LAS VEGAS – The Private Bank by Nevada State Bank released the latest edition of its High Net Worth Report series today. Issue 2 of 2020 outlines the tax benefits for high net worth households in Nevada. Due to the overwhelming share of new residents from California and the recent relocation of the Raiders football team, the tax advantages of living in the Silver State are illustrated by a hypothetical professional football player in this report.
Highlights from the report include:
· In Nevada, a household with an annual income of just over $600,000 can expect to save an estimated $70,000 each year in total taxes paid compared to California.
· A majority of the relative tax burden for households in California is related to state income taxes. By living in Nevada, which has no state income tax, high net worth households can save thousands of dollars a year. For a player in this example, earning the NFL league minimum salary of $610,000 per year, the savings in income taxes alone equate to more than $57,000.
· Nevada’s property tax rates are generally higher than California’s, but that difference is largely diminished since Nevada assesses taxes based on 35% of a property’s taxable value, compared to 100% in California. Comparable homes in Nevada are also significantly cheaper. The combination of these two factors means the hypothetical Raiders player could save more than $11,000 annually in property taxes.
· The sales tax rate in Nevada, in combination with the lower cost of living, means households in the Silver State can expect to pay lower taxes annually on all taxable purchases. The hypothetical football player would save an estimated $1,600 per year in sales taxes.
“Nevada remains a tax-friendly locale for high net worth households overall,” said James Rensvold, executive vice president and director of private banking. “Given the recent change to the federal tax code that limited deductions of state and local taxes, higher-tax states such as California have become even more burdensome for residents, increasing the tax advantages of living in Nevada.”
The Private Bank High Net Worth Report is available on Nevada State Bank’s website at www.nsbank.com/HNWreport or by contacting The Private Bank directly at 702.855.4596.
About The Private Bank by Nevada State Bank (@NSBPrivateBank)
The Private Bank by Nevada State Bank provides a full range of personalized financial services for high net worth and high-income clients. www.nsbank.com/private.
About Nevada State Bank (@nevadastatebank)
Nevada State Bank, a division of Zions Bancorporation, N.A., is celebrating its 60th anniversary this year. Founded on Dec. 9, 1959, the full-service bank offers a complete range of consumer, private, and business banking services. Nevada State Bank’s colleagues regularly volunteer in their communities and have been dedicated to helping make Nevada a better place to live for the last 60 years. Zions Bancorporation, N.A. is included in the S&P 500 and NASDAQ Financial 100 indices (NASDAQ: ZION). For more information on Nevada State Bank, call 775-852-6611 or visit www.nsbank.com.