada exchange: what actually changes
Nevada is the most common landing spot for California investors, and the numbers explain why. A move plus an exchange can take future appreciation and rental income out of a 13.3% state and into a zero-tax one. What it cannot do is erase the California gain already embedded in the property.
- Residency first or exchange first: selling California property is California-source income either way, so the order does not change California's claim on the deferred gain.
- Later taxable sale: if you sell the Nevada replacement for cash, California taxes the original deferred gain and Nevada taxes none of it; appreciation after the exchange is federal only.
- Holding until death: heirs generally take a stepped-up basis, which can end both the federal and California exposure. See swap till you drop.
Moving into or out of Nevada
Moving in: once you are a Nevada resident, gain on property in other states is still taxed by the state where the property sits. A Nevada resident selling an Oregon or Arizona rental files there as a nonresident. Gain on Nevada property is federal only.
Moving out: if you leave Nevada and later sell Nevada property, Nevada still takes nothing, but your new home state may tax the whole gain. Selling or exchanging before you move to a taxing state can make a real difference. Investors heading south often look at Arizona, where the flat 2.5% rate applies, or stay in no-tax states such as Texas.
Where Nevada exchanges happen
Most Nevada exchanges close in Clark County, where Las Vegas and Henderson multifamily, industrial and single-tenant retail dominate. Northern Nevada is the second hub, driven by logistics and data-center growth around Reno-Sparks and a steady inflow of Bay Area buyers.
Property tax matters for replacement yield: Nevada's partial abatement limits a primary residence or qualified rental to a 3% yearly tax increase, while non-owner-occupied homes, land and commercial buildings are capped at a percentage of up to 8%.
Federal 1031 rules for Nevada property
You have 45 days from the sale to name replacement property in writing and 180 days to close on it. A qualified intermediary holds the money throughout; you cannot receive it. Buy equal or greater value and carry equal or greater debt, or cover the gap with cash, to defer all of it. Use the 45-day identification validator, the partial 1031 boot calculator and our 1031 exchange guides.
Nevada 1031 mistakes to avoid
- Skipping the exchange because "Nevada has no tax." The federal bill on a $300,000 gain can still reach $76,400.
- Leaving RPTT out of the budget on the replacement purchase, especially at the Clark County rate of $2.55 per $500.
- Former Californians forgetting to file FTB 3840 each year after exchanging into Nevada.
- Assuming a new Nevada residence shields a pending sale of property in another state; the property state still taxes it.
- Underwriting a replacement with the 3% abatement cap when a non-owner-occupied property uses the higher cap of up to 8%.
Start your Nevada 1031 exchange
Open your exchange before the relinquished property closes so we can hold the proceeds and prepare the assignment documents for escrow. Start your exchange or schedule a call with our team.
Frequently asked questions
How can I avoid capital gains tax on real estate in Nevada?
Nevada charges no capital gains tax, so the tax to plan for is federal. A 1031 exchange defers it when you reinvest all proceeds in like-kind real property through a qualified intermediary, and holding until death can eliminate it through a stepped-up basis.
Does Nevada have a capital gains tax?
No. Nevada has no personal income tax, so individuals pay no state tax on capital gains from real estate.
Is there withholding when a nonresident sells Nevada property?
No. Nevada has no state withholding on real estate sales. Foreign sellers still face federal FIRPTA withholding, and residents of other states may owe tax to their home state.
How much is the Nevada real property transfer tax?
The RPTT is $2.55 per $500 of value in Clark County, $2.05 in Washoe and Churchill counties, and $1.95 in the other counties. A 1031 exchange does not defer it.
If I exchange California property into Nevada, do I still owe California?
Yes, on the gain that built up in California. You file FTB 3840 with California each year until that deferred gain is recognized. Appreciation after the exchange is not taxed by California.
Sources
- Nevada Department of Taxation: Income tax in Nevada
- Nevada Department of Taxation: Real property transfer tax
- Clark County Recorder: RPTT
- Washoe County Recorder: Real property transfer tax
- Washoe County Assessor: Partial abatement
- California FTB: Form FTB 3840 instructions
- IRS Topic 409: Capital gains and losses
Related: California, Arizona, Utah, Idaho and all 50 states.
General information for Nevada property owners, not tax or legal advice. We are a qualified intermediary; confirm the details of your sale with your own tax advisor.
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