Nevada Sales Tax

As one of nine states without an income tax, Nevada relies on its high sales and use taxes to generate roughly a third of state revenue. However, some lawmakers worry that the state’s current sales and use tax structure is falling behind the needs of the economy. Nevada’s combined state and local sales tax rate is 6.85%, but some localities have additional rates (up to 8.15%). You can find the specific rate for your location on the Department of Taxation’s website.

If you’re a retailer that sells goods or services in Nevada, it’s critical to understand how the state’s sales tax laws work. Failure to properly collect and remit the correct amount of sales tax can result in significant late fees and penalties. In addition, uncollected sales tax can erode your bottom line over time.

Generally, Nevada sales tax is applied to retail selling tangible personal property and certain services. Some items are exempt from sales tax, including non-prepared food, farm equipment, and newspapers. In addition, the state’s Local School Support Tax (LSST) is levied on all retail sales, and the proceeds are dedicated to public education.

How to Register and Collect Sales Tax in Nevada?

When you sell taxable items or services to residents of Nevada, you must collect sales tax and remit it to the state. In addition, you must register with the Department of Taxation and keep your registration current. You can do this online or by mail.

Selling taxable goods in Nevada requires registering for a seller’s permit and collecting sales tax from your customers. Here’s a step-by-step guide to navigate the process:

1. Determine if you need a seller’s permit:

• You need a permit if you sell taxable goods within Nevada, even if you don’t have a physical presence in the state.
• Some exceptions exist, such as selling occasional garage sale items or agricultural products directly from the farm.

2. Register for a seller’s permit:

• You can register online through the Nevada Department of Taxation’s website: https://tax.nv.gov/
• The process involves providing basic business information, your Federal Tax ID number (EIN), and projected sales figures.
• There’s no fee for obtaining a permit.

Once registered, you will be assigned a filing frequency based on your estimated sales tax liability. Most sellers will file quarterly, while high-volume sellers may be asked to file monthly or annually.

Before you begin collecting sales tax, it is important to understand Nevada’s sales and use tax laws. This includes knowing if you have nexus in the state and the applicable rates and rules. The best way to do this is to work with a sales tax expert like Zamp. Our white-glove service ensures precise tax calculations and streamlines the registration and filing process, so you can focus on your business.

In addition to physical sales and use tax laws, Nevada also has economic nexus regulations that went into effect in 2018. This means that even if you do not have a physical presence in the state, you may still be obligated to collect and remit sales tax if certain economic thresholds are met.