If you’re considering living or doing business in Nevada, one of the biggest questions on your mind might be: How much is tax in Nevada? One of the things I and many other business owners love about Nevada is the tax environment. 

Nevada is known for its tax-friendly environment. Nevada offers some major advantages, like no state income tax, but it’s not entirely tax-free.

In this guide, we’ll walk you through the major taxes in Nevada so you can make informed decisions as a resident, entrepreneur, or investor.

1. How Much Is Nevada Income Tax?

Rate: 0%

Nevada is one of the few states with no personal income tax. Whether you’re a freelancer or business owner drawing a salary, you won’t owe a dime in state income tax.

This is a huge benefit over many states that have both income and sales taxes. It also simplifies your annual tax filings.

2. How Much Is Nevada Sales Tax?

Rate: 6.85% – 8.375%

Nevada’s base state sales tax is 6.85%, but local jurisdictions (like Clark County and Washoe County) can add extra percentages. For example:

• Las Vegas (Clark County): 8.375%
• Reno (Washoe County): 8.265%

New Hampshire, Alaska, Wyoming, South Dakota, Florida, and Texas are states with lower sales taxes and no income tax, but depending on what type of business you decide to start, Vegas might be better for you because we’re closer to ports in Los Angeles without dealing with California’s crazy regulatory environment.

As a business owner, you’ll need to get a Nevada sales tax permit to collect these taxes if you sell products or some services. Learn more about the Nevada sales tax.

Sales tax applies to:
Most retail goods and some services, but food for home consumption is generally exempt.

3. How Much Is Nevada Modified Business Tax (MBT)?

Rate: 1.378% (general businesses)

If you own a business with employees, you’ll pay the Modified Business Tax on your gross wages, minus a small exclusion.

• General Businesses: 1.378%
• Financial Institutions: 2.0%
• Exemption: First $50,000 in quarterly wages

Learn more about the modified business tax.

4. How Much Is Nevada Property Tax?

Rate: ~0.5% – 0.75% of assessed value

Nevada has relatively low property taxes compared to national averages. Rates vary by county, and the assessed value is based on 35% of the market value.

For example:

• $300,000 home x 35% assessed value = $105,000
• $105,000 x 0.7% = $735 annual property tax
  

In Clark County, property tax is collected by the Assessor’s office.

5. How Much Is Nevada Commerce Tax (Or Gross Receipts Tax)?

Rate: 0.051% to 0.331% based on industry

If your business has gross revenue over $4 million per year, you may be subject to the Commerce Tax. The rate depends on your NAICS code, meaning the type of business you operate.

Examples:

• Retail: 0.111%
• Construction: 0.083%
• Real Estate: 0.25%

Learn more about the Nevada Commerce tax.

6. How Much Is Nevada Inheritance Tax?

Rate: 0%

As a business owner, you’ll probably want to pass your wealth on to your kids. Good news! Nevada does not have a state inheritance or estate tax. However, estates may still owe federal estate taxes depending on the size of the estate.

7. How Much Is Nevada Capital Gains Tax?

Rate: 0% (state level)

Business owners who file federal taxes as an S-Corp can pay out profits as dividends as long as they pay themselves a reasonable salary.

Given Nevada does not impose a state capital gains tax, you’ll only need to pay the federal capital gains taxes, which can range from 0% to 20% depending on your income bracket. This helps maximize your long-term wealth building.

8. How Much Is Nevada Consumer Use Tax?

Rate: 6.85% – 8.375%

If you buy taxable goods out of state and don’t pay Nevada sales tax at the time of purchase, you’re required to self-report and pay use tax.

Example: You buy $1,000 worth of equipment online from Oregon (which has no sales tax). You’ll owe Nevada’s use tax on that amount.

You’re required to pay it when you file your sales tax report. Learn more.

9. How Much is Nevada Gas Tax?

Rate: About $0.52 per gallon

Nevada gas tax includes:

• Federal excise tax: $0.184/gallon
• Nevada state & county tax: ~ $0.34–$0.38/gallon depending on location.

This contributes to road maintenance and infrastructure. Gas stations/convenience stores will need to pay these taxes. Learn more on the DMV website.

10. How Much Is Nevada Liquor Tax?

Nevada imposes an excise tax on alcoholic beverages, based on alcohol type and volume.

• Beer: $0.16 – $0.22 per gallon
• Wine: $0.70 – $1.30 per gallon
• Spirits: Up to $3.60 per gallon
  

These rates are generally paid at the wholesale level. Learn more about the excise liquor tax. You’ll also need a liquor license to sell alcohol.

11. How Much Is Nevada Tobacco Tax?

Cigarettes: $1.80 per pack
Other tobacco products: 30% of the wholesale price

Nevada’s tobacco taxes fund health programs and anti-smoking campaigns. Make sure to register for the license if you’ll be selling cigarettes or other tobacco products at a smoke shop, convenience store, or other retailer. Learn more about the Nevada Tobacco tax.

12. How Much Is Nevada Cannabis Tax?

Nevada taxes cannabis at two levels:

• Wholesale Cannabis Excise Tax: 15%
• Retail Cannabis Sales Tax: 10% (in addition to standard sales tax)

Recreational cannabis is legal for adults 21+, and the taxes are supposed to support education and public health, but I’m pretty sure they support the politician’s hookers and blow funds instead. Learn more about the Nevada marijuana taxes.

13. How Much Is Nevada Food Tax (Grocery Tax)?

Prepared food: Taxable (same as sales tax)
Grocery food (non-prepared): Exempt

Grocery staples like bread, milk, and fruit are not taxed, but a prepared sandwich from a deli or restaurant is. Grocery stores and gas stations will normally have both taxed and exempt items, while restaurants will normally just have taxed items.

14. How Much Is The Nevada Live Entertainment Tax (LET)?

Rate: 9%

Nevada charges a 9% Live Entertainment Tax on admission, cover charges, and other fees at events with 200+ capacity, such as:

• Nightclubs
• Concerts
• Sporting events

Some small venues, nonprofit events, and certain outdoor activities are exempt. If you are in the entertainment industry make suer you understand Nevada’s LET.

Nevada Seller’s Permit

Cost: $15 plus security bond.

Anyone selling tangible goods must register for a Nevada Seller’s Permit through the Department of Taxation.

Even though the permit is free, you may be required to post a security bond depending on estimated monthly sales tax.

Final Thoughts: Is Nevada Really a Low-Tax State?

Yes, but there are caveats.

Nevada shines for individuals thanks to no income tax, no inheritance tax, and no capital gains tax, but business owners should be aware of the Modified Business Tax, Commerce Tax, and sales-related taxes.

Quick Summary:

Tax Type	Rate
Income Tax	0%
Sales Tax	6.85% – 8.375%
Modified Business Tax	1.378%
Property Tax	~0.5% – 0.75%
Commerce/Gross Receipts Tax	0.051% – 0.331%
Inheritance Tax	0%
Capital Gains Tax	0% (state only)
Gas Tax	~$0.52/gallon
Liquor Tax	Up to $3.60/gallon
Tobacco Tax	$1.80/pack (cigs), 30% (other)
Cannabis Tax	15% (wholesale), 10% (retail)
Food Tax	Exempt (groceries), Taxed (prepared)
Live Entertainment Tax	9%

Want Help Navigating Nevada Business Taxes?

If you’re starting a business in Nevada or relocating here, we offer consulting and setup services to help you stay compliant and minimize your tax burden.

Contact us today to learn how we can help you thrive in the Silver State.