California vs Nevada Taxes: Complete Comparison
California vs Nevada Taxes 2026: Complete Comparison
California and Nevada share a border—but their tax systems couldn't be more different. Nevada has no income tax. California has the highest in the nation (13.3%). Many Bay Area and LA residents are discovering Nevada's tax advantages.
Key Fact: A California resident earning $150,000 pays $8,185 in state income tax. A Nevada resident pays $0. Distance from SF to Reno? 218 miles.
Quick Comparison
| Tax Category | California | Nevada | Winner |
|---|---|---|---|
| Income Tax | 1% - 13.3% | 0% | ⭐ Nevada |
| Sales Tax | 8.82% avg | 8.23% avg | ⭐ Nevada |
| Property Tax | 0.73% | 0.60% | ⭐ Nevada |
| Total Tax Burden | 13.5% | 9.6% | ⭐ Nevada |
| Estate Tax | None | None | Tie |
Bottom Line: Nevada wins on all major taxes. CA's only advantages are non-tax related.
Total Federal Tax
$16,712
Effective Tax Rate
16.71%
Your Tax Bracket
22%
Marginal tax rate on next dollar earned
Tax Breakdown by Bracket
2026 Tax Brackets (Single)
Income Tax: $8,000+ Annual Savings
California: Nation's Highest
- 1% - 13.3% (top bracket)
- $100K income: ~$4,775 tax
- $200K income: ~$14,350 tax
- $500K income: ~$46,750 tax
Nevada: Zero
NO STATE INCOME TAX
Savings: CA → NV
| Income | CA Tax | NV Tax | Savings |
|---|---|---|---|
| $75K | $2,660 | $0 | $2,660 |
| $100K | $4,775 | $0 | $4,775 |
| $150K | $8,185 | $0 | $8,185 |
| $250K | $18,850 | $0 | $18,850 |
30-year career at $150K: $245,550 saved
Take Standard Deduction
$47,500
Standard deduction of $47,500 exceeds itemized deductions by $22,500
Standard Deduction
$47,500
Itemized Deductions
$25,000
Your total deductible expenses
🎉 NEW 2026 Senior Deduction (OBBBA)
$12,000 additional deduction for taxpayers 65+
Deduction Breakdown
2026 Standard Deduction Amounts
- • Single: $16,100
- • Married Filing Jointly: $32,200
- • Head of Household: $24,150
- • Single: $2,050 per condition
- • Married: $1,650 per person, per condition
- • $6,000 per taxpayer age 65+
- • Phases out at $75K (single) / $150K (married)
- • 6% reduction per dollar over threshold
💡 Optimization Tips
• You're benefiting from the NEW 2026 senior deduction - a valuable OBBBA provision
Property & Sales Tax
Property Tax
- California: 0.73% avg (Prop 13 protection)
- Nevada: 0.60% avg
- Nevada wins by ~18%
Sales Tax
- California: 8.82% avg
- Nevada: 8.23% avg (no state sales tax, but high local taxes)
- Nevada wins slightly
Real-World Scenarios
Scenario 1: Tech Worker (SF → Reno)
Income: $180,000
Rents apartment
San Francisco:
- Income tax: $11,900
- Sales tax: $3,969
- Total: $15,869
Reno:
- Income tax: $0
- Sales tax: $3,700
- Total: $3,700
Nevada saves: $12,169/year 🎉
Scenario 2: Family (Bay Area → Las Vegas)
Income: $200,000
$650K home
Bay Area:
- Income tax: $14,350
- Property tax: $5,525
- Sales tax: $4,410
- Total: $24,285
Las Vegas:
- Income tax: $0
- Property tax: $3,900
- Sales tax: $4,115
- Total: $8,015
Nevada saves: $16,270/year 🎉
Total Child Tax Credit
$4,400
Refundable Portion
$0
Credit Breakdown
Refundable vs. Non-Refundable Credit
2026 Child Tax Credit Parameters
Credit Amounts
- • Per qualifying child (under 17): $2,200
- • Per other dependent (17+): $500
- • Refundable portion limit: $1,700/child
Phase-Out Thresholds
- • Single: $200,000
- • Married Filing Jointly: $400,000
- • Reduction: $50 per $1,000 over threshold
💡 Optimization Tips
• Your income is well below phase-out threshold - you're receiving full credit
Scenario 3: Retiree (CA → NV)
Income: $90K (retirement)
$500K home
California saves slightly due to lower property tax on higher-value home and lower retirement income tax burden.
But for most retirees, Nevada still wins overall.
Which State Wins?
Nevada Better For:
✅ High earners ($75K+)
✅ Tech workers (remote or Reno hub)
✅ Retirees (no tax on distributions)
✅ Business owners
✅ Gamblers (no tax on gambling winnings!)
✅ Lower cost of living seekers
California Better For:
✅ Weather/outdoor lovers (CA weather unbeatable)
✅ Beach enthusiasts
✅ Those requiring SF/LA presence
✅ World-class amenities
✅ Those who hate extreme heat (Vegas) or winter (Reno)
Special Considerations
Reno vs Vegas:
- Reno: 4 seasons, close to Tahoe, growing tech hub
- Vegas: Hot desert, entertainment capital, no state income tax on winnings
Establishing NV Residency:
- Must demonstrate NV is your domicile
- CA very aggressive about auditing high earners who move
- Document everything (see our full guide)
No Income Tax on Gambling: Nevada doesn't tax gambling winnings (federal still applies).
Your QBI Deduction (Section 199A)
$20,000
20% of your qualified business income
Estimated Tax Savings
$4,800
Based on your marginal tax bracket
QBI Deduction Breakdown
2026 QBI Deduction Parameters
Income Thresholds (2026)
- • Single/HoH: $201,775 threshold
- • Married Joint: $403,500 threshold
- • Phase-in range: $75,000 (single) / $150,000 (married)
Deduction Rules
- • Standard deduction: 20% of QBI
- • Limited to 20% of taxable income
- • W-2 wage limit may apply above threshold
- • SSTB restrictions for high earners
💡 Optimization Strategies
• Your income is below the threshold - no wage or SSTB limitations apply. Focus on maximizing QBI.
FAQ
Q: Will California audit me?
Yes, likely if you're a high earner. CA is extremely aggressive. Document your NV residency thoroughly.
Q: Can I keep my CA home?
Risky. CA may claim you're still a resident. Best to sell or rent out long-term.
Q: Cost of living?
Reno and Vegas are 30-50% cheaper than Bay Area/LA for housing. Other costs similar.
Q: What about earthquakes (NV) vs CA?
Both states have earthquake risk. Similar insurance considerations.
Conclusion
For earners making $75K+, Nevada saves $2,500-$20,000+ annually vs California—often $300,000+ over a career.
The trade-off: CA's world-class weather, beaches, and amenities vs NV's tax freedom and lower cost of living.
Calculate Your Savings:
Total Federal Tax
$16,712
Effective Tax Rate
16.71%
Your Tax Bracket
22%
Marginal tax rate on next dollar earned
Tax Breakdown by Bracket
2026 Tax Brackets (Single)
Over-Withholding
$15,600
You're giving the IRS an interest-free loan. Expect a refund.
Estimated Tax Owed
$0
Total Withholding
$15,600
Recommended Action
Tax Calculation Breakdown
Payment Schedule
💡 Withholding Tips
• You're over-withholding by $15,600/year. Consider reducing to increase take-home pay
• Submit new W-4 form to your employer to adjust withholding by $600/paycheck
Your Earned Income Tax Credit
$4,250
Credit being phased out
EITC Credit Breakdown
Income Analysis
2026 EITC Parameters
Maximum Credits (2026)
- • No children: $664
- • 1 child: $4,427
- • 2 children: $7,316
- • 3+ children: $8,231
Key Requirements
- • Must have earned income
- • Investment income limit: $11,950
- • Must file tax return (even if not required)
- • Valid Social Security number required
💡 Optimization Tips
• Your credit is being reduced by $177.378 due to phaseout
• Consider tax-deferred retirement contributions to reduce AGI and increase EITC
AMT Owed
$0
Total Tax Liability
$65,000
AMT Calculation Breakdown
2026 AMT Parameters
- • Single: $90,100
- • Married Joint: $140,200
- • Single: $500,000
- • Married Joint: $1,000,000
- • Phaseout rate: 50% (increased from 25%)
- • 26% on first $244,500
- • 28% on excess over $244,500
Last Updated: Jan 2, 2026
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