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Nevada State Tax

Nevada State Tax

Nevada State Tax: Your Comprehensive Guide

When it comes to taxes, Nevada is known as a tax-friendly state. With no state income tax and low property taxes, it’s no wonder many retirees flock to the Silver State. However, there are still taxes that residents and businesses need to be aware of in order to remain compliant and avoid penalties. In this comprehensive guide, we’ll cover all there is to know about Nevada state tax, from sales tax to estate tax and more.

Sales Tax

One of the most common taxes that Nevada residents and visitors need to pay is sales tax. It’s applied to the sale of tangible goods and certain services, such as hotel stays and car rentals. The state sales tax rate is 6.85%, with some counties and cities adding their own local sales tax on top of that. For example, the total sales tax rate in Las Vegas is 8.375%. However, there are some exceptions to the rule. For instance, groceries and prescription drugs are exempt from sales tax.

Business Taxes

If you’re planning to start a business in Nevada, you’ll need to be aware of the various taxes that apply. One of the main taxes that businesses need to pay is the Modified Business Tax (MBT), which is a payroll tax. The MBT applies to businesses that pay wages of $50,000 or more per quarter. The tax rate varies based on industry, with rates ranging from 0.051% to 1.56%. Businesses also need to pay a Commerce Tax, which is based on gross revenue. The tax rate depends on the industry, with rates ranging from 0.063% to 0.331%.

Property Taxes

Nevada has some of the lowest property taxes in the country, with an effective property tax rate of just 0.69%. This means that for a property worth $300,000, the annual property tax bill would be around $2,070. However, it’s important to note that property taxes can vary greatly depending on location and property type. For example, a commercial property will generally have a higher property tax rate than a residential property.

Estate Tax

Unlike some states, Nevada does not have an inheritance tax. However, there is still an estate tax that residents need to be aware of. The estate tax applies to estates that have a gross value of more than $1 million. The tax rate ranges from 0.8% to 16%, with the exact rate depending on the size of the estate. It’s worth noting that the estate tax only applies to the portion of the estate that exceeds $1 million.

Excise Taxes

Excise taxes are taxes that are applied to specific goods, such as tobacco, alcohol, and gasoline. In Nevada, there is a tax on all tobacco products, including cigarettes, cigars, and vaping products. The tax rate is $0.80 per pack of cigarettes and 30% of the wholesale price for other tobacco products. There is also an excise tax on alcohol, with rates ranging from $0.16 to $4.60 per gallon depending on the type of alcohol. In addition, there is a tax on gasoline and diesel, with rates varying based on location and type of fuel.

Other Taxes

Aside from the taxes mentioned above, there are a few other taxes that Nevada residents might need to be aware of. For example, there is a Live Entertainment Tax of 9% that applies to certain forms of entertainment, such as concerts and sporting events. There is also an Insurance Premium Tax, which is a tax on premiums paid for insurance policies. The tax rate is 3.5% for non-life insurance policies and 2% for life insurance policies.

Taxation Appeals

If you receive a notice from the Nevada Department of Taxation stating that you owe a specific amount, you have the right to appeal the decision. You can either appeal directly to the department or file a formal petition with the Board of Equalization. If you choose to appeal to the department, you must do so within 30 days of receiving the notice of tax due. If you choose to file a formal petition with the Board of Equalization, you have 90 days from the date of the notice to do so.

Conclusion

In conclusion, while Nevada is known as a tax-friendly state, there are still taxes that residents and businesses need to be aware of. From sales tax to estate tax, and excise taxes to business taxes, there are a variety of taxes that vary based on location, industry, and product. Being aware of these taxes and understanding your obligations can help you remain compliant and avoid penalties. If you have any questions about Nevada state tax, it’s always best to consult with a qualified tax professional.


Nevada has one of the lowest tax burdens in the United States, owing to a lack of personal income tax.  The state relies on higher sales and excise taxes for income.  There are also property taxes that must be given consideration.

Nevada personal income tax – None

Nevada state sales tax – 6.85%, with considerations for optional local sales tax rates, up to .875%.  Combined sales taxation can be as high as 8.1% in some areas.  Food and prescription drugs are exempt.  This sales tax is higher than the national median.

Nevada excise taxes

Taxes will be assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes.

– $.80 per package of 20 cigarettes

– $3.60/gallon on spirits

– $.70 per gallon on table wine

– $.16 per gallon of beer

– $.331/gallon on gasoline

Local governments can levy additional taxes on gasoline, making Nevada gasoline taxes among the highest.  There are also room occupancy taxes that reflect revenue on tourism in Nevada.

Nevada inheritance tax

Only federal laws are in effect.  Estate taxes have been eliminated since 2005.  Deaths prior to Jan 2005 must be filed for taxation.

Nevada payroll taxes

State Disability Insurance – none

State Unemployment Insurance – .30% to 5.40%, wage base is $26,600.  New employer contribution is 2.95%.  There is a .05% rate for the Career Enhancement Program is the maximum 5.4% rate is not assigned.

State minimum wage is 8.25/hr without health insurance, $7.25 with health insurance.

Nevada state property tax

Both state and local governments assess property taxes.  Cities, school districts and towns can also collect property taxes.  Properties are assessed on a local level and recorded on the state level.  State authorities will make considerations for senior citizens with a heavy tax burden.  Properties are revaluated every year and properties are taxed 35% of the fair market value of the property.

Nevada state corporate tax

There is no Nevada state corporate income tax.

Exemptions

Retirement income is not taxed as this is personal income.  Homeowners 62 and older can receive a rebate of at least $500 and up to 90% of taxes paid if their income is below $28,677.