Taxes & Incentives

The incentives of doing business in Nevada are expansive. Nevada boasts one of the most liberal tax structures in the nation and from a tax-planning perspective, the return on investment in the form of tax saving dollars can be enormous. Explore the numerous advantages of doing business in Nevada.

• Sales Tax Rates by County
• Statewide Average Wage Sheet

Selected Business Assistance Programs

Sales and Use Tax Abatement

Sales and use tax abatements are available for purchases of capital equipment. An application for abatement must be made in advance to the Commission or, if the purchase has been made, within 60 days after the date on which the tax was due. If application for abatement is approved, the taxpayer is eligible for a refund of the tax paid (NRS 372.297 (2)).

Sales and Use Tax Deferral

Sales and use tax deferrals are available for purchases of capital equipment. An application for deferral must be made in advance to the Commission or, if the purchase has been made, within 60 days after the date on which the tax was due. If the application for a deferment is approved, the taxpayer is eligible for a refund of the tax paid (NRS 372.397(2)).

Personal Property Tax Abatement

Partial abatement from personal property taxes is available to companies who locate or expand their business in Nevada. The applicant must apply for abatement not more than one year before the business begins to develop for expansion or operation in Nevada. Applications are due at least 15 working days prior to the Commission meeting.

Modified Business Tax Abatement

A modified business tax (excise tax) is imposed on each employer at the rate of 0.63 percent of the wages as defined in NRS 612.190, paid by the employer during a calendar quarter with respect to employment. 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 percent of the tax otherwise due during the first four years of its operations.

Train Employees Now (TEN)

The Nevada Train Employees Now Program provides short-term, skills based intensive job training to assist new and expanding firms to reach productivity quickly. A customized program is designed covering recruitment, hiring and job training for Nevada residents. It is the State's policy to support firms demonstrating a human-relations commitment through a meaningful wage and fringe benefit policy.

Property Tax for Recycling

Partial abatement for real property taxes for recycling is available to companies who locate or expand their business in Nevada. The applicant must apply for abatement not more than one year before the business begins to develop for expansion or operation in Nevada. Applications are due at least 15 working days prior to the Commission meeting.

Intellectual Property Development

Partial abatement of sales tax, modified business tax and personal property tax is available to intellectual property develoment companies who locate or expand their business in Nevada.  The applicant must apply for abatement not more than one year before the business begins to develop for expansion or operation in Nevada.  Applications are due at least 30 working days prior to the Commission meeting.

Source: Nevada Commission on Economic Development, May 2010

Incentives
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• Minimum State Requirements for Urban Areas
• Minimum State Requirements for Rural Areas
• Minimum State Requirements for Expansions
• Minimum State Requirements for Urban Recycling and Intellectual Property
• Minimum State Requirements for Rural Recycling and Intellectual Property
• Financial Incentives for Energy Efficiency - This summary table provides a snapshop of government and utility financial incentives that promote energy efficiency in the United States.
• Financial Incentives for Renewable Energy - This summary table provides a snapshot of government, utility, and non-profit financial incentives that promote renewables in the United States.

Property Taxes
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Nevada Property Tax Rates by County

Calculating Real Property Taxes

The formula for calculating real property tax is as follows:

Taxable Value x Level of Assessment = Assessed Value
Assessed Value x Tax Rate = Total Real Property Tax

For more information, please see How Property Taxes are Calculated.

Calculating Personal Property Taxes

Using the Cost Conversion Factor tables in the Personal Property Manual, use the following formula to calculate the assessed value. The assessed value is the value on which taxes are calculated.

Actual Cost x Cost Index (for appropriate year) = Cost of Replacement
Cost of Replacement x Percent Good = Taxable Value
Taxable Value x .35 = Assessed Value
Assessed Value x Tax Rate = Total Personal Property Tax

For more information on state incentives or taxes, contact our Economic Development Department at 1.800.824.8856.

Comparisons

Tax Comparisons
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• Arizona vs Nevada
  • Based on $25 million in net profit
  • Based on $50 million in net profit
  • Based on $100 million in net profit
• California vs Nevada
  • Based on $25 million in net profit
  • Based on $50 million in net profit
  • Based on $100 million in net profit
• Colorado vs Nevada
  • Based on $25 million in net profit
  • Based on $50 million in net profit
  • Based on $100 million in net profit
• Idaho vs Nevada
  • Based on $25 million in net profit
  • Based on $50 million in net profit
  • Based on $100 million in net profit
• New Mexico vs Nevada
  • Based on $25 million in net profit
  • Based on $50 million in net profit
  • Based on $100 million in net profit
• Oregon vs Nevada
  • Based on $25 million in net profit
  • Based on $50 million in net profit
  • Based on $100 million in net profit
• Utah vs Nevada
  • Based on $25 million in net profit
  • Based on $50 million in net profit
  • Based on $100 million in net profit
• Washington vs Nevada

Company Paid Taxes

Payroll taxes

Effective July 1, 2009 - SB429 changes the tax rate for general business employers and created a tiered system.  

• If the sum of all taxable wages, after health care deductions, paid by the employer does not exceed $62,500 for the calendar quarter, the amount of tax is 0.5% of the sum of those wages (0.005). 
• If the sum of all the wages paid by the employer exceeds $62,500 for the calendar quarter, the tax is $312.50 plus 1.17% of the amount the wage exceeds $62,500. 

For example:  if the sum of all wages for the 12/09 quarter is $101,000.  The tax is $312.50 plus $450.45 (0.0117 x $38,500 which is the amount exceeding $62,500) = total tax due is $762.95.  For more information please visit the Nevada Department of Taxation.

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 (UI) taxes at a rate of 3 percent 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 you are eligible for experience rating, your rate is determined by two factors:

• Your reserve ratio, which is a measure of your previous experience with unemployment (See page 17 of the Nevada Unemployment Compensation Program employer handbook); and

• 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 (Department of Labor recommends sufficient funds to pay benefits for 1-2 years).

Business Tax Climate Index Rankings

Source: Tax Foundation's State Business Tax Climate Index, 2010 rankings
Note: Rankings do not average across to total

Business Tax Index

Source: Small Business & Entrepreneurship Council , 2010 rankings