Nevada Business Taxes at a Glance
Nevada has no personal income tax and no corporate income tax. Businesses still have state tax obligations, but they are built differently than in most states. The main ones are a tax on large businesses' gross revenue, a tax on payroll, sales and use tax, and an annual State Business License. BOMCAS helps Nevada businesses handle these alongside their federal returns and payroll.
The Commerce Tax
The Commerce Tax applies to businesses whose Nevada gross revenue for the year exceeds the statutory threshold, currently $4 million. Revenue above that amount is taxed at a rate assigned to the business's industry category, which is based on NAICS codes. Rates differ widely between industries, so the classification is an important part of the return.
Three details catch businesses off guard:
- The Commerce Tax year runs from July 1 to June 30, not the calendar year, so revenue must be measured on that basis.
- A business registered with the Department of Taxation may need to file a return even if its Nevada revenue is below the threshold.
- Commerce Tax paid can generate a credit against the Modified Business Tax, so the two taxes should be reviewed together.
We prepare the return, source revenue to Nevada under the Department's rules, document the industry classification, and track the resulting MBT credit.
The Modified Business Tax on Wages
Nevada employers that pay unemployment insurance generally also pay the Modified Business Tax (MBT). It is calculated quarterly on gross wages paid, reduced by certain qualifying health care costs, with an exemption for wages below a quarterly amount. Financial institutions and mining businesses use a separate category with a different rate.
Because the MBT uses the same wage figures as unemployment reporting, we prepare both from the same payroll data. That keeps the numbers consistent if the Department of Taxation or the Employment Security Division asks questions.
State Business License
Most businesses operating in Nevada need a State Business License, issued through the Secretary of State and renewed every year. Corporations and LLCs typically renew it together with their annual list of officers or managers. Some kinds of businesses are exempt. Counties and cities may require separate local business licenses.
These renewals do not involve tax returns, but missing them can cause a business entity to fall out of good standing. We keep a filing calendar that includes them, so the deadlines are not lost between tax filings.
Sales and Use Tax
Nevada imposes sales and use tax with a statewide base rate and additional county rates. Rates vary by county, and the Department of Taxation publishes them. Sellers need a seller's permit, which is issued by the Department of Taxation and may require a security deposit.
Tangible goods are generally taxable. Most services are not, although businesses that bundle labor with parts need to separate them carefully. Out-of-state sellers above Nevada's economic nexus threshold must register and collect. Businesses that buy equipment or supplies from vendors who do not charge Nevada tax usually owe use tax. We include a use tax review in our monthly bookkeeping.
Gaming, Hospitality, and Entertainment
Hospitality and entertainment make up a large part of Nevada's economy, and their accounting is specialized:
- Gaming licensees report to the Nevada Gaming Control Board and pay gaming taxes under rules separate from the Department of Taxation. We work alongside your compliance team on the general ledger and financial statements, not on gaming license matters.
- Some live entertainment is subject to Nevada's Live Entertainment Tax, depending on the venue and event.
- Restaurants and bars deal with tip reporting, high employee turnover, and inventory cost control.
Construction and Real Estate
Growth in the Las Vegas and Reno areas keeps construction and real estate active. These clients need job costing, progress billing and retainage tracking, and careful sales and use tax treatment on materials. Real estate investors need entity-level accounting, depreciation schedules, and records that support their federal returns.
Moving to Nevada From California
Many individuals and business owners move to Nevada from California. The move can greatly reduce state income tax, but California does not let go easily. The Franchise Tax Board looks at where your home, family, business, and other ties actually are, and it continues to tax income from California sources, such as a business that still operates there or the sale of California property.
We help clients keep records that support a change of residency, prepare the part-year California return in the year of the move, and plan nonresident filings for income that remains California-source. Owners who keep a business in California may also need to address California entity filings separately from their personal move.
Payroll in Nevada
Without state income tax withholding, Nevada payroll is simpler than in many states, but employers still register with the Employment Security Division for unemployment insurance, file quarterly wage reports, and pay the MBT on the same wages. Nevada also has its own minimum wage and paid leave rules for employees. We run payroll, file the federal and state reports, and reconcile payroll to the books each quarter.
Bookkeeping for Nevada Businesses
A Nevada business's books need to answer a few specific questions: what was Nevada gross revenue for the July–June Commerce Tax year, what wages were paid each quarter for the MBT, and what purchases were brought in without sales tax. We set up the chart of accounts and month-end closing to answer those questions directly.
Working With BOMCAS in Nevada
Businesses near the Commerce Tax threshold, employers reconciling MBT with unemployment wages, and owners moving from California can contact BOMCAS for a remote review. Over time, this section will hold pages for specific Nevada cities and services. The BOMCAS home page and our work across the United States describe the rest of the firm. This page is a general overview; the right filings depend on your entity, industry, and revenue.
Talk to BOMCAS About Your Nevada Taxes
Have a question about your Nevada filings, payroll or bookkeeping? Contact BOMCAS or use the contact form below, and we will get back to you as soon as possible. You can also browse all United States services.