Lower Taxes When Moving to Las Vegas from California Moving to Las Vegas from anywhere in California seems to be a relocation trend especially in the past few years. We all know the cost of living, more affordable real estate, and quality of life are just a few examples of why Californians continue to relocate to Nevada. One primary reason to move to Las Vegas is the remarkable tax benefits. Let’s dissect these tax benefits to help your transition into Nevada more seamlessly. Nevada State Income Tax Nevada doesn’t have state income tax. This makes for significant tax savings and is probably the main reason Californians choose to head east to Las Vegas. Funny enough, you can also deduct gambling losses from your federal taxable income on your Federal Income Tax return. California is notorious for having the highest income tax bracket in the nation, with a top marginal income rate tax of 12.3%. However, this rate does not include an additional 1% surcharge for taxpayers with incomes over $1 million per year, making their top marginal tax rate 13.3%.