Nevada Wages Below Average, Living Costs Above Average
Nevada's average annual salary is approximately $59K, which is below the national average of $65K. Average salaries vary widely across states, ranging from $47K in Mississippi to $80K in Massachusetts. Nationally, the top 10% of earners have an average annual salary of $121K.
Nevada's average annual salary places it in the mid-tier range among U.S. states, reflecting the economic dynamics of its predominantly service-driven economy. Nevada's primary sectors of hospitality and gaming typically provide below-average base wages, even amid persistent high labor demand, which hinders broader income growth. In contrast, states with robust technology and finance sectors typically rank at the higher end of the salary spectrum. Additionally, states with the highest average salaries often implement minimum wages significantly above the federal minimum of $7.25 per hour. For instance, New York’s minimum wage of $16 per hour, contributes to its high average household income of $78K, the second-highest nationally.
Nevada’s minimum wage laws, shaped by voter ballot initiatives, have progressively raised wages above the federal minimum. In 2001, Ballot Question 6 set Nevada’s minimum wage at $5.15 per hour, effective 2002, with mandated increases to $6.15 by 2004, $6.85 by 2006, and $7.25 by 2008, initially aligning with the federal rate established in 2009. In 2019, voters passed Ballot Question 1, enacting annual $1 increases starting at $8.25 in 2019, reaching $9.00 in 2020, $9.50 in 2021, $10.25 in 2022, $10.50 in 2023, $11.00 in 2024, and $11.25 in 2025 for employers offering qualifying health benefits, or $12.00 without. The current law, embedded in the Nevada Constitution, freezes automatic increases after 2024 until at least 2028, pending legislative review.
Wages often align closely with the cost of living, meaning states with the highest average wages typically have elevated living expenses, while those with lower wages have more affordable costs. Massachusetts, with the nation’s highest average wages, ranks second in cost of living, whereas Mississippi, with the lowest average wages, has the second-lowest living costs. Nevada ranks near the middle for both cost of living and average salary but leans unfavorably: its cost of living is approximately 3% above the national average, while its average annual salary is approximately 5% below the national average. This gap highlights Nevada’s challenge in aligning wages with its elevated cost of living, especially in urban hubs like Las Vegas, where living expenses have surged in the past decade.
Experts point to structural factors, including regional differences in industry composition and rising cost-of-living pressures, worsened in Nevada by an influx of California transplants who sell high-value properties, significantly inflating housing costs, especially in Clark County. This migration, coupled with Nevada’s average salary lagging below the national average, intensifies financial strain for median earners in urban centers like Las Vegas, underscoring California’s broad influence on Nevada’s economy, from housing markets to poverty levels.
