Washington's newly enacted Millionaires Tax is changing the financial landscape for many high-income residents. With a new 9.9% tax on income above $1 million beginning in 2028, along with existing capital gains taxes, many business owners, investors, executives, and retirees are exploring Nevada, including Incline Village and Lake Tahoe, and researching Incline Village real estate as a potential home base.

Key Takeaways

• Washington's new 9.9% income tax takes effect in 2028 for income above $1 million.

• Washington already imposes a capital gains tax that reaches 9.9% on qualifying gains above $1 million.

• Nevada has no state income tax and no state capital gains tax.

• Incline Village offers Nevada tax advantages combined with the Lake Tahoe lifestyle.

Washington's Tax Landscape Is Changing

For decades, Washington attracted different groups of people and professions because it was one of the few states without a broad state income tax. That is now changing. In March 2026, Washington Governor Bob Ferguson signed Senate Bill 6346 into law, creating a new 9.9% tax on income exceeding $1 million. The law becomes effective January 1st 2028 with the first payments due in 2029.

While the tax affects a relatively small percentage of residents, many of those residents are among the state's highest earners. This includes technology executives, startup founders, business owners, investors, and professionals with substantial stock compensation. For many households, conversations are underway about what their options are and how to protect their future earnings from these new taxes.

Washington's Capital Gains Tax Adds Another Layer

Washington's income tax is not the only recent tax change affecting affluent residents. The state already imposes a capital gains tax on certain long-term investment gains. Beginning in tax year 2025, gains above $1 million can be subject to a 9.9% state tax rate.

For individuals planning to sell a business, liquidate company stock, or realize substantial investment gains, tax planning has become significantly more important than it was just a few years ago. Many Washington residents are now evaluating whether changing residency before a major liquidity event could have a meaningful impact on their long-term financial picture.

Why Nevada Continues to Attract High-Net-Worth Individuals

Nevada has long been considered one of the most tax-friendly states in the country. It is no surprise that many residents from Washington and other higher-tax states are considering Nevada as their primary residence.

Washington vs. Nevada Tax Comparison

Nevada's tax structure can create significant savings opportunities for qualified residents when compared to many other western states. These advantages have helped attract business owners, investors, retirees, and executives from California, Washington, Oregon, and other higher-tax jurisdictions. For many households, the difference can amount to tens of thousands or even hundreds of thousands of dollars over time, depending on income levels and investment activity.

Why Incline Village Has Become One of Nevada's Most Desirable Communities

If you're considering Nevada, not all locations offer the same lifestyle. Located on the Nevada side of Lake Tahoe, Incline Village has become one of the most sought-after destinations for affluent buyers looking to combine tax advantages with an exceptional quality of life. Residents enjoy:

Nevada Tax Benefits

One of the primary reasons many buyers choose Incline Village is the ability to establish Nevada residency while enjoying one of the most beautiful mountain communities in the United States. For many households, Nevada's tax structure can play a significant role in preserving wealth and supporting your long-term financial goals.

Stunning Natural Beauty

Lake Tahoe consistently ranks among the most beautiful alpine lakes in North America. Incline Village offers:

• Panoramic lake views

• Large areas of forest land

• Beautiful mountain ranges

• Four-season outdoor recreation

• Clean air and open space

Many former Seattle-area residents appreciate the similar outdoor-oriented culture while enjoying Lake Tahoe's unique setting.

Year-Round Recreation

Residents enjoy boating, paddle-boarding, hiking, mountain biking, golf, skiing, fishing, and private beach access throughout the year. Nearby attractions such as Sand Harbor and Diamond Peak Ski Resort provide additional recreational opportunities just minutes from home.

Privacy and Exclusivity

Incline Village has earned a reputation for privacy, luxury, and an exceptional quality of life. Unlike many resort communities, Incline Village offers a blend of year-round residents, second-home owners, entrepreneurs, executives, and retirees. Many residents appreciate the quieter atmosphere compared to larger metropolitan areas.

Why Washington Buyers are Choosing Incline Village

Many buyers relocating from Seattle, Bellevue, Mercer Island, Kirkland, Redmond, and other Washington communities are discovering that Incline Village offers a unique combination of Nevada tax advantages, luxury real estate, outdoor recreation, and a high quality of life. For households already considering a move, Lake Tahoe provides an opportunity to potentially reduce state tax exposure while enjoying one of the most desirable mountain communities in the country. Other benefits include:

• Nevada residency benefits

• Luxury lakefront homes

• Private beaches

• Prestigious golf courses

• World-class skiing

• Access to the Reno-Tahoe International Airport

• No state income tax and other tax advantages

Many properties here offer lake views, mountain views, or just a private setting where you can relax for the day. The Incline Village real estate market offers everything from luxury lakefront estates and golf course homes to mountain retreats and low-maintenance condominiums. Many Washington buyers are drawn to the area's combination of privacy, limited housing inventory, private beaches, and access to year-round recreation. For those seeking both lifestyle and financial advantages, few communities in the western United States offer a comparable combination of benefits.

Establishing Nevada Residency Properly

Moving to Nevada involves more than purchasing a property. Individuals seeking Nevada residency for tax purposes should work closely with qualified tax professionals and legal advisors. Common steps often include:

• Purchasing or leasing a Nevada residence

• Obtaining a Nevada driver's license

• Registering vehicles in Nevada

• Registering to vote in Nevada

• Updating financial and legal records

• Demonstrating that Nevada is your primary domicile

Every situation is different, especially for business owners and high-net-worth individuals. Professional guidance is critical when evaluating your next move.

Could Relocating to Nevada Save You Money?

Every household's financial situation is different. For a business owner, investor, executive, or retiree with substantial income, the difference between Washington's evolving tax structure and Nevada's tax environment may be worth looking into.

When combined with Lake Tahoe's outdoor recreation, luxury real estate, natural beauty, and convenient access to the Reno-Tahoe International Airport, Incline Village has become one of the most attractive relocation destinations in the western United States.

Work With Incline Village Realtor Hunter Platte

Relocating to Nevada involves more than just simply purchasing a home. Buyers must evaluate neighborhoods, tax considerations, market conditions, lifestyle preferences, and long-term investment goals. Working with a local Incline Village Realtor who understands both the real estate market and the needs of relocating buyers can help make the transition significantly smoother.

Whether you're considering a primary residence, second home, or investment property, Hunter Platte can help you evaluate the tax advantages, lifestyle benefits, and real estate opportunities available in Incline Village and Lake Tahoe. Contact Hunter Platte today to learn more about Incline Village real estate, Nevada residency considerations, and available homes throughout Lake Tahoe's Nevada North Shore.