Military Retirement in Nevada: Complete 2026 Tax Guide
NO state income tax on retirement pay or any income
🎯 Quick Summary: Nevada Military Retirement Taxes (2026)
- ✓ Military retirement pay: NO state income tax
- ✓ VA disability payments: Tax-free (federal and state)
- ✓ Survivor Benefit Plan (SBP): NO state income tax
- ✓ Property tax: Exemptions for disabled veterans
- ✓ Overall ranking: Top-tier tax-friendly state for military retirees
Why Nevada Is One of the Best States for Military Retirement
Nevada is one of only nine states with no state income tax, making it an outstanding destination for military retirees. Your entire military pension, VA disability, Social Security, and any civilian income are completely free from state income tax.
Beyond the tax benefits, Nevada offers year-round sunshine, world-class entertainment in Las Vegas, outdoor recreation from Red Rock Canyon to Lake Tahoe, and a growing veteran community with over 220,000 veterans calling the Silver State home.
2026 Nevada Military Retirement Tax Breakdown
State Income Tax on Military Retirement Pay
🎉 ZERO State Income Tax!
Nevada does not have a state income tax on wages, salaries, or retirement income. This applies to ALL income including military retirement pay, pensions, Social Security, investments, and civilian wages. Your military pension is only subject to federal income tax.
VA Disability Compensation
✓ Completely Tax-Free
VA disability payments are tax-exempt at both the federal and Nevada state levels. Whether you receive 10%, 100%, or any rating in between, you keep every dollar.
Other Tax Benefits for Nevada Veterans (2026)
| Benefit | Details |
|---|---|
| Property Tax Exemption |
|
| Sales Tax | 6.85% state sales tax (local taxes add 0.25-1.53%). No groceries tax. |
| Vehicle Registration | Disabled veterans qualify for reduced fees. Specialty veteran plates available. |
| State Park Access | Free Nevada State Parks pass for disabled veterans with 50%+ rating. |
Real Example: How Much You'll Save in Nevada (2026)
Let's compare a military retiree in Nevada vs. California to see the tax savings:
Example Scenario: E-7 Retired After 20 Years
- • Military retirement pay: $2,800/month ($33,600/year)
- • VA disability (70%): $1,916/month ($22,992/year)
- • Part-time civilian job: $25,000/year
- • Total annual income: $81,592
Nevada (NO State Income Tax)
All income: Tax-free at state level
State tax: $0
California (9.3% Tax Bracket)
Partial exemption, but still pays on income
State tax: ~$2,100
Annual Nevada Savings: $2,100+
Over 20 years of retirement: $42,000+ saved
Cost of Living in Nevada for Military Retirees (2026)
Nevada's cost of living varies by location. Las Vegas is near the national average, while Reno is higher due to California proximity:
| Category | Nevada vs. National Average | Notes |
|---|---|---|
| Housing | +5% to +15% | Median home: $420,000 Las Vegas, $550,000 Reno (2026). Henderson, North Las Vegas more affordable. |
| Groceries | +3% higher | Smith's, Albertsons, Walmart, Costco available. No state grocery tax. |
| Healthcare | Similar to average | VA Southern Nevada Healthcare. Mike O'Callaghan hospital at Nellis. TRICARE accepted. |
| Transportation | -5% cheaper | Lower gas prices than California. Car-dependent but Las Vegas has growing transit. |
| Utilities | +10% higher | A/C costs high May-September due to desert heat. Water costs rising. |
Major Military Installations in Nevada
Nevada hosts world-class military training facilities and the famous Red Flag exercises:
✈️ Air Force
- Nellis Air Force Base - Las Vegas - Air Combat Command, Red Flag exercises, USAF Warfare Center
- Creech Air Force Base - Indian Springs - Home of MQ-9 Reaper drone operations
- Nevada Test and Training Range - Largest contiguous air/ground space for military training
⚓ Navy
- Naval Air Station Fallon - "TOPGUN" training location since 1996
- Naval Strike and Air Warfare Center
- Fleet replacement squadron training
🏰 Army
- Hawthorne Army Depot - Ammunition storage and demilitarization
- National Guard facilities throughout state
🎖️ National Guard
- Nevada Air National Guard - 152nd Airlift Wing (Reno)
- Nevada Army National Guard - Units statewide
Best Cities in Nevada for Military Retirees (2026)
| City | Nearby Base | Median Home Price | Why It's Great |
|---|---|---|---|
| Las Vegas | Nellis AFB | $420,000 | World-class entertainment, VA medical center, diverse economy, major airport |
| Henderson | Nellis AFB | $450,000 | Safest large city in NV, master-planned communities, family-friendly |
| North Las Vegas | Nellis AFB | $380,000 | Most affordable Vegas area, closest to Nellis, growing rapidly |
| Reno | NAS Fallon (60 mi) | $550,000 | Four seasons, Lake Tahoe access, tech growth, smaller city feel |
| Sparks | NV ANG | $490,000 | More affordable than Reno, growing community, good schools |
VA Healthcare & Resources in Nevada
Nevada has 2 VA medical centers and multiple outpatient clinics serving 220,000+ veterans:
- VA Southern Nevada Healthcare System (Las Vegas) - Full-service medical center, specialty care
- VA Sierra Nevada Health Care System (Reno) - Comprehensive care for Northern Nevada
- Mike O'Callaghan Military Medical Center (Nellis AFB) - DoD/VA joint venture, open to retirees
- Community-Based Outpatient Clinics - Henderson, Pahrump, Laughlin, and rural Nevada locations
🎓 Education Benefits for Veterans & Families in Nevada
Nevada provides education benefits including immediate in-state tuition for all veterans, Yellow Ribbon Program participation, and dependent education benefits for families of disabled veterans.
In-State Tuition for All Veterans
Immediate In-State Tuition Upon Arrival
Nevada offers in-state tuition to all veterans using GI Bill benefits regardless of how long they've lived in the state. This can save $10,000-$15,000 per year compared to out-of-state rates at Nevada's public universities.
Nevada University Tuition Rates (2026)
| Institution | In-State Tuition | Out-of-State | Savings |
|---|---|---|---|
| UNLV (Las Vegas) | ~$9,000 | ~$24,000 | $15,000/yr |
| UNR (Reno) | ~$8,500 | ~$23,000 | $14,500/yr |
| Nevada State College | ~$6,000 | ~$16,000 | $10,000/yr |
| College of Southern Nevada | ~$3,500 | ~$10,500 | $7,000/yr |
Yellow Ribbon Program Schools in Nevada
For veterans using the Post-9/11 GI Bill at private universities or graduate programs, the Yellow Ribbon Program can cover costs above the GI Bill cap:
Participating Schools
- UNLV - Various graduate programs
- University of Nevada, Reno - Graduate programs
- Roseman University - Health sciences
- Sierra Nevada University - Various programs
- Touro University Nevada - Health professions
How Yellow Ribbon Works
- School contributes a portion
- VA matches the school's contribution
- Combined with GI Bill = reduced/free tuition
- Must have 100% Post-9/11 GI Bill
- Contact school's VA office to apply
Education Benefits for Military Dependents
Nevada Dependent Education Programs
- Children of Deceased Veterans: May qualify for tuition assistance at Nevada public colleges
- Dependents of 100% Disabled Veterans: Eligible for fee waivers at state schools
- GI Bill Transfer: Spouses and children can use transferred Post-9/11 GI Bill benefits
- Survivors' and Dependents' Educational Assistance (DEA): Chapter 35 benefits available
Nevada National Guard Education Benefits
Nevada National Guard Tuition Assistance
- Federal Tuition Assistance available (up to $250/credit hour)
- Can be combined with GI Bill benefits
- Available at accredited colleges and universities
- Must maintain satisfactory drill attendance
- Contact your unit's Education Services Officer for details
How to Apply for Nevada Education Benefits
- In-State Tuition: Submit DD-214 to school's registrar or VA certifying official when enrolling.
- Yellow Ribbon: Contact each school's VA office - limited slots may be available.
- Dependent Benefits: Apply through Nevada Department of Veterans Services.
- Questions? Contact Nevada Department of Veterans Services: 702-486-3830 (Las Vegas) or 775-688-1653 (Reno)
Official Resources: Nevada Dept of Veterans Services | VA Yellow Ribbon Search
Pros and Cons of Retiring in Nevada
✅ Pros
- • NO state income tax (saves $1,000-$5,000+/year)
- • 300+ days of sunshine annually
- • In-state tuition for all veterans immediately
- • Yellow Ribbon schools at UNLV, UNR
- • World-class entertainment (Las Vegas)
- • Nellis AFB - major Air Force installation
- • Joint DoD/VA hospital at Nellis
- • No estate or inheritance tax
- • Outdoor recreation (Red Rock, Lake Tahoe)
- • Growing tech and healthcare industries
⚠️ Cons
- • Extreme summer heat (110°F+ in Vegas)
- • High summer utility costs (A/C)
- • Housing costs rising in both metros
- • Water scarcity concerns (Lake Mead)
- • Limited education benefits beyond in-state tuition
- • Reno significantly more expensive
- • Car-dependent outside Vegas Strip
- • Gambling culture may not suit everyone
Frequently Asked Questions
Does Nevada tax military retirement pay?
No. Nevada has no state income tax on any income. Military retirement pay is completely tax-free at the state level. You only pay federal income tax on your military pension.
Does Nevada tax VA disability payments?
No. VA disability compensation is tax-free at both the federal and state levels nationwide, including Nevada.
What is the cost of living in Nevada for military retirees?
Nevada's cost of living varies by location. Las Vegas is approximately at the national average, while Reno is 10-15% higher due to California proximity. North Las Vegas and Henderson offer more affordable options in the Vegas area. Summer utility costs can be high due to air conditioning needs.
What major military bases are in Nevada?
Nevada's major installation is Nellis Air Force Base near Las Vegas, home of the USAF Warfare Center and Red Flag exercises. The state also has Creech AFB (drone operations), Naval Air Station Fallon (TOPGUN training), and the Nevada Test and Training Range.
Does Nevada offer in-state tuition for veterans?
Yes. Nevada offers in-state tuition to all veterans using GI Bill benefits regardless of how long they've lived in the state. This saves $10,000-$15,000 per year at UNLV, UNR, and other state schools.
What education benefits do Nevada veterans receive?
Nevada veterans receive immediate in-state tuition at all public colleges and universities, access to Yellow Ribbon Program schools (UNLV, UNR, and private schools), and National Guard tuition assistance. Dependents of deceased or 100% disabled veterans may qualify for tuition assistance at state schools.
Calculate Your Nevada Retirement Income
Use our free calculator to see exactly how much you'll keep after taxes when retiring in Nevada. Factor in your military pension, VA disability, and any civilian income to plan your retirement with confidence.
Ready to Calculate Your Nevada Retirement Income?
See exactly what civilian salary you need based on your retirement pay, VA disability, and Nevada's zero state income tax
Use the Free Calculator →Additional Resources for Nevada Veterans
- Nevada Department of Veterans Services - veterans.nv.gov - State benefits, claims assistance
- Nevada Veterans Assistance - Housing, employment, and transition support
- Southern Nevada Veterans Memorial Cemetery - Boulder City
- Northern Nevada Veterans Memorial Cemetery - Fernley
- VA Yellow Ribbon Schools in Nevada - Search participating schools
🎖️ Bottom Line for Nevada Military Retirement
Nevada offers exceptional tax advantages for military retirees with zero state income tax, saving you thousands annually. Veterans receive immediate in-state tuition at UNLV, UNR, and state community colleges, plus access to Yellow Ribbon programs. Combined with world-class entertainment, year-round sunshine, the joint DoD/VA hospital at Nellis, and outdoor recreation from Red Rock Canyon to Lake Tahoe, Nevada is an excellent choice for military retirement. Use our calculator above to see your exact financial picture in the Silver State.
☕ Support This Free Resource
This comprehensive guide took hours of research to compile and verify with 2026 tax laws. If it helped you plan your retirement, consider buying us a coffee to keep this resource free, accurate, and ad-free for all veterans!
(No pressure - sharing with fellow vets helps too!)