Nevada vs California Taxes: What Changes When You Move
What changes, and what California can still tax after you leave.
Nevada has no state income tax, while California charges up to 13.3%. Nevada property taxes on a primary residence can’t rise more than 3% a year on your bill, and sales tax in Las Vegas is 8.375%, compared with 9.75% in most of Los Angeles County. The catch: California can still tax some income after you move, including the gain when you sell your California home.
We’re Realtors, not accountants, so treat this as the conversation you have before you call one. This guide covers what our California buyers ask about, with sources. Before you make a decision that depends on it, talk to a CPA who handles California to Nevada moves.
State income tax: the big one
California taxes income on a graduated scale that tops out at 12.3%, plus an extra 1% on income over $1 million, for a top rate of 13.3%. California also withholds State Disability Insurance from most paychecks.
Nevada has no personal state income tax. None on wages, none on retirement account withdrawals, none on Social Security, none on investment income. You’ll still file a federal return, of course.
What that looks like for a regular household is easy to underestimate. If you earn $150,000 as a couple in California, you’re likely paying several thousand dollars a year in state income tax. In Nevada that line on your budget is zero. For a lot of our buyers, that number alone covers the HOA fee and then some.
Property tax: different system, fewer surprises
California and Nevada both limit property tax increases, but they work in opposite ways, and it matters when you buy.
California (Prop 13): the base rate is 1% of the purchase price plus local bonds and assessments, and the assessed value can rise up to 2% a year. When a home sells, it gets reassessed at the new price. Prop 19 lets some homeowners 55 and older carry their tax base to a new home, but only within California. It doesn’t follow you to Nevada.
Nevada: the county starts with “taxable value,” which is the land value plus the cost to replace the house minus depreciation. That’s usually well below market price. Nevada then assesses 35% of that taxable value and applies the local rate. In Clark County the combined rate for fiscal 2026-27 is about $2.93 per $100 of assessed value in unincorporated Enterprise (where Mountain’s Edge is), $2.96 in Henderson and $3.28 in the City of Las Vegas, per the Clark County Treasurer.
Then the cap. If the home is your primary residence, your tax bill can’t go up more than 3% a year. Other property, like a rental or second home, is capped at up to 8%. Here’s the part Californians don’t expect: in Nevada the cap stays with the property. When you buy an existing home, you’re generally not reassessed at your purchase price the way you would be in California. The Legislature has looked at changing that (Assembly Joint Resolution 1 in 2025 proposed a reset on sale), but as of 2026 the benefit still stays with the home.
One thing you have to do: when your deed records, the county removes the owner-occupied 3% rate until you re-claim it. The Clark County Assessor mails a postcard to new owners. Sign it and send it back. If you skip it, the higher cap applies. (Clark County tax abatement)
New construction is different, since there’s no history to cap. Your first bill reflects the full taxable value of a brand-new house, and many newer master plans add SID or LID assessments on top. Ask for the numbers before you sign with a builder.
Clark County property taxes are paid in four installments: August, October, January and March.
| California | Nevada (Clark County) | |
|---|---|---|
| How the value is set | Purchase price, reassessed on sale | Taxable value (land plus depreciated replacement cost), usually below market |
| Rate | 1% base plus local assessments | About $2.93 to $3.28 per $100 of assessed value, FY 2026-27 (assessed = 35% of taxable) |
| Annual cap | Assessed value up 2% max | Tax bill up 3% max (primary home), up to 8% (other property) |
| Resets when you buy | Yes | Generally no; re-file the primary residence postcard |
| Carry your tax base from another home | Prop 19, in California only | Not applicable |
Sources: Clark County Assessor; Clark County Treasurer FY 2026-27 rate tables; California Board of Equalization. Figures are approximate and change yearly.
Sales tax
Clark County’s sales tax is 8.375%. California’s statewide base is 7.25%, and local add-ons push most of Los Angeles County to 9.75% since April 2025, with some cities higher. Orange County and San Diego County start at 7.75%.
It won’t change your life, but on a $40,000 car or a houseful of new furniture, it adds up. One thing to know before you buy that car: Nevada charges a Governmental Services Tax when you register a vehicle, based on its original price and age. It can be higher than Californians expect on a newer car. We cover the DMV side in our moving guide.
What California can still tax after you leave
This is the part people miss. Leaving California doesn’t cut you off from the Franchise Tax Board all at once.
- The year you move, you’re a part-year resident. California taxes everything you earn while you’re a resident, plus California-source income after that.
- Selling your California home is California-source income. Any gain above the federal exclusion ($250,000 single, $500,000 married filing jointly, if you qualify) is taxable in California even if you already live in Nevada. Escrow in California may also withhold a percentage of the sale price for the state unless you qualify for an exemption.
- Rental income from California property stays taxable in California. So does income from a California business, or work you physically do in California.
- Some deferred pay can follow you. Stock options, deferred compensation and similar pay earned while you lived in California may still count as California income. The FTB’s Publication 1004 covers how.
- Residency is about where you actually live. The FTB looks at where you spend your time, where your family lives, where you’re registered to vote, where your car is registered, which doctors you see. Spending more than nine months of a tax year in California creates a presumption that you’re a resident. (FTB: nonresidents and part-year residents)
The practical move: once you buy here, make Nevada your home on paper too. Nevada driver license, Nevada car registration, voter registration, your Nevada address on your bank accounts. Keep records of your move date.
So how much do you actually save?
It depends almost entirely on your income and what you sell in California. For a retired couple living on pensions and IRA withdrawals, the savings on state income tax alone can be real money every year. For a couple selling a California house with a big gain, the first year may not look like savings at all, because California taxes that gain.
For most regular households the picture is simple. No state income tax, a lower purchase price, and a property tax bill that grows slowly. Then look at what the same money buys here. Our What $500K Buys in Las Vegas guide has that side of it.
Where these taxes show up by neighborhood
Tax rates vary a little by jurisdiction, and newer master plans often carry SID or LID assessments.
- Mountain’s Edge is in unincorporated Clark County, with mostly older homes and no new-construction assessments on resales.
- Lake Las Vegas is in Henderson, and some newer sections carry SID or LID assessments, which we break down on our Lake Las Vegas HOA and SID fees page.
Frequently asked questions about Nevada vs California taxes
Is Nevada tax cheaper than California?
For most households, yes. Nevada has no state income tax, while California’s rates go up to 13.3%. Las Vegas sales tax is 8.375% versus 9.75% in most of Los Angeles County, and Nevada caps annual property tax increases on a primary residence at 3%.
Will I be taxed by California if I move to Nevada?
California can still tax income sourced to California after you move. That includes the gain on selling your California home above the federal exclusion, rent from California property, and work performed in California. In the year you move, you file as a part-year resident.
Do property taxes reset when you buy a house in Nevada?
Generally not the way they do in California. Nevada’s 3% cap stays with the property, so buying an existing home usually doesn’t reassess it at your purchase price. You do need to return the Clark County Assessor’s primary residence postcard to keep the 3% cap. New construction starts at full taxable value.
Does Nevada tax retirement income or Social Security?
No. Nevada has no state personal income tax, so pensions, IRA and 401(k) withdrawals and Social Security aren’t taxed by the state. Federal tax still applies. If any of that income is tied to work you did in California, check with a CPA about California rules.
What is the property tax rate in Las Vegas?
In Clark County the combined rate for fiscal 2026-27 runs about $2.93 to $3.28 per $100 of assessed value depending on where you live, and assessed value is 35% of the county’s taxable value, which is usually below market price. Many primary-residence owners end up paying well under 1% of what the home is worth.
Talk it through with us
We’ll show you real tax bills on the homes you’re considering, not estimates, and point you to CPAs who handle California to Nevada moves. Tell us where you’re coming from and what you’re hoping to spend.
Matt: 702-324-8685 · Christina: 702-827-6146 · Send us a note
This guide is general information, not tax or legal advice. Tax rules change; confirm your situation with a licensed tax professional.