Nevada Corporate Net Income Tax Rate
There is no Nevada corporate tax although there is a “Business License Fee or Tax” of $500 that all corporations have to submit with the office of the Secretary of State. This license fee or tax has to be paid either during incorporation or annually on the last day of the anniversary month of incorporation.
Nevada Commerce Tax
The Commerce Tax is a type of annual Nevada business tax that is imposed on those businesses that exceed $4 million in gross revenue within the taxable year. This tax is levied on the “privilege” of engaging in business in this state. You will be required to file the “Nexus Questionnaire” with the Nevada Department of Taxation to register your business for Commerce Tax.
The commerce tax has to be paid by all types of business entities except for entities exempt like Credit union, Non-profit organization, and Business entity organized pursuant to NRS 82 or NRS 84 among others. Whether you have registered a corporation or a proprietorship in the state, if your gross revenue doesn’t exceed $4 million then this Nevada corporate tax will not be levied.
Nevada Personal Income Tax Rate
To have a low tax bill is what most businesses and individual’s desire and the best way to achieve that is to live and register your business in a state that has no income tax. Nevada is one of the 7 states in the nation that does not have any personal income tax.
Average Nevada Sales Tax Rate
Businesses benefit from the fact that there is no Nevada business tax or personal income tax but does that mean, the state doesn’t levy any taxes? It does. Nevada levies sales tax, which was first adopted as a general state sales tax in 1955. Apart from the state sales tax, there are local sales taxes and special district taxes that range from 0 – 3.665 percent. The combined sales tax rate in Nevada currently range from 4.6 to 8.265 percent and this is dependent on the location of the sale like Winchester, Nevada has 4.6% tax rate while Crystal Bay, Nevada has 8.265% tax rate.
A business needs to have a “sales tax nexus” or “significant presence” in the state of Nevada in order to pay Nevada business tax or sales tax. So, when does the state consider a business to have a sales tax nexus? This is only when the following are met:
- A business has a physical office or a place of business
- The business has a warehouse that is holding tangible goods
- The business has an employee present in Nevada
- If the business delivers merchandise in the state using vehicles
- If the business owns real or personal property
- If the business has independent contractors in Nevada
Since there is no Nevada corporate tax, the sales tax is applicable for businesses and is levied on the sale of tangible goods as well as specific services. This tax is normally collected by the business that is selling goods or services and it is remitted to the Department of Taxation.