Economic Development

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.

Incentives

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Incentive Programs
Sales and Use Tax Abatement

Sales and use tax abatement on qualified capital equipment purchases with reductions in the rate to as low as 2%.

Personal Property Tax Abatement

An abatement on personal property not to exceed 50% over a maximum of 10 years.

Modified Business Tax Abatement

An abatement of 50% of the 1.475% rate on quarterly wages exceeding $50,000.

Train Employees Now (TEN)

Matching grants of up to 75% for training programs for eligible employees

Real Property Tax Abatement for Recycling

Up to 50% abatement for up to 10 years on real and personal property for qualified recycing businesses.

Data Center Abatement

An abatement up to 75% for personal property and reduction of sales tax to 2%.

Aviation Parts Abatement

Personal property tax abatement up to 50% and sales and use tax reduction to 2%.

Silver State Works Employee Hiring Incentive

Employers can receive as much as $2,000 for each state-qualified employee hired.

Source: Nevada Governor's Office of Economic Development, August 2016


Return to TopProperty 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

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

Return to TopTax Comparisons
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Western States Business Cost Comparison Matrix

 

Return to TopCompany Paid Taxes

General Business

The tax rate for most General Business employers, as opposed to Financial Institutions, is 1.475% on wages after deduction of health benefits paid by the employer and certain wages paid to qualified veterans. However, the first $50,000 of gross wages is not taxable. For example: if the sum of all wages for the 9/15 quarter is $101,000 after health care and qualified veteran wage deductions, the tax is $752.25 ($101,000 – $50,000 = $51,000 x 0.01475). These are changes that became effective July 1, 2015 pursuant to SB283 of the 2015 legislative session. A tax return will still need to be filed by all employers, even if the taxable wages are less than $50,000 and tax due is $0.

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).

Return to TopBusiness Tax Climate Index Rankings

State Overall Rank Index Rank
Corporate Tax Individual
Income Tax
Sales Tax Unemployment
Insurance Tax
Property Tax
Nevada 5 4 1 39 42 7
Arizona 24 22 19 49 9 6
California 48 35 50 40 13 13
Colorado 18 15 16 44 33 12
Idaho 19 24 23 20 45 4
New Mexico 35 27 34 48 7 1
Oregon 11 37 31 4 27 10
Texas 10 41 6 37 15 34
Utah 9 5 12 16 19 2
Washington 12 28 6 45 23 24
Wyoming 1 1 1 12 30 36

Source: Tax Foundation's State Business Tax Climate Index, 2016 rankings
Note: Rankings do not average across to total

Return to TopBusiness Tax Index

State State Tax Score State Rankings
Rank BTI Score Personal
Income Tax
Ranking/Rate
Capital
Gains Tax
Ranking/Rate
Corporate
Income Tax
Ranking/Rate
Corporate
Capital Gains Tax
Ranking/Rate
Nevada 2 12.197 1/0.00 1/0.00 1/0.00 1/0.00
Arizona 13 36.417 17/4.54 14/3.63 16/5.50 18/5.50
California 50 84.547 50/13.30 50/13.30 43/8.84 44/8.84
Colorado 9 32.607 19/4.63 21/4.63 10/4.63 12/4.63
Idaho 34 54.548 42/7.40 45/7.40 32/7.40 33/7.40
New Mexico 25 45.19 20/4.90 11/2.45 28/6.60 29/6.60
Oregon 43 66.979 49/9.90 49/9.90 33/7.60 34/7.60
Texas 3 12.395 1/0.00 1/0.00 1/0.00 1/0.00
Utah 15 37.717 22/5.00 25/5.00 11/5.00 13/5.00
Washington 5 18.846 1/0.00 1/0.00 1/0.00 1/0.00
Wyoming 4 14.444 1/0.00 1/0.00 1/0.00 1/0.00
State State Rankings
State & Local Property Tax
Ranking/Rate
Adjusted Unemployment Tax
Ranking/Rate
Nevada 14/2.5 34/3.6
Arizona 20/2.7 7/1.2
California 22/2.8 1/0.81
Colorado 24/2.9 16/1.9
Idaho 15/2.5 44/4.9
New Mexico 5/1.9 34/3.6
Oregon 32/3.3 39/4.1
Texas 36/3.6 10/1.5
Utah 17/2.6 47/5.3
Washington 23/2.8 43/4.7
Wyoming 41/4.2 48/5.5

Source: Small Business & Entrepreneurship Council , 2016 rankings