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 1.17% rate on quarterly wages exceeding $85,000.

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.

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, January 2014


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

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 $50 million in net profit Based on $100 million in net profit

Colorado vs. Nevada

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 $50 million in net profit Based on $100 million in net profit

Oregon vs. Nevada

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
     
Texas vs Nevada Washington vs Nevada  

Return to TopCompany 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 the wages exceeds $85,000 for the calendar quarter, the tax is 1.17% of the amount the wage exceeds $85,000. 
  • For example:  if the sum of all wages for the 12/2013 quarter is $100,000.  The tax is $175.50 (0.0117 x $15,000 which is the amount exceeding $85,000).  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 3 1 1 40 42 9
Arizona 22 26 18 49 1 6
California 48 31 50 41 16 14
Colorado 19 21 15 44 28 22
Idaho 18 18 23 23 47 3
New Mexico 38 40 34 45 17 1
Oregon 12 32 31 4 34 15
Utah 9 5 12 20 18 4
Washington 6 30 1 48 20 23

Source: Tax Foundation's State Business Tax Climate Index, 2014 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 3 12.157 1/0.000 1/0.000 1/0.000 1/0.000
Arizona 13 38.802 16/4.540 18/4.540 26/6.968 27/6.968
California 50 82.647 50/13.300 50/13.300 41/8.840 42/8.840
Colorado 8 32.495 17/4.630 19/4.630 8/4.630 10/4.630
Idaho 37 55.975 40/7.400 41/7.400 29/7.400 30/7.400
New Mexico 27 46.219 18/4.900 10/2.450 30/7.600 31/7.600
Oregon 42 65.782 48/9.900 49/9.900 30/7.600 31/7.600
Utah 12 37.692 20/5.000 23/5.000 9/5.000 11/5.000
Washington 5 19.485 1/0.000 1/0.000 1/0.000 1/0.000
State State Rankings
State & Local Property Tax
Ranking/Rate
Adjusted Unemployment Tax
Ranking/Rate
Nevada 31/3.498 32/3.27
Arizona 23/3.270 2/0.98
California 27/3.355 1/0.77
Colorado 34/3.726 6/1.23
Idaho 14/2.588 48/6.49
New Mexico 5/1.864 31/3.02
Oregon 30/3.477 39/4.24
Utah 13/2.553 46/5.45
Washington 17/2.876 41/4.55

Source: Small Business & Entrepreneurship Council , 2013 rankings