We’ve packed this PERSPECTIVE Update with the education and workforce information you need to know, also featuring columns from United Way of Southern Nevada CEO Bob Morgan and Applied Analysis Principal Brian Gordon.
Southern Nevada Tax & Operating Structure
The Southern Nevada Business Advantage
The low-tax climate in Southern Nevada is one of the most-cited reasons to do business in Nevada. This tax structure clearly distinguishes Nevada as providing a business environment very few states can match.
Due to such a competitive operating environment, companies doing business in Nevada can save millions of dollars by having a long-term presence in Nevada.
The LVGEA maintains an operating cost comparison database and can tell you how operating costs for your business or businesses in a similar industry compare to other U.S. metropolitan regions. Contact us to run a free operating cost comparison (See a sample comparison).
- NO personal income tax
- NO franchise tax
- NO unitary tax
- NO inventory tax
- NO inheritance tax
- NO estate tax
- Sales Tax (1) – 8.1%
Site Selection Magazine:
No. 3 Business Tax Climate
No. 2 Small Business Policy
Sales Tax: 8.15% in Clark County, Nevada. Assessment varies per county. Nevada does not charge sales tax on food items for home use, medicine, or services.
Property Tax: $3.1015 (Weighted Average) per $100 assessed value (assessment ratio 35%)* * Weighted average for Clark County. Actual dollar amounts vary by township/city with a cap of $3.64 per $100.00 of assessed valuation, plus 2 cents added to the state debt component for capital projects, for a total of $3.66.
Modified Business Tax: No tax on gross wages less than $50,000 per calendar quarter and 1.45 percent on gross wages above $50,000 per calendar quarter. Employers may deduct dollars paid for employee health insurance or health benefit plan. (The rate on financial institutions and mining companies is 2 percent)
Unemployment Insurance Tax for New Employers Employers starting a new business in Nevada must pay unemployment insurance (UI) tax at a rate of 2.95 percent (.0295) of wages paid to each employee up to the taxable wage limit. 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 this rate will be determined under the “Experience Rating” system. There is an additional .05 percent (.0005) tax for the Career Enhancement Program (CEP). Taxable wage limit: $27,800
Business License Fee: State Business License $200 – $500 annual fee. The business license fee for corporations is $500. The business license fee for all other entities is $200.
Commerce Tax: The Commerce Tax was enacted by the Legislature in 2015. This tax applies to businesses with annual gross receipts in excess of $4 million. Rates vary by industry type. Fifty percent of a businesses’ commerce tax can be applied as a credit against the modified business tax. The tax is paid annually and begins to accrue on July 1, 2015, but is not first payable until August 15, 2016. (For individual business rates, please see the Nevada Office of the Secretary of State or refer to this document.)
Live Entertainment Tax: The Nevada Live Entertainment Tax is a 9 percent tax levied on admission charges for live entertainment. Significant changes to the law are effective October 1, 2015: The LET was reformed to become more broadly applicable and remove differences between gaming and non-gaming properties. The rate of the LET was decreased from 10% to 9%. The LET no longer applies to food, beverages or merchandise except in limited circumstances. The LET retains its structure as a tax based on an admission charge for live entertainment.
For an in-depth look at Southern Nevada taxes and tax rates, please see this document.