Nevada’s constitutional prohibition on income tax gives it a clear advantage over Colorado’s 4.4% flat rate. A $100,000 earner saves $4,400 per year — $367 per month — by living in Nevada. Property taxes are nearly identical in both states at around 0.60%. Colorado has the lowest state sales tax rate in the US at 2.9%, but local additions in Denver push the effective rate up to 8.81%; Nevada’s state rate of 6.85% plus local reaches 8.24% in some areas, making them broadly comparable on sales tax.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

🏔️ Colorado

4.4%

Flat Income Tax

Flat 4.4% state income tax; Denver metro adds local sales tax up to 8.81%

🎰 Nevada

0%

No Income Tax

Constitutional prohibition on income tax; no wage tax at any income level

Typical Annual Savings

At $100,000 income:

$4,400

That is $367/month back in your pocket!

Tax Savings by Income Level

IncomeCO TaxNV TaxSavings10-Year
$50,000 $2,200$0$2,200$22,000
$75,000 $3,300$0$3,300$33,000
$100,000 $4,400$0$4,400$44,000
$150,000 $6,600$0$6,600$66,000
$250,000 $11,000$0$11,000$110,000
$500,000 $22,000$0$22,000$220,000
💡

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Colorado Pros and Cons

✅ Pros

  • Lowest state sales tax rate in the USA at 2.9% (though local add-ons apply)
  • No capital gains surtax — flat 4.4% applies to all income types
  • Strong outdoor recreation economy and quality of life (skiing, hiking)
  • Denver is a major tech and aerospace hub with high-paying remote-friendly jobs

❌ Cons

  • 4.4% flat income tax — costs $4,400/year more than Nevada on $100K
  • Denver metro sales tax reaches 8.81% with local additions
  • Denver OPT payroll tax: $5.75/month per employee (small but real cost)
  • Higher cost of living in Denver metro has surged over the past decade

Nevada Pros and Cons

✅ Pros

  • 0% income tax — constitutionally protected, no wage tax at any income level
  • Saves $4,400-$22,000/year on income vs Colorado depending on earnings
  • No state estate tax or inheritance tax
  • Lower overall cost of living outside Las Vegas compared to Denver metro

❌ Cons

  • State sales tax 6.85% (higher than Colorado’s 2.9% state rate)
  • Las Vegas area can reach 8.24% combined sales tax with local rates
  • Nevada’s gaming-dependent economy can be volatile during downturns
  • Extreme heat in Las Vegas (115°F+ summer days) and limited outdoor recreation vs Colorado

Frequently Asked Questions

Q: How much income tax do I save moving from Colorado to Nevada?

Nevada has 0% income tax, so you save exactly 4.4% of your income. At $100,000 that’s $4,400/year ($367/month). At $250,000 it’s $11,000/year. Over 10 years at $100K income, you save $44,000. The savings scale linearly since Colorado’s rate is flat at 4.4%.

Q: Are property taxes the same in Colorado and Nevada?

Yes, they are nearly identical. Both Colorado and Nevada have average effective property tax rates of approximately 0.60%, among the lowest in the USA. On a $500,000 home, both states cost around $3,000/year in property tax. This means the income tax difference is the dominant factor in the Colorado vs Nevada comparison.

Q: Does Colorado have higher sales tax than Nevada?

Colorado’s state sales tax rate of 2.9% is the lowest in the nation, but local jurisdictions add substantial rates. Denver’s combined rate reaches 8.81%. Nevada’s state rate is 6.85%, reaching up to 8.24% in some areas. In practice, Las Vegas and Denver residents pay similar total sales tax, so this is not a meaningful differentiator.

Q: Is Nevada really better than Colorado for remote workers?

For income tax purposes, yes. A remote worker earning $150,000 saves $6,600/year in Nevada vs Colorado, or $66,000 over 10 years. Nevada also has no state estate tax and no capital gains tax. However, Colorado offers better skiing, hiking, and outdoor lifestyle that many remote workers value. The right choice depends on whether you prioritize tax savings or quality of life amenities.

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