The Short Answer
No state income tax, so active-duty base pay is not taxed by Nevada. Your base pay is set by the federal pay table โ identical to every other state for your rank and years of service. What actually changes in Nevada is your BAH (averaging $1,600/mo without dependents and $2,000/mo with dependents) and how Nevada treats the taxable portion of your pay.
State tax status: โ TAX EXEMPT
2026 Worked Example โ E-5, 6 Years, With Dependents in Nevada
Here is how the math actually lands for a mid-career enlisted member stationed in Nevada, built the way I read my own LES. Base pay and BAS are federal; the Nevada BAH figure is the state average.
| Monthly line item | Amount | Taxable? |
|---|---|---|
| Base pay (E-5, over 6 yrs) | $3,874 | Yes (federal + state) |
| BAH with dependents (Nevada avg) | $2,000 | No โ tax-free |
| BAS (enlisted) | $476.95 | No โ tax-free |
| Gross monthly entitlements | $6,350.95 | โ |
| Taxable income (base pay only) | $3,874 | โ |
| Est. Nevada state income tax | $0 (no state income tax) | โ |
Only the $3,874 of base pay is taxable โ the $2,476.95 of BAH + BAS is completely tax-free. Run your exact rank, ZIP, and dependency status in the Military Pay Calculator for a precise estimate.
How Nevada Taxes Each Type of Military Pay
Active-Duty Base Pay
No state income tax, so active-duty base pay is not taxed by Nevada.
Guard & Reserve Drill Pay
No state income tax; Guard and Reserve drill pay is untaxed.
Military Retirement Pay
No state income tax; military retirement pay is not taxed.
VA Disability Compensation
VA disability compensation is tax-free federally and Nevada has no income tax to apply.
SCRA & Residency in Nevada
Nevada is a common SCRA domicile of choice for servicemembers because it levies no state income tax.
This is the single most misunderstood rule in military pay. Your home of record / state of legal residence โ not your duty station โ generally determines who can tax your military pay. Changing it is a deliberate act, not something that happens automatically when you PCS.
Major Military Installations in Nevada
- Nellis Air Force Base
- Naval Air Station Fallon
- Creech Air Force Base
- Hawthorne Army Depot
BAH is set by the Military Housing Area covering your duty ZIP. Verify your exact rate at the official DoD BAH lookup.
Official Sources
FAQ โ Military Pay in Nevada
Does Nevada tax my military base pay?
No state income tax, so active-duty base pay is not taxed by Nevada.
Is my BAH taxed in Nevada?
No. BAH is federally tax-free and is never counted as income for Nevada state income tax, regardless of how Nevada treats base pay.
Does Nevada tax military retirement pay?
No state income tax; military retirement pay is not taxed.
I'm stationed in Nevada but my home of record is elsewhere โ who taxes me?
Nevada is a common SCRA domicile of choice for servicemembers because it levies no state income tax.