Besides luxurious housing and an abundance of world-class amenities, what attracts people to Las Vegas are the low tax rates the residents of this state have the privilege to enjoy! The state of Nevada ranks number five for the lowest state and local tax in the United States, making it a great location for those looking to cut their expenses in terms of tax payments.
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The tax levels in Nevada are even lower than those of Utah and Arizona. A household with median yearly income pays only a bit over 4000$ a year in taxes. While it ranks great compared to other states when it comes t income tax and state and local taxes, the state ranks 12 for sales and excise taxes and it is quite average in terms of real estate and vehicle taxes.
However, Nevada is still one of the most desirable states to live in. Before we get in-depth on why Las Vegas in particular has become the ultimate migration destination in the United States, let’s cover the statistics:
- The average annual state and local tax equals to 4161$
- The effective state and local tax equals to 7.72%
- The difference between state and national average is 27.86%
No one likes spending their hard-earned money on taxes, especially when the rates equal to couple thousands of dollars per year. Tired of high taxation, people from all over the United States are looking for places to move where they can save some money on taxes.
The residents of the Nevada state find it easier to control their finances without having to spare too much money for taxes. The absence of high taxes also allows the residents of Las Vegas to make savings and be able to afford better housing options than outside of the state. All this is possible because the tax level in Las Vegas has an effective rate of 1$ per 100$ of assessed value.
Speaking of assessed value, the property assessment process consists of the county Assessor Office, which determines the value of the property, while the Assessor has to make a list of all properties in the specific county and send that data to the County Treasurer. The County Treasurer further determines the specific taxes and sends outs tax bills, as well as collects receipts. It is important to mention that each property is assessed at 35% of its current appraised value. When calculating each tax, the amount of public services is also taken into consideration.
On top of all that, Nevada taxes only 37% of its goods for sale, which allows the residents to make even more savings. All this is possible because the general fund of the state is supported mainly through taxation of the gambling industry. As the centerpiece of gambling activities in the United States, Las Vegas collects billions of dollars in gambling taxes and additional gambling fees per year.
Therefore, the gambling industry tax lifts a heavy burden off the residents of Las Vegas, enabling them to save more of their income. An average household with an income of 25 000$ saves 266$ per year in taxes, whereas households with incomes over 150 000$ per year can save over 6300$ in tax savings, which makes Las Vegas one of the most-cost effective locations to live in!
However, the recent bill the state senate has put forth, SB411, may cause the cost of owning property in the state of Nevada to increase. With this bill the senate seeks to improve the state’s education infrastructure, as the majority of Nevada’s educational facilities require some sort of repair work or expansion. With more student enrollments than ever, the educators are struggling to make the best out of the educational facilities they have at hand.
With the SB411 bill, the senate plans to increase property taxes in order to finance the constructions of new educational facilities as well repairs of the current ones. Property owners in Las Vegas are curious to know in which direction their tax paying future will go. Even if the property taxes increase due to the passage of the above mentioned bill, Las Vegas and the state of Nevada in general will still have the lowest cost of living in the whole United States.
The citizens of Las Vegas don’t have to carry the burden of personal income tax like in most other cities, which is another reason why Americans are flocking to this area. Furthermore, the ability to make savings and afford better housing for the same amount of money that would get you an average home outside Nevada makes for enhanced quality of living in this area. With such a low cost of living, the state of Nevada enables the residents to afford the ongoing property tax costs of expensive homes, meaning most people can afford their dream home in this part of the US.
It is only logical to make the prediction that more and more people will seek properties in Las Vegas and other cities in Nevada, where they will pay less for taxes and be able to afford a more luxurious life for themselves and their families. All together, Las Vegas makes for a desirable location because of the lower taxes in general and the absence of the personal income tax. The citizens of this area can enjoy an upscale lifestyle without having to spare large portions of their incomes for tax purposes. If you’re planning on investing in real estate properties or settling for a new home outside your state, Las Vegas is a great option to consider. Not only that you won’t have to carry the same burden of high taxation but your savings will allow you to enjoy a more luxurious lifestyle, focus on travel and leisure or even further invest into new business opportunities!