CA vs. NV
Recently, a couple sold this 1,900 SF attached house in Laguna Niguel for 950k
And then they bought this gorgeous 1,943 SF house, in a beautiful 55+ community in Reno, NV
for 427k! It is new construction and the 427k purchase price included 110k in builder upgrades!
And it has killer Sierra Mountain views
For roughly half the price, they now have a brand new home with loads of upgrades, spectacular mountain views, 40 minutes from Lake Tahoe. They have escaped to a place with a much better quality of living and have been joined by literally dozens of others in just the last two years who have liberated themselves from the insanity of California by moving to the Reno area.
Taxes | State Income Tax Comparison
California State Income Tax Brackets:
1% on $7,749 of Taxable Income.
2% on Taxable Income between $7,750 and $18,371.
4% on Taxable Income between $18,372 and 28,995.
6% on Taxable Income between $28,996 and $40,250.
8% on Taxable Income between $40,251 and $50,869.
9.3% on Taxable Income between $50,870 and $259,844.
10.3% on Taxable Income between $259,845 and $311,812.
11.3% on Taxable Income between $311,813 and $519,687.
12.3% on Taxable Income $519,688 and above.
If your income in California is $80,000, you will pay $7,440 a year in California state income tax. Plus, the $10,000 cap on the state and local tax (SALT) deduction will cost many Californians thousands in additional federal income tax.
Nevada has no state income tax, so those who move to Nevada from California save thousands a year in taxes alone. Of course the lower cost of living in Northern Nevada means significant additional savings as well.
Property Tax Comparison
Nevada’s property tax rates are among the lowest in the U.S. The state’s average effective property tax rate is just 0.77%. That is well below the national average of 1.19%. The average property tax rate in Washoe County (where Reno is located) is .888%. The property tax on a home with an assessed value of $500,000 is $4,440. Keep in mind, the assessed value may be thousands less than what you paid for the property. And Nevada's tax abatement law protects homeowners from sudden spikes in their property taxes. A similar law in California (Proposition 13) which has been effect for 40 years, is now under attack. Repeal of Proposition 13 will cost California homeowners significantly more in property taxes.