Do I Have to Pay Tax if I Sell My House for Cash in Nevada?

Selling a house—whether for cash or via a traditional financing arrangement—often triggers questions about taxes. While each situation can be different, there are a few core considerations to keep in mind if you’re selling your home in Nevada. Below, we’ll walk through the main tax implications, including capital gains and potential transfer taxes, and highlight what makes Nevada a bit different from other states.

Disclaimer: This article provides general information and is not a substitute for professional tax or legal advice. Always consult a licensed tax professional or attorney for guidance on your specific circumstances.

Federal Capital Gains Tax

Regardless of where you live in the United States, the Internal Revenue Service (IRS) may require you to pay capital gains tax on any profit you make from selling a house. The fact that you sold for cash doesn’t affect whether or not you owe federal taxes; what matters is how much profit (gain) you made on the sale.

Primary Residence Exclusion

If the property you sold was your primary residence, you might qualify for what’s known as the Section 121 Exclusion. Under this rule:

• If you’re single, you can exclude up to $250,000 of profit from capital gains tax.
• If you’re married filing jointly, you can exclude up to $500,000 of profit.

Eligibility Requirements:

• You must have owned the home and used it as your primary residence for at least 2 of the last 5 years before the sale.
• You typically can only claim this exclusion once every two years.

Short-Term vs. Long-Term Capital Gains

• If you owned the property 1 year or less, any profit is considered short-term capital gains and is taxed at your ordinary income tax rate.
• If you owned the property longer than 1 year, any profit is considered long-term capital gains, which usually comes with a lower tax rate.

Selling “for cash” doesn’t change your federal capital gains obligations. The calculation and applicable rates remain the same as if the buyer had financed the purchase with a mortgage.

Nevada State Taxes

Nevada is one of the few states with no state income tax. This means you will not owe any state-level income tax on the profit from selling your house (whether for cash or otherwise). However, you should still be aware of other transactional taxes and fees.

Real Property Transfer Tax

While Nevada does not impose a state income tax, it does have a Real Property Transfer Tax (RPTT) that applies when you sell real estate. This tax is typically based on the sale price of the property (not just the capital gain). The exact amount can vary by county.

• Example (Clark County): The rate is often cited as $5.10 per $1,000 of the value or sales price of the property, with additional increments or county-specific rates possibly applying.
• Responsibility: Who pays this tax (the buyer or seller) can depend on local custom or negotiation in the purchase agreement.

Check with a local real estate agent or attorney in your specific county to confirm the current rate and how it’s typically handled in your area.

Other Tax Considerations

Remember that you’re responsible for property taxes until the date of sale. Often, prorated taxes are handled at closing, ensuring each party pays their fair share for the portion of the year they owned the property.

If your house was used as a rental property at any point, you may need to account for depreciation recapture, which the IRS taxes at 25% of the portion of the gain attributed to depreciation deductions you took while renting out the property. 

Those selling investment properties in Nevada may consider a 1031 exchange to defer capital gains by reinvesting proceeds into another “like-kind” property. However, primary residences typically don’t qualify for 1031 exchanges. 

Does Selling for Cash Affect My Tax Liability?

Short Answer: No—the tax rules regarding capital gains and other real estate taxes don’t hinge on whether you received the proceeds in cash or through a financed transaction. The critical factors remain:

1. How long you owned the property
2. Whether it was your primary residence or an investment
3. How much profit (gain) you realized on the sale

Any difference you might experience is mainly logistical: a cash sale can close faster, potentially changing which tax year the sale occurs in. But the type of sale does not inherently alter the tax obligations themselves.

Sell Your Nevada House for Cash! 

In Nevada, you won’t owe any state income tax on the sale of your house. However, federal capital gains rules still apply, and real property transfer taxes in your county may come into play. The fact that you sold your house for cash doesn’t directly impact the taxes you owe—it’s the profit, ownership duration, and status as a primary or investment property that really matter.

For personalized guidance, always consult with a tax professional or real estate attorney. In the meantime, request your free cash offer from We Buy Any Vegas House. As our name implies, we will buy ANY house, regardless of its condition. Our offers are fair and backed by our cash buyers, who have the funds on hand to purchase your home. Contact us today to learn more!