Great Reasons to Make Nevada Home!
Thinking about buying in Nevada for the tax benefits?
You’re certainly not alone, as many people from around the country are thinking of making Nevada their primary residence state. There are many tax advantages to living in Nevada and you should understand them before making the move. You can still have residences in other states, but basically make Nevada your main home. Be aware that income from sources in another state may incur income taxes from that state.
If you’re wondering what the tax advantages of becoming a Nevada resident are, keep reading and see what these tax-friendly policies include.
The Many Nevada Tax Benefits
- No personal income tax
- No corporate income tax
- No tax on retirement income
- No tax on social security
- No estate or inheritance tax
- Low property taxes
- No gross receipts tax
- No franchise tax
- No inventory tax
- No tax on issuance of corporate shares
- No tax on sale or transfer of shares
Retirement Tax Benefits
The Silver State is definitely tax-friendly to retirees and veterans.
- No tax on retirement income/pensions
- No tax on social security
- No tax on estate or inheritance
- No tax on military retirement income
- Low property taxes
- Veterans may benefit from property tax exemptions
How Can I Receive Nevada’s Tax Advantages?
To obtain Nevada’s tax benefits, first you need to become a resident. This is often referred to as being “domiciled” in Nevada, which is another way of saying the state is where you reside and make your primary or permanent home.
In order to be considered domiciled in Nevada, you may need to pass the “close connection test”, which is used to evaluate whether or not you’re actually seeking to become a true resident or just use Nevada for its tax advantages. This takes into account things like the state in which you hold a driver’s license, the location of your bank accounts, business and social contacts, state of employment and other factors.
Owning real estate in Nevada can be a key factor to whether or not you’re considered a resident.
