Huge Savings on Taxes
Relocating to Nevada, particularly to the scenic Nevada side of Lake Tahoe, offers significant tax savings due to Nevada’s favorable tax environment.
Why Nevada?
Nevada, especially the scenic side of Lake Tahoe, is a top choice for wealthy individuals looking to maximize financial flexibility and enjoy a high quality of life.
Estimate Your Savings!
Curious about how much you could save? Use our Tax Savings calculator to see the potential tax benefits for high-income earners.
Has a progressive state income tax. Over $1,000,000 for single filers and $2,000,000 for joint filers, the top marginal rate is 13.3%. This includes a 1% surcharge on income over $1,000,000. These high rates significantly reduce take-home pay for high-income individuals.
Has no state income tax, allowing residents to retain 100% of their income from wages, investments, and other sources—providing substantial savings compared to California.
Long-term capital gains are taxed at ordinary income rates, reaching 13.3% for high earners, which can lead to a combined federal and state tax of 33.3%, among the highest globally. However, selling a primary residence may qualify for a federal exclusion of up to $250,000 (single) or $500,000 (married) if lived in for two of the last five years.
Imposes no state capital gains tax, meaning residents pay only the federal rate (20% for high earners). This results in significant savings for investors and real estate owners, especially those with substantial gains from stock or property sales.
Taxes all income from retirement accounts and pensions at the state income tax rate, up to 13.3% for high earners. This makes California one of the least tax-friendly states for retirees.
Does not tax retirement income, including pensions, 401(k) withdrawals, and IRA distributions—making it an ideal location for retirees seeking to maximize their retirement savings.
Property taxes are capped at 1% of assessed value at the time of purchase, with annual increases limited to 2% or the rate of inflation (whichever is lower). For a $5 million home, this translates to approximately $50,000 annually.
Nevada generally offers lower property taxes for high-value homes compared to California. Nevada’s effective rate around Lake Tahoe is roughly 0.6%. This often results in significantly lower tax bills for high-value properties in Nevada.
The state sales tax is 7.25%, with local additions pushing combined rates as high as 10.5% in some areas. This increases the cost of goods and services.
The state sales tax is 4.6%. In Washoe County, the combined rate is around 7.6%, lower than California’s highest rates—offering modest savings on purchases.
$0.53 per gallon
$0.23 per gallon
(Saving drivers approximately $180 annually for 15,000 miles at 25 miles per gallon.)
Requires a 1.1% state disability insurance (SDI) tax on taxable wages.
Does not have, further reducing the tax burden for Nevada residents.
When comparing California to Nevada for high-income single filers, significant tax savings emerge due to Nevada's lack of state income, capital gains, and retirement income taxes.
This analysis focuses on state-level differences, excluding federal taxes (e.g., 37% income, 20% capital gains) and FICA taxes (6.2% Social Security up to $168,600, 1.45% Medicare, plus 0.9% Medicare surtax for incomes over $200,000), which apply equally in both states. We also assume no itemized deductions beyond the standard deduction and no additional credits.
| Income Level | CA State Income Tax |
CA Capital Gains Tax ($100,000) |
CA Retirement Income Tax ($100,000) |
NV Taxes | Total Tax Savings in NV |
|---|---|---|---|---|---|
| $500,000 | $48,009 | $12,300 | $12,300 | $0 | $72,609 |
| $750,000 | $81,759 | $12,300 | $12,300 | $0 | $106,359 |
| $1,000,000 | $115,509 | $12,300 | $12,300 | $0 | $140,109 |
| $1,500,000 | $182,087 | $13,300 | $13,300 | $0 | $208,687 |
| $2,000,000 | $248,687 | $13,300 | $13,300 | $0 | $275,287 |
Capital Gains Tax: California taxes $100,000 in long-term capital gains at 12.3% (up to $1 million) or 13.3% (over $1 million); Nevada has no state capital gains tax.
Retirement Income Tax: Assumes $100,000 in taxable retirement income, taxed at California’s income tax rates; Nevada has no tax.
Contact me for a detailed breakdown.
Tax Benefits
The absence of state income, capital gains, and retirement income taxes makes Nevada’s Lake Tahoe communities, such as Incline Village and Zephyr Cove, ideal for high-net-worth individuals. These savings can be reinvested in luxury properties or other wealth-building opportunities.
Lifestyle
Lake Tahoe offers world-class outdoor recreation, including skiing, boating, and hiking, alongside a serene, upscale environment perfect for luxury living.
Real Estate Opportunities
Lower property taxes and no income tax make homeownership more attainable, with median home prices in Nevada ($435,000) significantly lower than in California’s ($751,000). Luxury properties in Incline Village offer stunning lake views and tax-efficient investment potential.
Proximity to California
Nevada’s Lake Tahoe is just across the border, allowing residents to enjoy California’s amenities (e.g., dining, entertainment) while benefiting from Nevada’s tax advantages.
To leverage Nevada's tax benefits, you must establish it as your primary residence and sever ties with California. This requires obtaining a Nevada driver's license, registering vehicles and to vote, and physically residing in Nevada for at least 183 days annually. California frequently audits high earners, so maintain meticulous documentation of your Nevada residency.
While Nevada offers tax savings, consider other factors like higher sales taxes (up to 8.375% in some areas) and extreme summer temperatures. California's diverse job market and cultural offerings may appeal to some, but Nevada's lower cost of living and tax benefits often outweigh these for high earners.
Consult a tax advisor to optimize deductions and ensure compliance with residency rules. A financial advisor can align tax savings with long-term wealth goals.
Relocating to Nevada's Lake Tahoe offers high-income individuals substantial tax savings on income, capital gains, and retirement. Our calculator shows potential annual savings of $72,609 to $275,287 for incomes between $500,000 and $2,000,000, making Nevada ideal for wealth preservation.
This combined with Lake Tahoe's luxury lifestyle, makes it a compelling choice; contact a local agent in Incline Village or Zephyr Cove to find your ideal property.
Frequently Asked Questions
Nevada is a major reason luxury buyers choose the Nevada side of Lake Tahoe.
These FAQs explain common Nevada tax-saving questions—clearly and simply.
Why do buyers say Nevada is “more tax-friendly”?
Many high-income buyers consider Nevada because it can reduce certain state-level tax exposure compared to California. The “why” matters most when paired with a lifestyle plan—see Lifestyle & Community.
Is this page tax advice?
No—this is educational only. Always confirm your situation with your CPA/attorney. If you want to discuss how buyers typically approach the move, schedule a consult at /contact.
Does buying a home in Nevada automatically make me a Nevada resident?
Not automatically. Residency is about facts and actions over time. If residency is a goal, we coordinate your home search and timeline using Tahoe Buyer’s Guide.
What types of Tahoe buyers benefit most from Nevada ownership?
It’s often most meaningful for high earners, business owners, and people planning a long-term move. The right neighborhood fit matters too—start with Top Neighborhoods.
How does this impact my buying strategy?
If tax planning influences where you buy, we prioritize Nevada-side options and match them to your lifestyle, access preferences, and timeline. A strong starting point is Tahoe Buyer’s Guide.
Does lakefront ownership change anything from a planning standpoint?
Lakefront is a different tier with unique scarcity and ownership considerations. If waterfront is your goal, review Lakefront Living so the plan fits both lifestyle and property realities.
How can I compare Nevada vs. California in real terms?
The best comparison is personalized: income sources, time in each state, ownership structure, and long-term intent. Pair a market view from Market Insights with a CPA’s guidance.
What’s the quickest way to start exploring Nevada-side options?
Start with your target lifestyle and budget, then we map neighborhoods and property types. Use Top Neighborhoods to narrow areas, then reach out via /contact.