Moving From Washington to Nevada
Washington and Nevada are both known for having no traditional state income tax for most residents, so moving to Las Vegas does not automatically mean you’ll save thousands in income taxes.
The real savings may come from what you spend on your home, mortgage, insurance, HOA fees, utilities and daily lifestyle.
Today, we’re running through a simple example to see whether moving from Washington to Nevada could actually improve your monthly budget and situation.
I have been working with a lot of clients moving from Washington to Las Vegas and Henderson. I ran the numbers with current clients, Mark and Denise and when we put everything on paper it got really interesting looking at the difference for them personally. I am going to share some of the figures and information we came up with that made the move make a lot of sense for them. They currently live just outside Tacoma and are considering a move to Henderson. I asked them if I could use them as an example for a video and they said “absolutely Leslie! People need to see the real numbers.”
They earn less than a million dollars a year, which matters in a minute when we talk taxes. Their real goal isn’t chasing a tax break, it’s reducing their monthly housing expenses so they have more breathing room every month. And like most people I work with, they’re planning to stay in Nevada long enough term, they plan to retire here and live full time not just relocate on a whim and hope it works out.
These numbers are what we put together for them. Actual costs will depend on the homes, loan terms, insurance, HOA and lifestyle.
PART 1 — State Income Taxes
Question: How much would this person actually save on state income taxes?
For someone earning less than $1 million, the immediate difference may be smaller than expected because Washington currently does not impose a general individual income tax, and Nevada does not tax individual wages or salaries.
Washington’s new 9.9% tax applies beginning in 2028 to taxable income above $1 million, so that future difference is mainly relevant to my very high-income household clients not the typical homeowner or retiree relocating from the Seattle or Tacoma area.
So, Mark and Denise’s numbers were similar for income tax in Washington and Nevada. They currently make around $250,000 and will be retiring so they are not paying taxes in Washington to begin with so the move here would not be a significant savings on income tax as both are similar in not having that tax.
For the average homeowner or retiree, this will not be an automatic income-tax benefit.
PART 2 — The Housing Payment
In my experience, yes this is where the real difference comes in and where Mark and Denise will see the biggest change. Their Washington home mortgage payment is $4,500 a month for just principal and interest, plus property tax and insurance of $1,200, for a housing cost around $5,700 before they even think about utilities.
In Las Vegas or Henderson, that same size and type of home would be significantly less and the mortgage payment closer to $2,800 a month, with property tax and insurance around $700. That’s a savings of more than $2,000 a month, and it’s almost always driven by one thing: selling in a more expensive market and buying in a more affordable one. For Mark and Denise, they have built up enough equity that they likely will pay cash for the home here. They are selling their home around $1.5 million dollar house with equity around $700,000 and they want to downsize and are looking at Sun City Anthem around $600,000. They will likely pay cash for the home here and not have a payment at all!
How this works for clients really depends upon a handful of variables, what you actually walk away with in Washington sale proceeds, what’s left on your remaining mortgage payoff, the Nevada purchase price you choose here, the interest rate you lock in, property taxes, and your homeowner’s insurance. Change any one of those and the whole equation changes. This is why I never quote a client a generic number, we will run your actual numbers.
PART 3 — HOA, Utilities and Transportation
Question: Which Nevada expenses could reduce the apparent savings?
This is the part people forget to budget for, and I make a point of walking every relocating client through it before they fall in love with a house. For my Washington buyers their utility bills were around $450 a month. We are estimating here utility bills around $550 a month including power, water and gas. Our summer cooling months add to the overall cost of unities.
HOA is another one: Mark and Denise don’t have an in HOA back in Washington, but many Henderson and Las Vegas communities have HOA’s. They are looking in Sun City Anthem with an HOA fee of $435 quarterly which is $145 a month. The fee includes 3 club houses with a ton of amenities for residents.
Nevada could bring a lower mortgage payment or possibly allow you to purchase cash outright but your cost of living may be slightly higher with utilities and HOA, depending on the home and community.
Clark County also has an 8.375% sales-tax rate, so buyers should not assume every daily expense will be lower simply because Nevada has no individual income tax.
For those of you who are new here, I’m Leslie Carver, a Las Vegas and Henderson real estate advisor. I help people compare homes, communities and the financial realities of relocating to Southern Nevada. If you’re considering moving from Washington to Las Vegas or Henderson, my contact information is below. Be sure to subscribe for more relocation and real estate information.
PART 4 — The Upfront Cost of Moving
When you are truly looking at all the figures for the move don’t forget to take into consideration the costs of the move itself. On the Washington side, there are home-selling costs plus any repairs, the moving company itself and travel back and forth while your house hunting.
Some families need temporary housing if their sale closes before their Nevada purchase does. Then on our end, there are the closing costs to purchase the home. Plus things my clients don’t think about for example a lot of my clients buy a new home and want new furniture for their home so if you are truly looking at the numbers don’t forget these items. The move could easily cost $25,000 – $50,000 or more.
PART 5 — The Monthly Budget Comparison
What does this household actually save after all major expenses are included?
For Mark and Denise, they are paying $4,500 in mortgage, $1,200 in property tax and insurance, plus $450 in utilities, for an estimated total of $6,150 a month. In our Nevada example, that drops to no mortgage, $650 in property tax and insurance, $145 in HOA, $550 in utilities, for an estimated total of $1,345 a month. That is a monthly savings of $4,805, or $57,660 a year.
If the move costs approximately $35,000 – $60,000 including closing costs on the sale, then they would recoup the cost of the move in a year or less. The savings in this example come mainly from purchasing a less expensive home, not from ordinary state income taxes.
Would you move to another state to save $1,800 per month, or would the lifestyle and location matter more than the financial difference?
FINAL VERDICT
So, will moving from Washington to Nevada actually save you money? In this example, yes but only because the homeowner reduces their total housing and living expenses. Someone who sells an expensive Washington home and purchases a more affordable Nevada home may significantly improve their monthly cash flow. But someone who buys a similarly priced home, adds a large HOA fee or underestimates utility costs may save much less than expected.
The real question is not simply whether Nevada has lower taxes. It is whether the complete Nevada budget is lower than the complete Washington budget. And of course, the big picture also looks at the lifestyle. If you are purchasing in a community like Sun City Anthem it is a great way to meet other people with similar interests. My clients who are making this move are very happy with the change not just financially but also overall.
If you’re considering moving from Washington to Las Vegas or Henderson, I’d be happy to help you compare Nevada home prices, communities, HOA fees and the ongoing costs of ownership.
For personalized tax advice, speak with a qualified tax professional who can review your income and investment situation.
Subscribe for more Las Vegas relocation information, and I’ll see you in the next video. https://youtube.com/@lesliecarverlv?si=TArlMK8hxmLNboql