No State Of Nevada Income Tax Equals More Money For YOU
Las Vegas tax rates and the Las Vegas Property Tax rates are significant benefits of living in Nevada. However, not all tax rates in Las Vegas are the same. Each of the 3 cities in Las Vegas tax differently. Also, 1/2 of the Valley is unincorporated Clark County and not part of a city. That means Las Vegas tax rates will usually be 4 different numbers according to location.
The good news is that there is no state income tax in Nevada, no matter where you live. There is no state income tax in Nevada because tourists pay most of the state’s needs with their hotel room tax. However, The State of Nevada receives a percentage of sales tax and property tax from every transaction and property.
What Is The Sales Tax In Las Vegas
The sales tax in Las Vegas varies according to the business’ location. Technically the Las Vegas sales tax rate is between 8.375% and 8.75%. Our Rule of Thumb for Las Vegas sales tax is 8.75%. The State of Nevada sales tax rate is 4.6%, added to the Clark County rate of 3.775% equals 8.375%.
Additionally, the City of Las Vegas charges 0.5% city sales tax, the City of Henderson also charges their sales tax percentage. North Las Vegas also adds 0.5% tax too. The good news is that 1/2 of the Valley is not part of a city, including The Las Vegas Strip.
Sales tax in Las Vegas is based on the location of the business charging it, not your residence. The lowest sales tax rate in Las Vegas, 8.375%, is in the unincorporated Clark County portion of Las Vegas.
When is Las Vegas, Nevada Sales Tax Charged?
Since the City of Las Vegas tax rate is higher than Clark County, the Las Vegas Strip businesses turn down invitations to become part of the City of Las Vegas. Sales tax rates in Downtown Las Vegas are the City of Las Vegas sales tax rates of 8.75%.
Food is not taxed in grocery stores. Soda is not taxed, but alcohol is taxed in stores. All restaurants tax their food. Labor does not get taxed in Nevada.
Cities in the Valley also add their additional tax to gasoline prices. The least expensive gasoline in the entire state of Nevada is in the boonies. This is because there is a different tax rate in each Nevada county, and gas stations not in a city are enjoying the best tax rates in Nevada.
Benefits of Living in Nevada 2021
Las Vegas tax rates and other benefits of living in Nevada draw many of the 5000 people a month who relocate to the Las Vegas Valley. Even though the cost of living in Las Vegas, Nevada charts say that Nevada’s cost of living is 4% higher than the national average – don’t believe it!
The Cost of Goods in Nevada is still more affordable than in most of the country. The numbers are skewed because some of the published Las Vegas statistics include The Las Vegas Strip hotel costs, tourist activities, and pricing.
Some benefits of living in Las Vegas are reasonable utility costs, the newness of housing, and affordable housing. The Las Vegas tax structure definitely pushes Nevada to the top of the “Best Place To Live” list. Because tourists contribute significantly to the state’s coffers, residents save money. Room tax makes us smile.
Nevada is one of 6 states in the United States with no state income tax. That means that many relocating residents will receive a tax benefit of up to 24% – depending on the state and tax bracket they are leaving. Property tax depends on where you live in the Las Vegas Valley, but the difference is minimal.
The biggest benefits of living in Nevada are more than just the lack of a Nevada State Tax. We are a happy city. Surrounded by beautiful state and federal recreation areas, Nevada’s sky is blue, and the weather is mild. Traffic is minimal, and there’s always something to do!
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 Nevada Inheritance Tax after 3 years of residency
- There’s No Corporate Income Tax
- No Inventory Tax
- There’s No Franchise Tax
- Property Tax In Southern Nevada – is about 1% or less of the property’s value.
- Nevada’s average Property Tax is .77% – National average is 1.19%
- The highest sales tax In Las Vegas is 8.75%
Besides sales tax items listed above, there is a sales tax in Las Vegas for candy, medical, and medicine for people.
Property Tax In Las Vegas, Nevada
Are you 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 real property tax changed. There is now a property tax cap.
The Nevada Department of Taxation, Clark County Treasurer, and the Nevada Assessor’s Office still assess brand new home sales at approx. 1% of the sales price annually. Resale home property tax stayed the same. But a tax cap was put on future tax bills for property tax increases after an initial base is established.
Owner Occupied vs Investor Property Tax
In future years, real property tax can go up a maximum of 3% per year if the property is owner-occupied. If the property is an investment house, a 6% rate increase is possible each fiscal year. With appreciation, the tax difference can be a lot depending on the age of the home.
If the property is sold, the new owner continues at the same rate that the previous owner had until the next tax year. Then the increase rate could change depending on if the property is owner-occupied or if it’s an investment home. If you feel your tax is too high, you can have your taxes re-assessed.
If you buy a home that has not qualified for an owner-occupied property tax rate, check your bill. Residency status is reported thru escrow but they make mistakes. Call the county assessor’s office for a reassessment if there is an error.
The Downside Of Nevada’s Cost of Living
How much is tax in Las Vegas? Because Las Vegas is affordable, the real estate market and single-family home prices and tax revenue has risen. Room tax continues to go up to cover many things. With 150,000 hotel rooms filled each night, room tax adds up.
Nevada tax benefits are among the best in the country. With tourists paying room tax, residents do not have a state income tax. So, what’s the catch? Doesn’t there have to be a downside? What’s expensive in Nevada? 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. Of course, when looking at the benefits of living in Nevada- paying NO Nevada State Income Tax can be huge!
Cost Of Goods- Bad Stats Are Good For Residents
Not only are insurance statistics skewed, but the cost of living in Southern Nevada is also lower than what they say. The Cost of Goods chart doesn’t differentiate between tourist pricing and resident prices. 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 – $1 more than in the Valley, but their prices are averaged in the cost of goods chart for Las Vegas. Same thing for food. 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! They definitely skew the statistics.
Local Discounts In Las Vegas
On the other hand, we have neighborhood casinos. Food in casinos is discounted to bring you in their doors. The price of beer and cocktails almost gives me a heart attack when we visit other states. Friends compare our ads and grocery prices with their city and state and are envious.
Food and Freight in Southern Nevada is another interesting topic. I’ve written a blog about that called Food and Freight. Being such a consumable city, where food for hotel guests is trucked in daily, 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. By offering less expensive trucking rates, it’s a win-win for everyone. 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. Statistics show the police to resident ratios in the crime statistics. But, they don’t add for the 250,000 tourists on the Strip every day. When accounting for tourists, the police to 1000 residents ratio is near 1.5%.
Las Vegas should have more officers and are working hard to remedy hiring issues. Many vacationers will get drunk and get into trouble. Another problem with the crime rate statistics in Las Vegas is that they don’t account for private security personnel employed by resorts. Private Security does not make arrests.
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, was named “The #2 Safest City In The U.S.” in 2019. Search crimes in a specific area in the links listed under Buyer in our menu bar.
Moving To Southern Nevada
Many new residents are surprised after moving to Nevada how many State Parks are in the area with numerous outdoor activities. Besides homes with a low home price, areas are beautiful. Another one of the benefits of living in Nevada is a healthy lifestyle.
Weigh the pros and cons of living in a city vs. county area of the Valley. We find that the difference is minuscule. Most people choose to live where it’s convenient. Las Vegas tax rates are usually not determining factors.
Las Vegas Cost of Living Stats
Even though Las Vegas is the largest Nevada city, other large Nevada cities and towns also have very 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 former Nevada Building Engineer, a PE, CE. Kurt is 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 Las Vegas or Southern Nevada move, give Kurt a call – 702-750-7599.