Tax Structure

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Reno - Sparks - Tahoe

Our tax climate is pro-business and critical to a corporation's profit potential. Nevada's tax structure is designed to be less burdensome to both business and its employees. Nevada has no corporate, personal, unitary, inventory or franchise taxes. Coupled with our area's reasonable property and sales tax rates, it becomes clear why Reno/Sparks/Tahoe is a desirable place to live and work.

Nevada Has No...

Property Tax

All property is assessed at 35% of appraised or market value. The state limits the rate of property tax at a total of $3.64 for each $100 of assessed valuation. Nevada has no classification system distinguishing different types of property (e.g., residential, commercial, industrial). The yearly property tax for a $100,000 home in Reno is approximately $1,173.

Washoe County...............$2.49 per $100 of assessed value.
City of Reno...................$3.35 per $100 of assessed value.
City of Sparks.................$3.20 per $100 of assessed value.

Sales and Use Tax

Washoe County has a 7% Sales and Use Tax. There is no tax on prescription drugs or food for home use. Tax does not apply to the purchase of tangible materials incorporated into the manufactured product.

Sales and Use Tax Abatement

Qualified new and expanding businesses can abate up to 5% of sales and use tax on certain capital equipment and machinery. They must be consistent with the State's plan for economic diversification and must meet other wage and benefit criteria.

Sales and Use Tax Deferral

Sales and Use Tax may be deferred, up to 60 months, interest free, on capital purchases exceeding $100,000. Application is made through the Nevada Commission on Economic Development.

Exceptions to Use Tax

No Nevada Use Tax will be assessed if tangible personal property has had substantial use (90 days or more) in another state under the same ownership. Nevada may look to intent, as well, in determining whether or not tax is due.

Business Tax

A tax is levied on businesses operating within the State of Nevada. Each business must obtain a license and pay a $25 filing fee. The business tax is $25 per employee per quarter based on the average number of full-time equivalent employees.

Business Tax Abatement

New or expanding businesses may qualify for a partial business tax exemption. In order to be eligible in the Reno/Sparks/Tahoe area, the business must invest $I million and hire at least 75 full-time employees within the first year. The business must also be consistent with the Commission on Economic Development's plan for economic diversification.

Unemployment Compensation Tax

Employers pay between 0.3 - 5.4% of the first $16,400 wages paid to an employee during a calendar year. All new businesses have a rate of 3.0% for 14 to 17 quarters until their experience rating is established.

Workers' Compensation Insurance

Except for self-insured employers, workers' compensation insurance must be purchased from the State Industrial Insurance System (SIIS). Rates are determined by the loss experience of all employees within the classification code in Nevada. SIIS will consider a company's previous experience modification factor when assigning rates. Premiums are collected based on each $100 of payroll, to a maximum of $36,000.

Nevada's Freeport Law

All inventories held for resale within or outside the borders of the state are exempt from taxation. This includes personal property held for resale by a merchant or manufacturer and all raw materials, components or supplies to be consumed in the manufacturing process.

Corporate Fees