Nevada Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Sales tax at a glance

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Nevada sales tax rates & calculations in 2023

The Nevada sales tax rate for 2023 is between 4.6% and 8.265%. This comprises a base rate of 4.6% plus local rates up to 3.625%. Depending on the local sales tax jurisdiction, the total tax rate can be as high as 8.265%.

List of local sales tax rates in Nevada

You can look up the full table of sales tax rates in each city and county in Nevada. Here's a snippet: 

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Recent tax rate changes in Nevada

There have been no recent Nevada state or local sales tax rate changes. The rates have remained unchanged since 2015.

FAQs

How do you calculate Nevada sales tax?

To calculate Nevada sales tax, multiply the purchase price by the combined state and local rate. For example, with an 8.375% total rate, the sales tax on a $100 purchase would be $8.375.

What are the penalties for not paying Nevada sales tax?

Penalties include fines of 2-10% of tax owed and 0.75% interest compound monthly. Criminal charges may apply in some cases.

What's the difference between destination-based and origin-based sales tax states?

Destination-based means the buyer's location determines the sales tax rate. Origin-based means the seller's location determines the sales tax rate.

Is the Nevada sales tax destination-based or origin-based?

Nevada is a destination-based sales tax state. Sales tax depends on where the customer receives the product.

Is Nevada a streamlined sales tax state?

Nevada is a full Streamlined Sales and Use Tax Agreement (SSUTA) member.

Sales tax nexus table in Nevada

Nevada has expansive sales tax nexus rules establishing a tax obligation for many out-of-state sellers. Sellers with any of the following nexus triggers have sales and use tax obligations in Nevada:

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Physical Nexus

Any amount of physical presence in Nevada creates a sales tax nexus. This includes but is not limited to:

• Having a physical office, retail store, warehouse, distribution center, or other place of business in Nevada
• Storing inventory or other tangible property in a fulfillment center, warehouse, or other storage facility located in Nevada
• Having employees, contractors, agents, or other representatives working or conducting business activities from within Nevada borders
• Making sales or delivering goods into Nevada using company-owned vehicles

Economic Nexus

Out-of-state sellers without physical presence in Nevada may still have a sales tax collection obligation based on their economic connections to the state. Nevada economic nexus rules state that sellers meet the sales tax threshold if they have:

• Gross revenue from Nevada sales exceeding $100,000 in the current or prior calendar year

• 200 or more separate retail sales transactions to Nevada customers in the current or prior calendar year

Once the revenue or transaction threshold is met for a calendar year, economic nexus is established, and the seller must collect, file, and remit Nevada sales tax moving forward.

Marketplace Nexus

Storing inventory in a fulfillment center in Nevada can trigger a sales tax collection responsibility for marketplace sellers. For example, sellers using Fulfillment by Amazon (FBA) services with inventory stored at Amazon warehouses across Nevada have marketplace nexus.

FAQs

Do I need a Nevada seller's permit if I’m only a wholesaler?

If you make any retail sales in Nevada, you need a seller's permit, even if you primarily do wholesale business. Wholesalers with no retail sales can obtain a resale certificate.

Do I need a Nevada seller's permit if I only sell temporarily in the state?

Yes, if you meet the sales threshold of $100,000 in gross revenue or 200+ transactions from Nevada customers in the current or prior calendar year.

Exemptions from sales tax in Nevada

Here are few sales tax exemptions in Nevada.

• Unprepared food
• Prescription medicine
• Medical devices
• Farm equipment
• Newspapers
• Digital goods delivered electronically

FAQs

Are groceries taxable in Nevada?

Most grocery food items are exempt from sales tax in Nevada. However, prepared foods, dietary supplements, candy, soft drinks, and alcohol purchases are taxable.

Is clothing taxable in Nevada?

All clothing purchases in Nevada are subject to sales tax, including shoes, accessories, children's clothing, and adult apparel.

Are digital products taxable in Nevada?

No, digitally delivered software, music, movies, ebooks, and other digital products are not taxable in Nevada.

Is software-as-a-service (SaaS) taxable in Nevada?

Software as a service is not subject to Nevada sales tax since it is delivered electronically.

Are services taxable in Nevada?

Some services necessary to sell tangible personal property may be taxable. Most stand-alone services with no associated tangible goods are not taxable.

Excise taxes in Nevada

• Alcohol - $3.60 per gallon tax on liquor
• Cigarettes - $1.80 per pack tax
• Other tobacco - 30% of wholesale price
• Marijuana - Wholesale excise tax of 15%

Remote sellers in Nevada

Remote sellers with no physical presence in Nevada still have sales tax obligations if they meet the economic nexus thresholds of $100,000 in gross revenue or 200+ transactions from Nevada customers.

Prepaid sales tax rates for fuel products in Nevada

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Collecting Sales Tax for Out-of-State Sellers

Even if you don't have a physical presence in Nevada, you likely still need to register and collect sales tax if you meet the economic nexus thresholds:

• $100,000+ in gross Nevada sales revenue in the current or prior calendar year

• 200+ separate retail sales transactions with Nevada customers in the current or prior calendar year

Once either threshold is met, you must:

1. Register for a Nevada seller's permit
2. Integrate sales tax calculation into your checkout flows
3. Collect tax from Nevada customers on taxable purchases
4. Remit the tax to Nevada on your filings

Other activities can require an out-of-state seller to collect Nevada sales tax, including:

• Storing inventory in a Nevada warehouse (ex. Fulfillment by Amazon)
• Having affiliates or related entities conducting business activities within Nevada
• Attending tradeshows and making taxable sales
• Making regular deliveries into Nevada with company vehicles

Collecting the Correct Tax Rate

Nevada has destination-based sales tax, meaning the total tax rate you collect is determined by the ship-to or delivery address. Based on the city/county, rates can range from 4.6% to 8.265%.

You'll need to integrate a solution that can accurately apply address-level rates at checkout. Otherwise, you risk collecting the wrong amounts.

Managing Exemption Certificates

Some customers and entities may be exempt from paying sales tax in certain situations. Handling exemption certificates properly is critical for compliance:

• Obtain a completed, signed Certificate of Exemption form from qualified exempt customers
• Verify certificates are valid and current
• Retain certificates for at least 4 years in your records
• Charge tax until you have a certificate on file

Common exemption certificate types in Nevada include Resale Certificates, Government Entity Exemptions, and more.

Should You Collect Tax on Nevada Shipping Charges?

You do not need to collect sales tax in Nevada on separately stated transportation, shipping, postage, or delivery charges. Handling fees are still taxable, though.

Ensure your invoices separate non-taxable shipping, freight, or delivery fees from other charges. This excludes them from the sales tax base.

Filing & Paying Nevada Sales Tax

Look at the essential requirements and dates for filing Nevada sales tax returns and remittances.

Nevada Sales Tax Return Filing Frequencies & Due Dates

The Nevada Department of Taxation assigns filing frequencies to each business based on estimated taxable transaction volume:

Monthly

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Quarterly

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Annual

File by January 31 for the prior calendar year. 

Penalties for Late Filing / Remittance

Nevada charges the following penalties on late sales tax filings or payments:

• 1-10 days late: 2% penalty
• 11-15 days late: 4% penalty
• 16-30 days late: 6% penalty
• Over 30 days late: 10% penalty + 0.75% monthly interest

FAQs

What are the Nevada sales tax due dates?

The due dates for filing Nevada sales tax returns vary by assigned filing frequency. For quarterly filers, the due dates are:

• Q1 (Jan-March): April 30
• Q2 (April-June): July 31
• Q3 (July-Sept): October 31
• Q4 (Oct-Dec): January 31

I didn’t collect any Nevada sales tax during this period. Do I still need to file a return?

Yes, you still need to file a Nevada sales tax return even if you didn't collect any sales tax. This is required to comply with the state's rules.

Can I amend a Nevada sales tax return?

You can file an amended Nevada return to correct errors or omissions from prior periods. You may need to pay additional tax owed plus applicable interest and penalties.

What is the penalty for filing and paying Nevada sales tax late?

Nevada charges up to a 10% penalty on late sales tax payments or filings. Interest accrues monthly at 0.75% as well. The total penalties plus interest cannot exceed 20% of taxes due.

Nevada Sales Tax Audits & Appeals

If your business is selected for a Nevada sales and use tax audit, here is what you can expect:

The Audit Process

1. The auditor contacts you to schedule the audit kickoff and request records
2. During the audit, the auditor thoroughly reviews your sales records, tax returns, exemption certificates, and more
3. The auditor issues their preliminary findings and discusses them with you
4. You have a chance to refute any disputed findings before the final determination
5. After the audit closes, you will receive the final determination and bill if you owe taxes

What to Expect During the Audit

The auditor will request access to your Nevada tax returns, sales and purchase invoices, bank statements, reseller exemption forms, and other transactional records. You may need to explain your recordkeeping processes, business operations, how taxability decisions are made, and more.

Ensure you retain organized records and are prepared to validate any untaxed sales or claimed exemptions. Auditors check that everything is adequately supported.

Appealing Audit Findings

You can file an appeal if you disagree with the auditor's final audit determination. Refuting unfavorable findings in writing can help reduce or eliminate assessed tax obligations. Grounds for appealing may include:

• Errors in the auditor's understanding of transactions
• Misapplication of Nevada sales tax statutes and rules
• Exemption certificates that were excluded
• Untaxed sales that were permissible

Review the auditor's conclusions against your records before deciding whether to appeal.

Registration Requirements for Online Sellers in Nevada

If you are an online seller, you may be required to register for sales tax in Nevada if you meet the economic nexus thresholds:

• You have over $100,000 in gross revenue from Nevada sales in the current or prior calendar year
• You conduct 200 or more separate retail sales transactions with Nevada customers in the current or previous calendar year.
• You store inventory in Nevada warehouses that are sold online, creating a physical presence.

Cost of Nevada Sales Tax Registration

The fee to register for a Nevada seller's permit is $15 per business location. Certain security deposits may also be required depending on filing frequency.

Nevada Sales Tax Agencies

To register or file Nevada sales tax, contact:

• Nevada Department of Taxation
• Phone: 1-866-962-3707
• Website: https://tax.nv.gov

There you have it—a comprehensive guide on Nevada's sales tax regime. Need help filing taxes for your ecommerce store? Get a demo with Numeral now.