Nevada Tax Incentives

Nevada’s exceptional tax climate is one of the best reasons to relocate or expand a business here. Tax advantages in the Silver State include:

  • No corporate income tax
  • No personal income tax
  • No inventory tax
  • No franchise tax
  • No inheritance or gift tax
  • No estate tax
  • No unitary tax
  • Competitive sales and property tax rates
  • Minimal employer payroll tax (0.7% of gross wages with deductions for employer paid health insurance)

A Quick Look at Taxes in Washoe County:

Sales and Use Tax Abatement
Partial sales and use tax abatements, which reduce the applicable tax rate to 2%, are available for purchases of capital equipment.

Sales and Use Tax Deferral
Sales and use tax deferrals are available for purchases of capital equipment.

Personal Property Tax Abatement
Partial abatement from personal property taxes is available to companies locating or expanding a business in Nevada. The abatement can be as much as 50% of due taxes for up to 10 years.

Modified Business Tax Abatement
A modified business tax (excise tax) is imposed on each employer at the rate of 0.63% of the wages. Effective July 1, 2005, a partial abatement of tax during the initial period of operation is available. Qualifying employers may apply for an abatement of 50% of the tax otherwise due during the first four years of its operations.

Real Property Tax for Recycling
Partial abatement of real property taxes for recycling is available to companies relocating or expanding their business in Nevada.

Property Tax Abatements for Renewable Energy
Nevada’s Renewable Energy Tax Abatement program awards partial sales and use tax and partial property-tax abatements to eligible renewable energy producers. Click here for more information.

Tax Comparisons

Company Paid Taxes

Payroll taxes
Effective July 1, 2013, SB475 amended the Modified Business Tax

  • If the sum of all taxable wages (after health care deductions) paid by the employer does not exceed $85,000 for the calendar quarter, there is no tax on those wages.
  • If the sum of all taxable wages exceeds $85,000 for the calendar quarter, the tax is 1.17% of the amount exceeding $85,000.

Inventory Tax
Nevada has no inventory tax on inventories held for sale within Nevada or for interstate transit.

Company Paid Unemployment
New employers pay unemployment insurance taxes at a rate of 3% of taxable wages until they are eligible for experience rating. The employer retains this rate for a period of 14 to 17 calendar quarters (depending on the quarter in which he becomes subject to the law), after which his rate will be determined under the "Experience Rating" system.

Once eligibility for experience rating has been met, the rate is determined by two factors:

  • The reserve ratio, a measure of your previous experience with unemployment
  • The reserve ratio schedule in effect. The administrator establishes, by regulation, the schedule to be in effect for each calendar year. Changes to the schedule are made according to the trust fund balance, economic conditions and forecasts. The law provides for an annual test of the trust fund for a guideline. The balance should be sufficient to pay benefits for one full year, disregarding any additional income.

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