No State Income Tax Equals More Money
The benefits of living in Nevada are about being able to take advantage of the Las Vegas tax rates. Las Vegas tax rates are not all the same. Since Las Vegas is actually 3 cities and 1/2 unincorporated Clark County, tax rates in Las Vegas are 4 different numbers. The good news is that Nevada has no state income tax no matter where you live. Sales tax also varies but is around 8.375% -8.75% depending on where you are living in Nevada.
The least expensive gasoline in the entire state is in the boonies, next to a few gold mines in the middle of nowhere. This is because there is a different tax rate in each Nevada county and places not in a city are enjoying the best tax benefits in Nevada. Each county in Nevada will charge taxes based on the State of Nevada tax rate added to the tax rate for their county then there’s more added on for “city tax rates” if they are in a city.
To confuse you more, taxes are different in each of the Las Vegas cities – The City of Las Vegas, The City of Henderson, and the City of North Las Vegas. And lower in half of Las Vegas – in the unincorporated Clark County portion of Las Vegas. Since City of Las Vegas tax rates are higher than Clark County, The Las Vegas Strip turns down invitations to become part of the City of Las Vegas. Downtown Las Vegas in in the City of Las Vegas paying the higher City of Las Vegas tax rates.
Benefits of Living in Nevada 2021
Las Vegas tax rates and Nevada tax benefits are what draw many of the 5000 people a month who relocate to the Las Vegas Valley. Even though the cost of living in Nevada is said to be 4% higher than the national average, don’t believe it! Nevada is still more affordable than most of the country. The numbers are skewed because Las Vegas numbers include The Las Vegas Strip and tourist pricing.
Nevada and the Las Vegas Valley have reasonable utility costs and affordable housing. But it’s definitely the tax structure that pushes Nevada to the top of the “Best Place To Live” list. Because tourists contribute greatly to the state’s coffers, residents save money. Room tax makes us smile.
The biggest benefit of living in Nevada is the lack of a Nevada State Tax. Nevada is one of 6 states with no state income tax which means that most relocating residents receive a tax benefit of up to 24% depending on the state they are leaving’s the state income tax. Las Vegas has the Clark County sales tax rate of between 8-5% – 8.75%. Property tax depends on where you live in the Las Vegas Valley, but the difference is minimal.
Specific Nevada Tax Benefits
Nevada’s tax benefits are great for families, businesses, and retirees. Here’s why:
- Zero – No Nevada State Income Tax
- No Inheritance Tax
- There’s No Corporate Income Tax
- No Inventory Tax
- There’s No Franchise Tax
- Property Tax In Clark County- is about 1% of the property value
- Nevada’s average Property Tax is .77% – National average is 1.19%
- Sales Tax In Las Vegas, Henderson, and N. Las Vegas is 8.375%
Nevada State Sales Tax Rate is 4.6% added to the Clark County rate of 3.775% equals 8.375%. Other counties are usually lower. No Sales Tax on food, candy, medical, or medicine for people
Property Tax In Las Vegas, Nevada
Moving to Las Vegas or Southern Nevada? Choosing between a brand new construction home or an older home has a big effect on the property tax you’ll pay. About 10 years ago the way Nevada assesses property tax changed. It was decided that brand new home sales would continue to be assessed at approx. 1% of the sales price annually. Resale home property tax stayed the same. But a cap was put on tax increases.
In future years, property tax could go up 3% if the property is owner-occupied. If the property is an investment house, a 6% rate increase could happen. If the property is sold, the new owner continues at the same rate that the previous owner had until the next year. Then the increase rate could change depending on if the property is owner-occupied or if it’s an investment home.
The Downside Of Nevada’s Cost of Living
Nevada tax benefits are among the best in the country. With tourists paying room tax, residents do not need to pay state income tax. What’s the catch? Doesn’t there have to be a downside? OK, here’s some truth:
Car Insurance Costs
Because 250,000 tourists visit The Las Vegas Strip each weekend, their statistics are added to the 2 million residents’ stats when they crash their cars or commit a crime. Drunk drivers also negatively affect Nevada insurance rates.
Rates are calculated using the city’s population divided by the number of accidents and the costs of those accidents. Because Las Vegas’ 250,000 tourists each day don’t count in the population numbers, we have to absorb their accident numbers in our ratios. Bottom Line- Las Vegas Valley residents pay higher car insurance rates.
The higher insurance rates aren’t as bad as they could be. We pay around $100 a month per car for 2 cars for 2 people. But hey, car registration is lower than California’s, and gas costs less than many states. And we have big benefits when living in Nevada- we pay NO Nevada State Income Tax!
Cost Of Goods- Bad is Actually Good For Residents
Not only are insurance statistics skewed, but the cost of living in Southern Nevada is also lower than what they say. Rent on the Las Vegas Strip is high. Therefore, all consumable goods on the Strip are priced higher.
Gas on the strip can be $.50 more than in the valley, but their prices are averaged into the charts. Groceries are the same thing. Due to fresh produce, meat, and seafood arriving at hotels daily, we always have fresh food for good prices everywhere in the city. However, those gourmet restaurants that tourists eat in can be rather pricey which skews the statistics.
Food and Freight in Southern Nevada is another interesting topic. I’ve written an entire blog about that called Food and Freight. Being such a consumable city, where food for hotel guests is trucked in, many trucks leave empty. Empty trucks raise the cost of food.
Wanting to fill trucks with out-going products Las Vegas has attracted many high freight-consuming industries to take advantage of less expensive trucking rates. These companies include Ben and Jerry’s, Big O Tires, Home Shopping Network, Ocean Spray Cranberries, and Sephora to name a few.
Crime Rates In Las Vegas
The Las Vegas Metropolitan Police Department covers much of the Las Vegas Valley neighborhoods. hen statistics show the police to resident ratios with crime statistics, they don’t add for the 250,000 tourists every day either. Many vacationers sometimes get drunk and get into trouble. The problem lies in the number of private security personnel that the resorts employ. That count is not reflected in the police count.
When you see crime stats about Las Vegas, know that both the police and crime rates are not the city’s reality. Crime rates are higher during certain conventions, events, and concerts. Henderson which is 5 miles from The Strip has been named the #2 Safest City In The U.S. Search crimes in a specific area in the apps listed under Buyer in our menu bar.
Even though Las Vegas is the largest Nevada city, other large Nevada cities and towns have similar skewed cost of living and crime rates. Large tourist cities in Nevada, like Laughlin, Lake Tahoe, and our Biggest Little City, Reno, also get hit particularly hard.
The Nevada tax rates are certainly attractive. However, there’s a “team” spirit that makes us want to stay and be a part of this incredible energy. Having called Las Vegas home for over 25 years, we’ve seen a lot of changes and growth. What makes us proud of the community are the creative problem-solving companies and people that also call Southern Nevada home.
This blog was written by Kurt Grosse. Kurt is a 25 year Las Vegas Top-Producing Realtor and Retired Building Engineer (P.E., C. E.) known by his clients as “The Protector.” With how quickly homes are built in Southern Nevada his services can be invaluable. If you’re thinking about a move to Southern Nevada, give Kurt a call – 702-750-7599.