Updated October 7, 2026. Quick answer: No. The Nevada Department of Taxation says the state “does not impose a state income tax on individuals”, so a TSP withdrawal by a Nevada resident is not taxed by the state.
Nevada TSP withdrawal tax treatment at a glance
| Item | What the documents say |
|---|---|
| TSP withdrawals | Not taxed by Nevada: the documents read describe no individual income tax that applies to a withdrawal |
| FERS annuity | The documents read do not treat a FERS annuity differently from a TSP withdrawal; with no individual income tax, neither is taxed by Nevada |
| Rate or limit printed | No rate: no individual income tax |
| Where it is reported | Nothing to report on a Nevada return |
| Source | Nevada Department of Taxation |
What the Nevada documents say
The Department’s page on income tax in Nevada says the state “does not impose a state income tax on individuals”, and that residents “do not pay state tax on income earned from salaries”.
The page does not name retirement income or the Thrift Savings Plan; it describes wages and similar pay. The conclusion for a TSP withdrawal follows from the absence of any individual income tax.
A worked example at $30,000 of withdrawals
An illustration, not a return: a Nevada resident who takes $30,000 from the TSP in 2026 owes $0 of Nevada individual income tax on it, on the documents read. Federal income tax still applies and is outside this page.
If you moved to Nevada or left it
The rules above are Nevada’s own, for a resident. Federal law limits what a state you have left may do: “No State may impose an income tax on any retirement income” of someone who is not a resident or domiciliary of that state, as 4 U.S.C. 114(a) puts it. The statute defines retirement income by reference to plans described in the Internal Revenue Code; this page does not decide whether a particular TSP payment meets that definition. If you moved during the year, check each state’s page and return. See CMG’s TSP withdrawal options and FERS, TSP and Social Security sequencing pages for the federal side.
What changes in 2026
The documents read for Nevada announce no change for 2026 that is specific to TSP withdrawals. The instructions read are for tax year 2025, the newest archived; check the state agency for the 2026 forms when they are published.
What the documents do not say
- The Department’s page speaks of salaries, wages and similar pay and does not name retirement income or the TSP.
Common mistakes
- Assuming the absence of a Nevada income tax removes the federal tax on a TSP withdrawal; it does not.
- Assuming the answer for one state applies to another, or that the state answer changes the federal tax on the withdrawal.
Related: TSP withdrawal options, state tax on TSP withdrawals, Nevada retirement taxes, how Nevada taxes pensions, and how Nevada taxes 401(k) and IRA withdrawals.
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Answer againSources
- Income Tax in Nevada: https://tax.nv.gov/about-nevada-department-of-taxation/income-tax-in-nevada/
- 4 U.S.C. 114, Limitation on State income taxation of certain pension income (U.S. Code, GovInfo): https://www.govinfo.gov/content/pkg/USCODE-2023-title4/html/USCODE-2023-title4-chap4-sec114.htm
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.