Nevada Tax Guide 2026

No personal income tax — and the constitutional bar

Nevada's constitution PROHIBITS a state personal income tax (Nev. Const. Art. 10, §1, ratified 1956): 'No income tax shall be levied upon the wages or personal income of natural persons.' Amending this would require: 1. Approval by two consecutive sessions of the Legislature (each session being 2 years apart), AND 2. Voter approval by referendum This constitutional bar makes income tax repeal in Nevada a 5–6 year minimum process — providing certainty for residents and businesses. The absence of personal income tax extends to: • W-2 wages • Self-employment income • Capital gains • Interest, dividends, rental income • Retirement distributions, Social Security, pensions Residents file no state return.

Sales and use tax

State rate 4.6% (NRS 372.105) plus mandatory county Local School Support Tax 2.6% = 6.85% state-equivalent minimum + optional county/city local taxes: • Clark County (Las Vegas, Henderson): 8.375% combined • Washoe County (Reno, Sparks): 8.265% • Carson City: 7.6% • Elko County: 7.1% (rural minimum) • Combined statewide weighted average: ~8.24% Groceries: EXEMPT. Prescription drugs: exempt. Clothing: taxable. Most services: exempt. Economic nexus (NRS 372.7245): $100,000 in cumulative sales OR 200 transactions. Nevada has a HIGH lodging tax in Clark County: 13.38%–13.88% combined (room tax + sales) on Strip hotels — significant for tourism economics.

Commerce Tax — Nevada's business gross receipts tax

NRS Chapter 363C (enacted 2015, SB 483) imposes a Commerce Tax on businesses with NEVADA-SOURCED GROSS REVENUE exceeding $4 million per fiscal year (July 1 – June 30). Rates vary by INDUSTRY (27 NAICS-based categories): • Mining: 0.051% • Construction: 0.083% • Manufacturing: 0.091% • Wholesale trade: 0.101% • Retail trade: 0.111% • Transportation/warehousing: 0.118% • Information: 0.253% • Finance/insurance: 0.111% • Real estate/rental/leasing: 0.250% • Professional/technical services: 0.181% • Health care/social assistance: 0.190% • Accommodation: 0.200% • Educational services: 0.281% • Other services: 0.142% • Unclassified: 0.128% • Rail transportation: 0.331% (highest) Small and mid-size businesses (<$4M Nevada gross) owe NO Commerce Tax. The $4M filing threshold makes this a true 'big-business' tax that protects the vast majority of Nevada employers. No deductions for COGS or expenses; tax is on GROSS revenue. Return due August 14 (45 days after fiscal year end).

Modified Business Tax (MBT) — Nevada's payroll tax

Nevada has no income tax but DOES tax employer payroll at a small rate (Modified Business Tax): • NRS 363A (financial institutions): 1.475% on quarterly Nevada wages exceeding $50,000 • NRS 363B (general businesses): 1.378% on quarterly Nevada wages exceeding $50,000 The $50,000/quarter exemption shields small employers (~$200k/yr annualized) from MBT entirely. MBT credit: amounts paid for health insurance benefits ON BEHALF OF EMPLOYEES can offset up to 50% of MBT liability — incentivizing employer-sponsored health benefits. MBT credits against Commerce Tax: 50% of Commerce Tax paid can credit against the MBT — preventing double burden on large employers (NRS 363A.130 / 363B.115). MBT is filed and paid QUARTERLY (last day of month following quarter end).

Property tax and gaming

Statewide average effective ~0.49% — among the lowest in the US. Clark County (Vegas) ~0.65%, Washoe (Reno) ~0.75%, Carson City ~0.61%. Nevada uses fractional assessment: 35% of taxable value (which is depreciated replacement cost less land value + market land value). Property tax abatement (NRS 361.4722): primary residences capped at 3% annual increase; secondary/commercial capped at 8% — meaningful in appreciation markets. Gaming tax (NRS 463.370): 3.5% on first $50k monthly gross gaming revenue; 4.5% on $50k–$134k; 6.75% on excess. Plus per-machine annual fees. Live Entertainment Tax (LET, NRS Chapter 368A): 9% on admission + food/merchandise at venues with >200 capacity (concerts, sports, club events) — partially funds tourism marketing. No estate, inheritance, or gift tax. No unemployment-tax-paid-by-employee (employer-only). Employer UI tax: 0.25%–5.4% on $40,600 wage base. The combination of no income tax + low property tax + business-only Commerce Tax (which mostly hits large operators) makes Nevada one of the most tax-favored states for high-earning self-employed and small business owners. The trade-off is the relatively high combined sales tax (Clark County 8.375%) and the constant LET/lodging tax that hits residents indirectly through tourism economy interactions.

Worked example: Lucia Vargas, Las Vegas-based remote tech consultant (single, 2026)

Lucia operates a single-member LLC providing tech consulting to out-of-state clients. Net SE income $230,000. Owns a $475,000 Henderson home.

Federal: SE tax + federal income tax + §199A QBI (consulting = SSTB; phases out above $241,950 single 2026, so she's just under and likely gets full or near-full QBI). Nevada: Personal income tax: $0 (constitutional bar) Sales tax: 8.375% Clark County on taxed purchases Property tax: $475,000 × 35% assessment × ~3.50 mills (~$1.225 effective rate after limits) = ~$3,000/yr Commerce Tax: Her LLC has gross < $4M → $0 owed (below threshold). MBT: She is the sole owner-employee and does not pay herself W-2 wages (single-member LLC owner takes draws, not wages). MBT applies to EMPLOYEE wages — owner draws are not wages → $0 MBT. If she hired one employee at $60k/yr ($15k/quarter): MBT applies on quarterly wages > $50k → $15k − $50k threshold = $0 (under threshold each quarter) → $0 MBT. If she hired ten employees at $60k/yr each ($150k/quarter total wages): $150k − $50k = $100k taxable × 1.378% = $1,378/quarter = $5,512/yr MBT. Lucia's total Nevada state burden: $0 income tax + ~$3,000 property + sales tax on purchases. Net: among the lowest tax jurisdictions in the US for her income level.

Statute references

• Constitutional bar on personal income tax — Nev. Const. Art. 10, §1
• Sales tax — NRS 372.105
• Economic nexus (Wayfair) — NRS 372.7245
• Commerce Tax (business gross receipts > $4M) — NRS Chapter 363C (SB 483 of 2015)
• Modified Business Tax (financial 1.475%) — NRS 363A
• Modified Business Tax (general 1.378%) — NRS 363B
• Property tax abatement — NRS 361.4722
• Gaming tax — NRS 463.370
• Live Entertainment Tax — NRS Chapter 368A

Related pages

• State Tax Comparison →
• Self-Employment Tax →
• Wayfair Nexus Tracker →