Updated October 7, 2026. Quick answer: No. Article 10, Section 1, subsection 9 of the Nevada Constitution says no income tax “shall be levied upon the wages or personal income of natural persons”, so there is no Nevada income tax withholding on an IRA or 401(k) withdrawal.
Nevada withholding at a glance
| Item | What the documents say |
|---|---|
| Is it required? | No. The constitution bars an income tax on the wages or personal income of natural persons |
| Rate or amount | No rate: no personal income tax is levied |
| How to start or stop it | Nothing to file: the constitution text read names no Nevada withholding form |
| Direct rollover | The text read is silent on it; with no Nevada income tax described, there is no Nevada withholding to avoid |
| Changed for 2026? | No change stated |
What the Nevada documents say
The Nevada Legislature’s posting of the state constitution, in Article 10, Section 1, subsection 9, says that no income tax “shall be levied upon the wages or personal income of natural persons”.
The same subsection adds that taxes may be levied on the income or revenue of a business in whatever form it is conducted. That is a business tax, not a tax on a person’s retirement withdrawals.
A $50,000 withdrawal: cash in hand or a direct rollover
Take a $50,000 401(k) withdrawal paid to you. The IRS says a taxable eligible rollover distribution paid to you from an employer plan is subject to “mandatory income tax withholding (generally at a rate of 20%)”, which on $50,000 is $10,000 (computed as $50,000 times 20%) held back for federal tax. Nevada’s constitution bars the tax, so nothing is held back for Nevada: the Nevada amount withheld is $0.
The other path is a direct rollover to an IRA or another plan. For federal tax the IRS says “The mandatory withholding doesn’t apply in a direct rollover”. A direct rollover therefore has no Nevada withholding to avoid.
What the documents do not say
- The page rests on the constitutional text; it does not quote a Department of Taxation page. The text read says nothing on withholding, rollovers or any change for 2026.
Common mistakes
- Reading the business-tax sentence in the same subsection as a tax on a person’s withdrawal; it covers the income or revenue of a business.
- Looking for a Nevada withholding form; the text read names none.
Related: how Nevada taxes 401(k) and IRA withdrawals, Nevada retirement taxes, retirement withholding calculator, and retirement taxes by state.
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Answer againSources
- Nevada Constitution (Article 10, Section 1): https://www.leg.state.nv.us/const/nvconst.html
- IRS Tax Topic 413, Rollovers from retirement plans: https://www.irs.gov/taxtopics/tc413
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.