LAS VEGAS – The Private Bank by Nevada State Bank released the 26th edition of its High Net Worth Report series. The Fall 2016 edition examines the recent fall and rise of incomes among Nevada’s high-earning households and includes insights by guest columnist Stephen M. Miller, director of the Center for Business and Economic Research (CBER) at University of Nevada, Las Vegas.
Highlights from the report include:
According to Internal Revenue Service data, the collective adjusted gross income (“AGI”) of Nevadans fell from a peak of $80.7 billion in 2007 to $67.5 billion in 2009. The state’s high-income households, defined as those with $200,000 or more in annual income, bore the brunt of that decline. During the same time period, total AGI for Nevada’s high-income households collapsed by 41.9 percent from $28.6 billion to
$16.6 billion.
Since that 2009 trough, earnings for the high-income group rebounded 51 percent to $25.1 billion in 2014 (the latest year of available IRS data), which represented nearly a third of Nevada’s total AGI. Additionally, the total number of tax filings by Nevadans earning $200,000 or more has climbed to an all-time high. In 2014, about 39,000 filers were in that income category, which was up nearly 47 percent from the 2009 low of 26,600 and up 9 percent from the pre-recession peak of 35,800 in 2007.
Although total top-end incomes have not fully recovered, more Nevada households are seeing their annual earnings grow to surpass the $200,000 threshold. High- income households in 2014 accounted for 2.9 percent of all Nevada tax filers, outpacing the pre-recession peak of 2.8 percent.
The collapse of capital gains income has been the primary culprit in declining incomes among high-earning Nevadans. In 2007, Nevadans earning over $200,000 per year received over 36 percent of their income from capital gains. By 2014, capital gains income among Nevada’s highest earners dipped below 24 percent. This income distribution left Nevadans more susceptible to losing income through the market changes of the Great Recession, and while income from salary and wages has since recovered, capital gains income remains well below the pre-recession peak.
“While the Great Recession took its toll on Nevada’s economy and families, our state emerged from the downturn even stronger than before,” The Private Bank Executive Vice President Randy Boesch said. “Nevada’s high-earning households have reported significant rebounds in income compared to the lows experienced during the downturn, and as our state continues to build upon its successful economic foundation, I expect to see incomes continue to rise across the board.”
The Private Bank publishes the High Net Worth Report quarterly. Briefings will be made available on Nevada State Bank’s website at www.nsbank.com/HNWreport or by contacting The Private Bank directly at 702.855.4596.
About The Private Bank by Nevada State Bank(@NSBPrivateBank)
The Private Bank by Nevada State Bank provides a full range of personalized financial services for high net worth and high-income clients, including deposit and lending services and wealth management planning.
About Nevada State Bank (@nevadastatebank)
Nevada State Bank, a division of ZB, N.A., is a full service bank offering a complete range of consumer, private and business banking services with branches statewide. Founded in 1959, Nevada State Bank serves 20 communities across the state of Nevada. ZB, N.A.’s parent company is Zions Bancorporation, which is included in the S&P 500 and NASDAQ Financial 100 indices (NASDAQ: ZION). For more information on Nevada State Bank, call 702.383.0009 or access www.nsbank.com.
