New Jersey and New York have two of the highest combined tax burdens in the country. Moving to Nevada eliminates state income tax, dramatically cuts property taxes, and — for most Northeast retirees — reduces the total cost of living by $15,000–$30,000+ per year.
New Jersey taxes income at graduated rates up to 10.75% and has the highest effective property tax rate in the nation at approximately 2.23%. New York state income tax runs up to 10.9% with an additional New York City surcharge (up to 3.876%) for NYC residents. Both states have inheritance taxes or estate taxes. The combined burden for a New Jersey or New York retiree is among the highest in any state.
New Jersey has the highest property tax rate in the United States. A $450,000 New Jersey home pays approximately $10,035/year in property taxes. The identical purchase price in Nevada — say, a Sun City Summerlin home — pays approximately $2,475/year. The annual property tax savings of $7,560 is equivalent to more than 30 months of Sun City Summerlin HOA fees.
Many New Jersey retirees find that the property tax savings alone — before even considering income tax — justifies the move. When income tax is added, the combined annual savings often exceeds $12,000–$18,000 for a typical New Jersey household.
New Jersey and New York suburban homes have appreciated significantly, particularly in Monmouth County, Bergen County, Westchester, and Long Island. Many Northeast sellers arrive with $500K–$1M+ in equity — enough to purchase in Henderson or Summerlin with cash or minimal mortgage while retaining substantial invested capital.