STATE RANKING #5

Quick facts: 

-Nevada is one of the only 8 states that has no state income tax.

-Nevada has one of the strongest LLC structures in the country.

None

State
Income
Tax

NONE*

state
business
tax

Low

Property
Taxes

8.32%

Sales
Tax (average)

State Income Taxes in Nevada

The state of Nevada does not have individual income tax, one of only 8 states in the union.

State Business Taxes in Nevada

The state of Nevada does not have business income tax, however it does have a Gross Margins Tax* called the Commerce Tax. The Commerce Tax is assessed on businesses that have over $4 Million in Revenue in Nevada. The tax is based on fiscal year (July 1st through June 30th of the following year) and you only must report to the State if your gross margins are over $4 Million. The average tax rate on Gross Receipts is 0.19%.

Sales Taxes in Nevada

Like many states, Nevada has multiple tax rates. One at the state level and another at the local level. The state rate is 6.85% the average local rate is 1.47% (total average rate for Nevada Sales Tax is 8.32%)

Property Taxes in Nevada

The average property tax rate for residential property in the state of Nevada is 0.66%, making it a very preferable place to own property. There is a cap on how much the state of Nevada can raise property taxes in a given year:

  • Owner-occupied home – Maximum increase is 3% (eg. Your prop tax is $1,000 in year one, they can only raise it to $1,030 in year 2)
  • Rental Property – Maximum increase is 8% (ex. Your prop tax is $1,000 in year one, they can only raise it to $1,080 in year 2)

Unemployment Taxes in Nevada

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three.

  • Wage Base – Nevada has a high wage base of $32,500 for 2020
  • UI Rates – range from 0.30% to 5.40%
  • Schedules – Nevada has only one schedule of rates for UI taxes

Nevada Business Entities - LLCs

Nevada is one of the best states in the country to set up your LLC due to its robust LLC laws. Here are some important facts:

  • Annual fee is $350 per year ($650 if you own a Corporation)
  • First year you file there is an additional fee of $75.00
  • Secretary of State of Nevada website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

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