Why You Should Move Your Next Startup to Reno

The race for Amazon’s HQ2 has concluded and it’s not Reno. But the race for Silicon Valley HQ2 remains open. Small startups have historically played a vital role in the Silicon Valley ecosystem, but they’re now being squeezed out—priced out of housing, outcompeted for talent by Big Tech, and burdened by California’s steep tax rates. As a result, an exodus is already underway, with founders and early employees fanning out across the country in search of friendlier environments to build in.

Among the cities often floated—like Portland, OR, or San Diego, CA—some are undeniably attractive. But for this article, let’s focus on a more pragmatic filter: tax-free states. The financial logic is clear. A typical engineer in Silicon Valley earns $180K–$250K. In California, that salary is taxed heavily—not only does your startup pay high corporate and payroll taxes, but your employees lose a significant chunk of their income to state taxes. Combine that with $6,000–$10,000 moving costs and only a slight drop in housing prices, and relocating to another high-tax city just doesn’t make sense.

Let’s then narrow it down to the most talked-about zero-income-tax states for startups: Seattle, WA; Las Vegas, NV; Austin, TX; Boise, ID; and Reno, NV.

Seattle, WA – Too expensive. Housing costs are nearly identical to the Bay Area, and competition for talent is fierce.

Las Vegas, NV – Business-friendly but not family-friendly. The extreme summer heat and nightlife-first culture make it a tough sell for young families.

Austin, TX – A dynamic startup scene, yes—but the sweltering summer heat, rising prices, and increasing traffic congestion are making it feel more like the next Silicon Valley than an alternative to it.

Boise, ID – Quaint and affordable, but too windy, too cold, and a bit too far from the heart of tech.

Enter Reno, NV.

Reno offers the best of all worlds:

• No state income tax
• Mild, four-season climate
• 4-hour drive to San Francisco Bay Area (and it can be autonomous driving!)
• World-class outdoor access (Lake Tahoe, skiing, hiking, mountain biking)
• A budding arts and tech community (yes, Burning Man is born here)
• And significantly lower housing and office rental prices than coastal hubs

This is precisely why Tesla chose Reno to build its first Gigafactory, and why Blockchains LLC, led by entrepreneur Jeffrey Berns, is developing a blockchain-powered smart city in nearby Storey County. Switch, the data infrastructure giant, also built one of the world’s largest data centers here.

If you’re into hardware, you’ll appreciate the proximity to Tesla, Panasonic, and industrial partners. If you’re building in AI or blockchain, Nevada’s forward-looking legislature and relatively light regulation make experimentation easier. Even Levi’s operates its innovation lab nearby in Henderson, NV—hinting at a broader trend of legacy companies seeking space and speed. Even Levi’s, one of the most iconic American brands, owes part of its legacy to Reno. The signature riveted jeans—the very innovation that made Levi’s durable and globally famous—was co-invented by Jacob Davis, a Reno-based tailor. He partnered with Levi Strauss in 1873 to patent the idea, and the rest is history.

If that happened today, it would be the equivalent of a startup acquihire—Reno founder, San Francisco capital, global impact.

That same spirit of invention still lives here. Reno is a place where builders can quietly create something meaningful—without getting drowned out by the noise of the Valley.

Reno may not be the obvious choice for everyone. But for mission-driven teams looking to build fast, keep costs down, retain talent, and still enjoy a stunning quality of life—it may just be the smartest move you’ll make this decade.