Nevada is one of the most popular states gaining residents from neighboring states. In this case, primarily from its neighbor to the west, California. One might wonder, why would anyone would choose to leave sunny California? Easy. People are tired of state politics, laws/policies and most of all, taxes. It was estimated that between 2007 and 2016, over six million Californians left the state while five million entered. That translates to a decrease in population by 2.5%. During that time, personal income taxes increased by over 3%. So, where did these California residents go?
A lot of them moved to Nevada. Nevada is among the top five states for relocation in America. In fact, Nevada accepted over 55,000 people from the Sunshine State in 2019. This number is estimated to increase substantially through 2020. There are now more California-born adults living in Nevada than Nevada-born adults living in Nevada! According to the Applied Analysis report, 49% of Nevada newcomers are from California. 75% of people looking for homes in Reno are Californians and 89% of new Lake Tahoe residents (Nevada side of course) are from California. But why the Silver State? The main factors that drive people from states like California are high taxes, exorbitant home prices and cost of living. These factors are not present in Nevada.
The reasons native Californians abandon their beloved state for ole’ Nevada are significant:
Nevada has a very appealing tax system for its residents. Categorically, it’s the best in the USA. There is no state income or inheritance tax in Nevada. There isn’t a sales tax on food or medicine either. For some new Nevadans that become true “domiciled” residents, this is like receiving nearly a 20% pay raise. To learn more about Nevada Taxes, click here where we go into more detail.
2. Booming & sustainable job market
Forget the old adage that Nevadans only work in casinos, hotels or restaurants. The modern job market is much more extended. According to the US Labor Department, Nevada had a top employment growth rate all over the country in 2017 at 3.3%. Reno was the #1 City in the US for growth for 2018 and again broke records measured by Nevada Department of Employment with 4.1% growth in 2019. The highest number of jobs were offered in business services, health care, technology and transportation. With companies like Google, Tesla, Switch, Walmart and FedEx, to name a few, making Northern Nevada their new home, its no wonder why it’s estimated there will be over 60,000 new jobs being added here in just a couple years.
3. Beautiful scenery
With a diverse landscape that celebrates all four seasons, Nevada is a home to some of the most eye-catching scenery in the country. Southern Nevada features desert conditions while Central Nevada showcases magnificent canyons, mountains, deep lakes and rivers (Lake Tahoe for example, is known to be the most picturesque area in the country). Northern Nevada, specifically Lake Tahoe, is proud owner of unforgettable caves, state parks, relaxing beaches, peaceful valleys and thousands of miles of hiking trails to enjoy.
4. Cost of living and housing
Despite the fact that the cost of living in Nevada is about 4% higher than the US average, it is still much more affordable than California and other state of the like. Here you can save on utilities and insurance as well as obtain a home for a third of the price than areas in the Sunshine State. When it come to property taxes, California, for instance runs about 1.1% to 1.6% of assessed land value where as Nevada is .77%. On average, that’s about half depending on the circumstance.
It’s not only in Vegas baby! Stateline, Nevada has four major casinos (Harrah’s, Harveys, Mont Bleu, Hard Rock), while there are numerous smaller locations peppered around the area. It is legal to gamble here not only in casinos but also in many other places – slot machines are in many bars. Not into gambling? That’s ok, you’ll appreciate the benefits. Nevada’s resort industry pays more than $1.8 billion in taxes and fees annually, funds nearly 40 percent of the State General Fund and is the single largest contributor to state education. Nevada’s hotels and casinos pay all of the taxes typically owed by businesses and also bear industry-specific taxes that help support K-12 schools and public colleges and universities, build and fantastically maintain streets and highways and provide other essential services at the state and local level.
6. Natural Disasters
Nevada isn’t riddled with fault lines and massive earthquake zones like our neighbors to the west. Although, once every year or two, we might feel a little jostle from California’s seismic activity. Floods did pose a problem once-upon-a-time with Nevada’s hard, dry earth, however, infrastructure in modern times has corrected most, if not all of that. So, when it comes to title waves, tsunamis, monsoons, tornados, Nevadans just don’t have it. The occasional blizzard will make its way through Lake Tahoe once or twice a year but this is the kind of event many of the locals specifically moved here for fresh powder! The only natural disaster that that poses any real threat in and around Lake Tahoe is wildfire. However, the forests here are extremely well maintained as they utilize a “prescribed burn” technique, used year-round. Fire crews thin and pile brush and tree debris in the forested areas, purposely burning them to ash. This removes the fuel that feeds wildfires. With thousands of members of Fire Service personnel and fire breaks around the lake, we are in good hands.
There are several important things you need to know before making the move to Nevada apart from the above benefits:
If you plan to change residency from California to Nevada, consider the following relocation tips.
1. Find movers from California to Nevada
Find a trustworthy, full-service moving company. If you want to have your belongings delivered safely and according to schedule, choose local leaders. You must also remember that California to Nevada is rather costly because of the route’s popularity. The “reverse commute” may be significantly less expensive.
2. Cut all official ties with California
Moving to a new state means applying for an in-state driver’s license, updating car registration and insurance, instating new utilities, opening local bank accounts, registering to vote and any other required state changes.
3. Look at the weather forecast on the day of arrival
Nevada is an unpredictable state that can meet you with heat or frost. Always check the weather forecast.
4. Change the address of your IRA and brokerage accounts
As soon as you change the address of your IRA and brokerage accounts, they will fall under Nevada laws and you will be protected from California taxes.
5. If you own your own business, close it in CA and reopen it in NV
Running a business out of California while residing in Nevada requires registration of a foreign corporation and requires payment of California taxes. It’s best to live AND work in Nevada.
6. Learn how to avoid primary residence capital gains tax
If you do not want to give a huge percentage of your money to the state, you need to take advantage of one of the tricks on how to avoid a primary residence capital gain tax.
Becoming a Nevada resident
Becoming a Nevada resident does not just mean arriving in Nevada with all of your belongings. In fact, the term ‘resident’ implies several meanings which you should confirm.
It is a person, who:
- Is legally residing in the state of Nevada,
- Is engaged in intrastate business and has local vehicles or people operating them in the state,
- Is physically a resident of the state engaged in a trade, occupation or is employed in this state,
- Declares to be a resident and shows the desire to use all the privileges offered to the residents of the state.
It means that you can change a driver’s license, for example, only if you provide proof of your physical Nevada address. There are many ways to do that which can be found at dmvnv.com
Nevada appreciates and welcomes you here with open arms. Nevada recognizes that if it welcomes business people (the economic engine of the country) with little regulation and great benefits, then ultimately the state benefits. Nevada recognizes the attractiveness of the proverbial “Win-Win” relationship. Nevada is not ashamed of its pro-business posture and is actively fostering the free enterprise system. That adds up to great benefits for you!
So, now that Nevada is an obvious choice, WHY GLENBROOK?