What do they mean by "Tax Free" in Las Vegas?

Question

I'm planning on buying real estate in Las Vegas and alot of people who lived or has lived in Las Vegas said they are TAX FRREE or have low taxes? What does that mean?

Answer 1

Because the state and city bring in so much revenue from gambling, they don't need much in the way of property or state income taxes from its residents.

Answer 2

Your very question brings up a good point!

Anything "Free," or "Tax Free," certainly sounds attractive, but it seems to me that there is a bit of "sales puffing" in that saying. After all, last I heard, the State of Nevada is still within The United States of America!

Though Las Vegas (any place in Nevada) is State of Nevada income tax free, in connection with income earned within the State of Nevada, such income is not Federal income tax free!

Furthermore, the saying, "Tax Free," is often an ambiguity for "Income Tax Free," and, most often, does not include Sales Taxes, Payroll Taxes, Property Taxes, Estate Taxes, Inheritance Taxes, Fuel Taxes, etc.

That was a great question, which is not thoroughly considered by many people!

Phil
http://www.phillipfostercpa.com/tax.html

Answer 3

There is no "state income tax." There is also no tax on buying food (I just figured that out :). When you make other purchases, like non-food items, the tax is around 11%. There is pretty much tax on everything else and taxes on car registration is pretty high compared to Hawaii where I am from.

Answer 4

Nevada (which, of course, is where Las Vegas is) has no state income tax, and its sales tax is relatively low, at 6.5%. It does, however, have property taxes, and they're not low.

Answer 5

BELIEVE NOTHING-TRUST NOBODY. Get a very thorough breakdown on what Tax Free item is being discussed.

Answer 6

It means there are no property and state taxes.