Nevada Taxes

Well, the job offer in Canada fell through (happy to be honest) so hubby is now looking at a job in Nevada. As they do not have income tax what % can go to housing? I know for most people in other states its 28%, does this number change since there is no income tax or stay the same? I am trying to do a housing search but not sure what I should be looking at as the calculators give a 28% ratio. I did find one that gives different %'s but since I do not know what I should put I am still stuck. Thanks.

Hi there,

I have never paid propety taxes, however I beleive it is 28%. If anything it is lower.

Income tax is taken care of.

Nevada has no state income tax.  Housing is whatever you want.  The old rule of thumb was 25% (when I was a kid), but nowadays some folks will pay as much as 50% of net (post-tax) income. 

If you purchase property, you will have a portion of the monthly income going towards the capital purchase price of the property, and thus may be able to afford a bit more than if you rent.

I think you're talking about the qualifying ratio, right?  It used to be that standard loans would only let you borrow enough so that 28% of your pay went to housing (PITI - principle, interest, taxes, insurance) and 36% for housing plus debt (PITI + car loan etc).

These are not so standard anymore, but with sub-prime loan problems in the US loan rules may have tightened. 

A quick check on monstermoving.com gave me one lender who's Nevada loans allow ratios of 45/45 (S&L Home Loans).

If this was the nature of your question, it belongs more in "Housing" than "Taxes".

Good Luck!