Relocation Guide: Nevada Tax Advantages
Living in Nevada, specifically in the Reno area, comes with a variety of benefits. From its close proximity to the blue waters of Lake Tahoe and the ski resorts to the never-ending list of events and activities going on around town, there’s a lot that already draws in new residents. But, one thing that shouldn’t be overlooked is all of the Nevada tax advantages.
No State Income Tax
To enjoy no state income tax, Nevada has to be your central place of residence, but you can do business and have residences in other states. Nevada just needs to be the state you have the closest ties or spend the most time out of the year. Becoming a Nevada resident will help you avoid state income taxes except for income that arises from sources within another state.
No Personal Income Tax
Many states force residents to pay taxes on income they’ve earned, and for high earners, this can result in high taxes. Nevada doesn’t tax an individual’s income earnings, allowing individuals to keep more of their hard-earned income in their pockets.
No Corporate Income Tax
A corporate tax is a tax on the profits of a corporation. The taxes are paid on a company’s taxable income, which includes revenue minus the cost of goods sold, general and administrative expenses, selling and marketing, etc.
No Franchise Tax
Many states impose a separate tax on at least some businesses, called a franchise tax. Simply put, this is a tax the state imposes for the privilege of doing business in the state. Franchise taxes are generally either a flat fee or an amount based on a business’s net worth.
While these are four of the largest tax advantages to calling Nevada home, there are more benefits to consider, including:
- No inventory tax
- No tax on issuance of corporate shares
- No requirements of shareholders and directors to live in Nevada
- No tax on sale or transfer of shares
- No initial or minimum capital requirements
- Anonymity of owners
- Low property taxes
- Business-friendly environment
There’s a lot to love about being a Reno resident, including the Nevada tax advantages you get to benefit from. If you’re hoping to move somewhere that will allow you to keep more money in your pocket and provide you with a great work-live-play atmosphere, Northern Nevada may be the right fit for you. Contact the David Morris Group to learn more about relocating to Reno. We’re always happy to share our knowledge of the area and the real estate market with you!