Our picks for best bookkeeping services
||Visit QuickBooks Live|
Nevada’s minimum sales tax rate is 6.85 percent. It has several discretionary taxes for various counties. The state also has several special taxes, such as alcohol and tobacco. Businesses need a sales tax certificate to make tax-exempt purchases.
Types of taxes
Nevada’s taxes include a sales and use tax rate, discretionary taxes for local jurisdictions, and several special taxes. Businesses can download tax reports and mail payments or file reports and remit payments online.
Sales and use tax for sales of goods
The base sales and use tax rate is 6.85 percent. If a business taxpayer purchases taxable items without paying sales tax and stores or uses those items, it must pay use tax. Several counties have additional tax rates added on top of the base state sales tax rate.
Nevada cities and counties may implement a lodging tax. To determine the lodging tax for your business location, visit local government web pages. For example, the City of Elko has a 14-percent lodging tax. The tax is listed on the lodging tax return for the city.
Nevada requires businesses to charge sales tax on vehicle rentals for 31 or fewer days. On top of the sales tax, the business owner must add the county vehicle rental fee and the 10-percent government service fee, which is imposed on the subtotal only. For example, if the total of the lease is $560 before taxes, the 10-percent fee is levied on $560.
Marijuana excise tax
Wholesalers and retailers must pay a marijuana excise tax. The cultivation facility pays 0.15 percent when it sells the marijuana to a retailer.
The retailer must also collect 10 percent from its customers. The marijuana excise tax is applicable for adult use and medical use.
Food and beverage tax
Nevada does not have a separate tax rate for prepared foods and beverages. It is taxed at the state sales tax rate of 6.85 percent, plus county and city taxes. Prepared food is usually sold with eating utensils, prepared in a restaurant, sold heated, or has two or more ingredients sold as a single item.
For example, if a convenience store sells cooked hotdogs, hot coffee or prepared salads, those items are taxable. A hotdog with chili on top is taxable.
Retailers of beer and alcohol do not have to collect an additional tax. They must, however, collect the state, county, and city sales taxes for their business locations. Nevada taxes alcohol at the supplier and wholesaler levels. Suppliers, importers and wholesalers have several licenses and taxes that they must pay. The cost is passed onto the retailers, who recoup those costs from their customers.
Nevada has a cigarette tax of $1.80 per pack of 20 and $2.25 per pack of 25. Other tobacco products are taxed at 30 percent of the wholesale price. Vaping products are considered tobacco products and are also taxed at 30 percent of the wholesale price. Licenses are valid for one year. The business must renew its license every year. Cities and counties might require additional licenses.
Live entertainment tax
Nevada has a Live Entertainment Tax. If a business has an occupancy rate of 200 to 7,499 patrons, the tax is 10 percent on admission charges, food, and refreshments sold at the event.
If a venue has an occupancy rate of 7,500 or more, the tax rate is 5 percent on admission charges only.
Discretionary taxes (Local tax rates)
Nevada’s local tax rates are applied to several county uses, including public roads, open space, V&T Railroad bonds, infrastructure, flood control, and more. The county discretionary rates are as follows:
- Carson City: 0.250 percent each for public roads and open space; 0.125 percent each for V&T Railroad bonds and infrastructure. The total county tax is 0.75 percent.
- Churchill: 0.250 percent each for public roads, the Local Government Tax Act and infrastructure. The total county tax is 0.75 percent.
- Clark: .250 percent each for flood control, regional transportation, Southern NV Water Authority, regional transportation 1/4-percent increase, police support, police officers, and the state education fund. The county’s total tax is 1.525 percent.
- Douglas: .250 percent for miscellaneous facilities and services.
- Elko: .250 percent for infrastructure.
- Lander: .250 percent for water treatment.
- Lincoln: .250 percent for school and public utilities.
- Lyon: .250 percent for infrastructure and public safety.
- Nye: .250 percent for public roads and .500 percent for public safety. The total county tax is .75 percent.
- Pershing: .250 percent for infrastructure and public safety.
- Storey: .250 percent each for tourism, V&T Railroad Commission, school, and public utilities. The total county tax is .75 percent.
- Washoe: .125 percent each for regional transportation, flood, and public safety, and railroad grade project. .250 percent each for the Local Government Tax Act and regional transportation. .540 percent for school facilities. Total county taxes are 1.415 percent.
- White Pine: .125 percent each for public roads, infrastructure, and public safety, swimming pool maintenance. .125 percent for school capital improvement. The total county tax is .875 percent.
Add the county tax to the state minimum tax rate to figure out the total tax due. For example, the total tax for Clark County is 1.525 percent. Add that amount to 6.85 percent for a total tax of 8.375 percent.
Registering for and filing for Nevada’s tax liability
The best way to pay Nevada sales tax is to register online. Businesses can also download the Sales and Use Tax Return Form and file it manually. If you sell items from a brick and mortar, enter the information on the business’s county line.
If you deliver items to someone in a different county, enter those sales on that county’s line. For example, the business is in Clark County, but you delivered a sofa to Elko County. You would charge the customer Elko’s sales tax rates. However, if the customer purchased the sofa from the business and hauled the sofa himself, you would charge Clark County’s sales tax.
Due dates for Nevada’s retail sales taxes
Sales and use taxes are due on the last day of the month following the collection period. Thus, if you pay on a monthly basis, February taxes are due on or before March 31.
If you pay on a quarterly basis, the first quarter’s taxes (January through March) are due on or before April 30.
Calculating Nevada’s sales and use tax
Add any local sales taxes to the state’s minimum sales tax. Multiply the percentage by the amount of the sale, then add it to the sale. For example, Widget A costs $100. The state has a tax of 6.85 percent. A business located in Elko County has a .250 percent tax. A business would charge 7.10 percent sales tax for a total sale of $107.10.
Nevada sales tax holiday
Nevada does not have a sales tax holiday.
Nevada sales tax exemptions
The State of Nevada has several tax exemptions, including:
- Proceeds of mines.
- Motor vehicle fuels.
- Animals and plants intended for human consumption.
- Farm machinery and equipment.
- Certain medical equipment.
- Food for human consumption, as long as it is not prepared food.
- Gas, electricity, and water.
- Manufactured homes and mobile homes.
- Certain sales to the United States government.
- Certain sales to Nevada and its counties, cities, and political subdivisions.
Remote and marketplace sellers
Remote sellers and marketplace sellers must register for and collect Nevada sales tax if they had $100,000 or more in retail sales in Nevada or 200 or more separate transactions for goods delivered into the state in the previous year.
However, most small businesses also register for and collect Nevada sales taxes as a convenience to their customers. If a business that does not meet the threshold does not collect Nevada sales tax, it should notify its customers, as the customers are required to pay Nevada’s use tax when a remote seller does not collect sales tax.
The state sales tax rate and use tax rate for 2022 is 6.85 percent. Nevada counties also have additional sales tax rates that a business must collect.
You can apply for a tax exemption certificate by completing one of the following:
- Application for Sales/Use Tax Exemption for Religious, Charitable, or Educational Organizations.
- Nevada Resale Certificate.
Nonprofit organizations must submit the application to the Department of Taxation.
Businesses must keep a copy of the Resale Certificate and give a copy to businesses where they purchase goods for resale.
It depends on the state’s laws. In most cases, businesses with tangible personal property out of state collect other states’ sales taxes whether they meet the thresholds as a convenience to their customers.
Yes. If a return asks for gross sales, enter taxable and non-taxable sales.
Yes. Remote sellers must collect state sales taxes and the local sales tax rates as set by Nevada counties.