Nevada’s Tax Scheme
If considering migration from California, naturally the most logical question that follows is: ” To where?” As many of our clients choose Nevada, so many that we opened a new office in Nevada and joined the Las Vegas Global Economic Alliance, we prepared the following summary of Nevada’s tax scheme.
Nevada does not tax personal income.
Nevada has sales tax that ranges from 6.85% to 8.1% depending on the county.
Nevada has a property tax that is amongst the lowest in the nation. It varies by county but the average tax rate is 0.77% of the assessed value of the home, and assessed values are 35% of the taxable value, which is generally the fair market value of your property.
Nevada’s corporate tax is called the Commerce Tax, and only applies to businesses with gross revenue in excess of $4,000,000.00. The tax rate varies depending on your industry from 0.051% to 0.331%.
Nevada also has a payroll tax that applies to businesses that pay at least $50,000.00 per quarter in wages. The payroll tax rate is 1.475%.
The drastic difference between California taxes and Nevada taxes was masked, in prior years, through the use of the unlimited state and local taxes (” SALT”) deduction on your federal return. In essence, the federal government subsidized your California taxes. But the 2017 Tax Cuts and Jobs Act changed all that by capping your SALT deduction at $10,000.00. You’ll notice this change on your federal return, but the truth is your finally suffering the blunt impact of California taxes-taxes that are severely less in the State of Nevada.