Taxes in Nevada

Tax Policies in the State of Nevada
Nevada has a very generous tax policy, which has helped to attract both businesses and individual residents.
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The state has some of the lowest taxes in the United States, though residents are still responsible for paying all relevant federal taxes. State income tax files are not collected, however. While it might not be a tax haven in the traditional sense, Nevada is a top destination for those who are trying to legally avoid paying income taxes.Tax Nevada 2015

Individual Income Tax Brackets
Residents of the state of Nevada aren’t placed into tax brackets. The state doesn’t collect progressive taxes, nor is there a flat tax structure. This has made it something of a tax haven, and some people from states with high taxes have permanently moved to Nevada to escape the types of taxes that they’re responsible for.

Certain states will attempt to collect taxes from residents of other states if they made a certain amount of income there. For instance, Nevada residents who work in California may be responsible for some California taxes. California is only allowed to tax income made in that state. Several other states have similar policies, but these are beyond the control of the state of Nevada. These taxes might be difficult for other states to collect, however, which continues to make it attractive for individual taxpayers.

Corporate Tax Brackets
Nevada doesn’t charge a corporate tax, and it doesn’t assess business taxes in the same way that other states do. Some municipalities have certain taxes that have to be paid, and business owners will be responsible for property taxes on any physical structures that they own. Otherwise, though, business taxes don’t actually exist.

Capital gains taxes are a major problem for many businesses, and companies involved in investment funds are often charged large taxes based on the growth of stocks and bonds. Short-term gains taxes are a particularly large problem for these types of businesses. Nevada doesn’t charge any of these taxes, which makes it an attractive destination for people involved in investments.

Like individuals, companies might have to pay income taxes to other states depending on where they made their money. Companies that only have a presence in Nevada won’t be subject to these taxes, and it can be difficult for other states to collect taxes from Nevada-based businesses. This is yet another reason the state has a popular reputation as a tax haven.

Various Sales Taxes
Many people consider Nevada to be a sort of taxpayer’s paradise, but there’s still one type of tax that the state requires people to pay. While it has no capital gains, gift, income or inheritance taxes, Nevada continues to charge sales tax.

Goods are taxed at a rate of 7.93 percent. Counties and municipalities are allowed to charge additional taxes on top of this percentage. Since most other taxes are nonexistent in the state, Nevada has a reputation for charging a great deal in sales tax. This is somewhat undeserved. California charges 8.38 percent, and Arizona charges 9.16 percent. This means that staying in Nevada and shopping close to home makes sense for most residents.