Nevada commerce tax by industry

How the commerce tax works

Every business entity with Nevada gross revenue above $4,000,000 in a fiscal year (July 1 to June 30) pays commerce tax on the revenue above $4 million. The rate comes from the business category matching the entity's NAICS code — Nevada assigns 26 categories, from 0.051% for mining up to 0.331% for rail transportation. Businesses in several categories use the category with the largest share of their Nevada revenue.

Businesses with more than $4 million of Nevada gross revenue file a return by August 14, 45 days after the fiscal year ends. Entities below the line may still receive a return from the Department of Taxation; if you do, file it showing the revenue: the state uses it to confirm you owe nothing. Nevada gross revenue is sourced much like other states' sales factors: goods delivered to Nevada customers and services whose benefit is received in Nevada.

The Annual List and business license

Every Nevada LLC and corporation files an Annual List of its managers or officers with the Secretary of State through SilverFlume, due by the last day of its anniversary month, with a $150 fee for most entities (corporations with large authorized stock pay more). The State Business License renews at the same time: $200 for LLCs and most entities, $500 for corporations. Late filings add penalties, and continued non-filing leads to revocation.

Nevada also taxes payroll through the Modified Business Tax once wages pass a quarterly threshold, which matters if you hire in the state.

Worked example

A SaaS company earns $6,000,000 of Nevada revenue. The first $4,000,000 is excluded, leaving $2,000,000 taxable. At an illustrative rate of 0.1%, commerce tax is $2,000; add the $150 Annual List and $200 business license for an LLC and the Nevada total is about $2,350 a year. Check your actual NAICS category before relying on the rate: the same revenue in a 0.331% category would owe $6,620. Our states explorer uses a mid-range estimate for planning.

Is Nevada cheaper than California?

For a company that truly operates in Nevada, usually yes: $350 a year below $4 million of revenue versus California's $800 minimum plus up to $11,790 in LLC fees. But forming in Nevada does nothing about California if your team or customers are there: you'll pay both. Check your exposure with the nexus checker and compare California vs Nevada.