Nevada Landlord Taxes: What Las Vegas Rental Owners Should Know

Nevada has no state personal income tax, so rent from a Las Vegas home is taxed only at the federal level (Nevada Constitution, Article 10, Section 1). What does change when a home becomes a rental is the property tax cap: an owner's primary residence gets a 3% cap on yearly tax bill increases (NRS 361.4723), while a rented home moves to the general cap, which is 8.0% in Clark County for fiscal 2026-27 (Nevada Department of Taxation). Federally, rental income and expenses go on Schedule E, the building is depreciated over 27.5 years, and that depreciation is taxed at up to 25% when you sell. Home365, a property management company serving the Las Vegas valley, put this guide together from primary sources for owners deciding whether to rent. It is general information, not tax advice, so talk to a tax professional about your own situation.

Las Vegas landlord taxes at a glance (2026)

Sources as listed in each row. Nevada statutes as published by the Nevada Legislature (revised April 15, 2026, through the 2025 session). Summary by Home365. General information only, not tax advice.

Nevada has no state income tax on rental income

Article 10, Section 1, subsection 9 of the Nevada Constitution states that no income tax shall be levied upon the wages or personal income of natural persons. The Nevada Department of Taxation says the state does not impose a state income tax on individuals. For an individual who owns a Las Vegas rental, that means no Nevada income tax return for the rent. The federal return still applies. If you live in another state, ask a tax professional how your home state treats Nevada rent.

What changes on your property tax bill when the home becomes a rental

Nevada does not cap the value of a home. It caps how much the tax bill can rise from one year to the next, through three partial abatements in NRS Chapter 361.

• Primary residence: 3% cap (NRS 361.4723). It applies to a single-family residence that is the owner's primary residence. The statute defines a primary residence as one the owner designates as such in Nevada and that is not rented, leased, or otherwise made available for exclusive occupancy by anyone other than the owner and the owner's family. Only one property in the state can be a primary residence (Clark County Assessor).
• Everything else: the general cap (NRS 361.4722). Each county's cap is the greater of its 10-year average growth in assessed value or twice the prior year's CPI increase, never more than 8%. The Clark County Assessor describes this as a cap of up to 8% for residences that are not owner occupied. For fiscal 2026-27, the Department of Taxation's final figure for Clark County is 8.0% (moving average 8.1%, twice CPI 5.4%).
• Low-rent rentals: 3% cap (NRS 361.4724). It applies if the rent collected from each tenant does not exceed the HUD fair market rent for the county. The Clark County Assessor's 2026/2027 limits are $1,146 for a studio, $1,270 for 1 bedroom, $1,504 for 2, $2,139 for 3, $2,456 for 4, and $2,824 for 5 bedrooms. The Assessor mails rental affidavit letters each April or May to owners of duplexes, triplexes, fourplexes, and apartments. If you rent a single-family home at or below these limits, ask the Assessor's Office how to claim it.

Here is what the difference means in dollars. On a home whose tax bill was $2,000 last year, a 3% cap limits this year's bill to $2,060, while an 8% cap allows up to $2,160, assuming no new construction or other changes to the property. Over several years of rising values, the gap compounds. Across the whole county, the Clark County Assessor estimated 2025-26 taxes at $3.39 billion with the caps, against $4.51 billion as assessed without them.

Timing and paperwork. Any recorded ownership document removes the owner-occupied 3% abatement, and the Assessor's Office mails new postcards after July 1 to properties whose ownership or document number changed. If you get one and the home is still your primary residence, the Assessor asks you to sign and return it as soon as possible. When a home stops being your primary residence because you rent it out, contact the Assessor's Office at (702) 455-3882 to update the record. Claiming the 3% cap you aren't entitled to, with intent to evade tax, carries a penalty of three times the tax deficiency on top of the tax due (NRS 361.4735). If you disagree with how a cap was applied, a written petition for review goes to the county assessor by June 30 of the fiscal year it applies to (NRS 361.4734).

How the Clark County tax bill is calculated

Nevada assesses property at 35% of its taxable value (NRS 361.225), and the tax rate is applied to that assessed value. The total levy for all public purposes is limited to $3.64 per $100 of assessed value, with some exceptions set by law (NRS 361.453). Rates differ by taxing district inside the county. The Clark County Assessor reports a weighted average rate of $3.0466 per $100 of assessed value for 2025-26. The caps above then limit how fast the bill can grow. For your parcel's exact rate and bill, check the Clark County Treasurer.

Federal tax basics for a Las Vegas rental

• Schedule E. Rental income and expenses are reported on Schedule E (Form 1040), and depreciation on Form 4562 (IRS Publication 527).
• Rental expenses. Publication 527 lists expenses such as advertising, cleaning and maintenance, insurance, legal and professional fees, management fees, mortgage interest, repairs, taxes, utilities, and depreciation.
• Repairs and improvements are treated differently. Repairs and maintenance are generally deductible. An improvement, one that adds a betterment, restores the property, or adapts it to a new use, is capitalized and depreciated. Publication 527 gives a new roof and a kitchen modernization as examples of improvements.
• Depreciation over 27.5 years. Residential rental property is depreciated over 27.5 years under the general depreciation system, using the straight line method and a mid-month convention. Land is not depreciated (IRS Publication 527).
• Allowed or allowable. Your basis goes down by the depreciation you deducted or could have deducted, even if you never claimed it (IRS Publications 527 and 551). Skipping depreciation does not avoid the tax on it at sale.
• Passive activity rules. Rental real estate is generally a passive activity. Publication 527 describes a special allowance of up to $25,000 of rental loss for owners who actively participate, which shrinks when modified adjusted gross income is above $100,000 and is gone at $150,000.

Taxes when you sell, exchange, or inherit

• Depreciation is taxed back at sale. The part of a long-term gain on real property that comes from depreciation is unrecaptured section 1250 gain (IRS Publication 544), taxed at a maximum 25% rate (IRS Tax Topic 409).
• The home-sale exclusion has a clock. If you owned the home and lived in it for at least 2 of the 5 years before the sale, IRS Publication 523 describes an exclusion of up to $250,000 of gain ($500,000 for most married couples filing jointly). Renting it out for more than three years after you move out means you no longer meet that test. Depreciation taken after May 6, 1997 can't be excluded, and gain tied to periods of nonqualified use after 2008 may not be excludable either, with exceptions such as time after you moved out within the 5-year window (IRS Publication 523).
• A 1031 exchange applies to rentals, not your home. Since 2018, section 1031 applies only to real property. Replacement property must be identified within 45 days and received within 180 days or by your return due date including extensions, whichever is earlier, and the exchange is reported on Form 8824. A home used solely as your personal residence doesn't qualify (Instructions for Form 8824).
• An inherited home starts at its value on the date of death. Your basis is generally the fair market value on the date of the owner's death, or on the alternate valuation date if the estate chooses it (IRS Publication 551). So selling soon after inheriting usually means a small taxable gain.

For a worked comparison of rent versus sale proceeds on a median Las Vegas home, see our rent or sell guide. For current home prices, rents and vacancy, see our Las Vegas Rental Market Report.

What to bring to your tax professional

• The date you moved out and the date the home was first available for rent.
• Your purchase closing statement and records of improvements, to set the depreciable basis and separate land from building.
• A year of rent received, security deposit records, and every rental expense with receipts.
• Your Clark County tax bill, showing which cap applied.
• If you plan to sell: your move-out date, total depreciation claimed, and whether a 1031 exchange is on the table before you list.

Where Home365 fits

Home365 is a property management company for rental homes across the Las Vegas valley. Home365 does not give tax advice; your tax professional handles the return. Home365 handles leasing, tenant screening, maintenance, and rent collection. Both plans are priced as a percentage of rent. On Traditional, you pay for repairs as they come up. Profit Protect includes in-home repairs and a rent guarantee in one all-inclusive monthly rate, after a waiting period and subject to annual limits and exclusions in the agreement. Terms and conditions apply. For what management costs in the valley, see our Las Vegas property management cost guide, and if your home is in an HOA, see our guide to HOA rules and your Las Vegas rental.

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