Financial Benefits of Moving to Nevada
It’s not just Las Vegas that the state of Nevada is known for, although the idea of living in one of the nation’s top entertainment centers is an exciting one. Beyond that, Nevada has beautiful desert landscapes, a growing job market and endless outdoor activities to indulge as well as having great tax benefits for its residents.
Living in Nevada
People choose to reside in Nevada for a variety of reasons, from the desire to live in a desert oasis to a need for a tax-friendly home. Whatever purpose has driven you to look into this, the facts remain the same—Nevada is one of the few tax-friendly states in the country. Being eligible for those benefits requires more than just property ownership.
Establishing a domicile is the first step toward gaining state-related tax advantages. If you’re someone who owns multiple homes in different states and travels often, you’ll need to prove to Nevada that you’re an official resident. This can be accomplished through a variety of strategies, including updating your permanent address on items such as your mail, driver’s license and car title. You’ll also want to take steps to show your dedication to the state, such as changing your voter registration or applying for a library card. Learn more about the specifics in our piece on relocating to a tax-friendly state.
Income Tax and More in Nevada
Relocating to Nevada has pros and cons, depending on personal preferences for your living environment, but the tax advantages this state offers its residents definitely makes it an attractive place to head.
Nevada is one in a handful of states with no state income tax. You read that right! The Nevada state income tax is zero, which means you keep more of what you earn. This is also something that follows you to your retirement if you choose Nevada as your state of residence, saving you from paying income taxes on your Social Security benefits, IRA or 401(k) withdrawals and pension payouts.
Because the state relies on the huge amounts of money from the tourism and entertainment industry, it’s able to cut residents some slack when it comes to taxes. Nevadans also aren’t required to pay taxes on gasoline, groceries or prescription medicine, and the amount they pay in sales taxes is relatively low at just 4.6%, plus the local tax.
Those who own property have not been excluded from this. While Nevada depends on property taxes to fund their infrastructure, you’ll find that the state has one of the lowest property tax rates in the country, sitting at just 0.53%, on average.1 Does that make you eager to learn more? Our guide on relocation advantages in income tax-free states covers the basics.
If you are considering a move to Nevada, be sure you understand what you need to do to establish domicile in Nevada by downloading our checklist.
Other States to Consider
1Nevada Property Tax Calculator
The views expressed are for commentary purposes only and do not take into account any individual personal, financial, legal or tax considerations. As such, the information contained herein is not intended to be personal legal, investment or tax advice. Nothing herein should be relied upon as such, and there is no guarantee that any claims made will come to pass. The opinions are based on information and sources of information deemed to be reliable, but Mariner Wealth Advisors does not warrant the accuracy of the information.
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