Nevada has no personal income tax. There is a sales tax of 6.875%, and counties may add another 1.25%. There is no estate tax.
There is no corporate tax in Nevada. There is, however, an annual list filing fee that ranges from $125 to $11,100 depending on the value of capitalized shares. Therefore, be sure to give your shares very low value if forming in Nevada. LLCs also pay a $125 annual filing fee for listing their member names. Both corps and LLC's are subject to a $200 annual business license fees. While Nevada corporations are gaining popularity, Nevada likely leads the US in LLC filings with it's clearly written LLC laws. More information on business formation in Nevada can be found at: http://nvsos.gov/index.aspx?page=4
Tax Tip: In states like Nevada and Delaware that charge and annual franchise tax based on share capitalization value it pays off when forming the business to have a $0.001 or even $0.0001 share value.