Why Living In Las Vegas is Great For Your Taxes

Posted by on Apr 21, 2017 in Advice From the Experts, Legal, Tax Litigation |

There are so many reasons to live in Las Vegas. Underneath its glorious entertainment façade, Las Vegas which is under the state of Nevada, also boasts itself for being one of the nine states that do not collect income tax from its residents. The other eight states include Alaska, Florida, South Dakota, Texas, Washington, Wyoming, and Tennessee. It doesn’t mean, however, that the residents of these states do not pay taxes altogether. The state needs funds to finance their social and economic programs but in these states, the taxes are being collected in other forms.

Being free from paying income taxes, Las Vegas is an ideal place to consider during retirement. It is also a better place to find a job since your take home pay will be bigger because it is not subjected to tax. And since Las Vegas is a wealthy city with all its entertainment establishments and business centers, there are more chances that you can find a job here that pays better than the rest of the states.

Many wealthy individuals also live in Las Vegas. Las Vegas has more to offer than the Las Vegas Strip. There are many beautiful neighborhoods and communities dotted with lavish homes. The golf courses surrounding these communities also makes it a great city for retirees to live in. The luxury homes in Las Vegas, Nevada are fairly priced, so you’ll feel like you’re getting your money’s worth.

Being the gambling and tourism capital of the world, Las Vegas has been attracting businessmen and tourists every year. In recent years, its revenue from non-gambling tourism like shows, nightclubs, retail and electronic dance music has increased. The reason for the influx of business and tourism in this area is contributed to its no income tax policy for businesses and resident. In lieu of income tax, businesses are only being subjected to a business tax of only 1.17% (2% for a financial institution) on their employees’ salary after deducting healthcare expenses.

Again, Nevada also needs funds to finance its programs and them way to do that is by putting tax through sales and services around 6.85%.  This is where 72% of Nevada’s revenue is coming from. Under the Tax Foundation’s 2011 report, the state ranks 15th lowest out of all 50 states when it comes to average per-capita and local tax payment.  This is good news for you since most of the taxes are coming from sales and services that most tourists would shoulder instead of you paying for income tax.

If there is a downside to living in a state with no income tax, it is the above-average sales tax that you also need to face every day. But this can easily be resolved by wise decision-making and creating a budget for only the important things that you will need. You can start making a “to-buy” list with the salary you receive free from hefty deduction of income tax. You will agree if I say that it is easier to make a budget from a bigger capital than a limited income.