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A widening gap in state income tax rates is accelerating an exodus of high-earning Californians toward Nevada, as the 13.3% top marginal rate in California — the highest in the nation — pushes business owners, investors, and retirees to a state that levies no income tax at all.
The financial calculus is stark: a business owner earning $1 million annually can save more than $130,000 per year by crossing the state line, while a $5 million earner stands to retain more than $650,000 that would otherwise flow to Sacramento.
The Tax Arithmetic Behind the Migration For high earners, the spread between California and Nevada is not marginal.
At the $5 million income level, annual savings exceeding $650,000 compound over a decade into a figure that can substantially reshape a family's wealth trajectory.
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