Nevada — Corporate Income / Franchise Tax

Nevada does not impose a state corporate income tax or franchise tax on business entities.

Source: Nevada Secretary of State — Why Incorporate in Nevada?

This distinguishes Nevada from most U.S. states, which levy a corporate income tax on net income or a franchise tax measured by capital or other bases. Corporations, limited liability companies, partnerships, and other business entities doing business in Nevada have no state-level income tax filing obligation solely by reason of organizing in Nevada or conducting business in the state.

Source: Nevada Secretary of State — Why Incorporate in Nevada?

Nevada's Constitution and statutes do not authorize a corporate income tax. Instead, Nevada raises revenue from businesses primarily through the Commerce Tax (a gross receipts tax imposed on business entities with Nevada gross revenue exceeding $4 million annually), the Modified Business Tax (a payroll tax), sales and use taxes, and various licensing fees.

Source: NRS Chapter 363C — Commerce Tax

Businesses operating in Nevada remain subject to federal corporate income tax under the Internal Revenue Code. The absence of Nevada corporate income tax does not affect federal filing obligations.

Practitioner note: Because Nevada imposes no corporate income tax, the sections that follow in this guide address the Commerce Tax under NRS Chapter 363C, which is Nevada's principal business tax on larger entities. The Commerce Tax is a gross receipts tax, not an income tax, and is covered in this guide because it is the primary state-level tax on corporate activity in Nevada.

Nevada imposes a Commerce Tax on each business entity whose Nevada gross revenue in a taxable year exceeds $4,000,000. The tax is imposed for the privilege of engaging in a business in the state. Business entities whose Nevada gross revenue for a taxable year is $4,000,000 or less are exempt from the tax, and the Nevada Department of Taxation may not require them to file a Commerce Tax return for that year.

The tax is calculated by subtracting $4,000,000 from the entity's Nevada gross revenue for the taxable year and multiplying the result by the applicable rate for the business category in which the entity is primarily engaged.

Source: NRS 363C.200

For Commerce Tax purposes, a business entity engaged in more than one business category is deemed to be primarily engaged in the business category in which the highest percentage of its Nevada gross revenue is generated. This determination controls which industry-specific tax rate applies under NRS 363C.310 through 363C.560. Business entities select their NAICS code category on the initial Commerce Tax return and may request a category change through the Department of Taxation.

Source: NRS 363C.097

Nevada Commerce Tax rates vary by NAICS business category, ranging from 0.051 percent to 0.200 percent. NRS 363C.310 through 363C.560 each prescribe a rate for a specific NAICS category. The tax is calculated by subtracting $4,000,000 from the business entity's Nevada gross revenue for the taxable year and multiplying the remainder by the rate for the category in which the entity is primarily engaged. Examples include 0.111 percent for retail trade (NRS 363C.370), 0.128 percent for warehousing and storage (NRS 363C.420), and 0.136 percent for utilities and telecommunications (NRS 363C.330).

Source: NRS 363C.300–363C.560

Nevada gross revenue is the tax base for the Commerce Tax and determines both whether a business entity exceeds the $4,000,000 threshold and the amount of tax owed. Under NRS 363C.055, "Nevada gross revenue" means the gross revenue of a business entity from engaging in a business in Nevada, as adjusted pursuant to NRS 363C.210 (deductions) and sitused to Nevada pursuant to NRS 363C.220 (sourcing rules).

Gross revenue starting point

The calculation begins with "gross revenue" as defined in NRS 363C.045(1): the total amount realized by a business entity from engaging in a business in Nevada, without deduction for the cost of goods sold or other expenses incurred, that contributes to the production of gross income. This includes the fair market value of any property and any services received, and any debt transferred or forgiven as consideration. Gross revenue encompasses amounts realized from the sale, exchange, or disposition of the entity's property; the performance of services; and another person's possession of the entity's property or capital.

Exclusions from gross revenue

NRS 363C.045(3) lists specific amounts excluded from gross revenue, including amounts realized from tax-deferred reorganization transactions under Internal Revenue Code sections 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, or 1033; amounts indirectly realized from a reduction of an expense or deduction; the value of property or services donated to a qualifying 501(c)(3) organization if the donation is deductible under IRC § 170(c); and amounts that are not considered revenue under generally accepted accounting principles.

Statutory deductions

After determining gross revenue, business entities apply deductions listed in NRS 363C.210(1). These include gross revenue that Nevada is constitutionally prohibited from taxing; gross revenue attributable to dividends and interest on federal, Nevada state, or Nevada municipal bonds; gross receipts already used to calculate gaming license fees under NRS 463.370; gross proceeds used to determine net proceeds taxes on minerals under NRS 362.100 to 362.240; amounts subject to other Nevada industry-specific taxes (cigarette excise tax under NRS 369, insurance premium taxes under NRS 680B, etc.); payments to health care providers from Medicaid, Medicare, CHIP, TRICARE, and workers' compensation; and specific amounts for client companies under employee leasing arrangements. NRS 363C.210(1)(aa) also permits a deduction for a business entity's share of net income from a passive entity, but only to the extent that net income was generated by the gross revenue of another business entity (to prevent double taxation).

Situsing to Nevada

The adjusted gross revenue is then sitused to Nevada under NRS 363C.220. The situsing rules apply a destination-based sourcing framework for most transactions:

• Real property: Gross rents, royalties, and sales proceeds are sitused to Nevada if the real property is located in Nevada.
• Tangible personal property: Sales revenue is sitused to Nevada if the property is delivered or shipped to a buyer in Nevada, regardless of F.O.B. point or other conditions of sale. Gross rents and royalties from tangible personal property are sitused to Nevada to the extent the property is located or used in Nevada.
• Transportation services: Gross revenue is sitused to Nevada if both the origin and destination points are located in Nevada.
• Other services: Gross revenue from services not otherwise described is sitused to Nevada in the proportion that the purchaser's benefit in Nevada bears to the purchaser's benefit everywhere, with the physical location at which the purchaser ultimately uses or receives the benefit being paramount. If records do not allow the taxpayer to determine that location, the entity may use a reasonable alternative method if it is consistently and uniformly applied and supported by the taxpayer's records.

The Nevada Administrative Code (NAC Chapter 363C) contains detailed situsing regulations for specific services, including accounting, tax preparation, advertising, cable and satellite services, and many others.

Accounting method conformity

NRS 363C.110 requires that a business entity's method of accounting for gross revenue must be the same as its method of accounting for federal income tax purposes for the federal taxable year that includes the relevant calendar quarter. If the federal accounting method changes, the Commerce Tax accounting method must change accordingly.

Alternative apportionment

NRS 363C.220(2) provides that if the statutory situsing provisions do not fairly represent the extent of business conducted in Nevada, the Nevada Department of Taxation may authorize the business entity to use an alternative method of situsing gross revenue to Nevada.

Source: NRS 363C.045, NRS 363C.055, NRS 363C.110, NRS 363C.210, NRS 363C.220

Each business entity whose Nevada gross revenue in a taxable year exceeds $4,000,000 must file a Commerce Tax return and remit the full tax payment on or before the 45th day immediately following the end of that taxable year. The taxable year is the 12-month period beginning on July 1 and ending on June 30 of the following year. Under this framework, the statutory filing and payment deadline for the taxable year July 1, 2025 – June 30, 2026 is August 14, 2026 (the 45th day after June 30, 2026).

Return and payment due together

NRS 363C.200(4) requires a business entity to remit the full amount of Commerce Tax due with the return. Unlike income tax regimes that permit filing a return before full payment, the Commerce Tax statute imposes a single deadline for both the return and payment, and both must be filed with the Nevada Department of Taxation by the 45th day after the taxable year ends.

Extension of time to pay

The Department of Taxation may, upon written application made before the original payment due date, extend the time to pay the Commerce Tax by not more than 30 days for good cause. If such an extension is granted and the tax is paid during the extension period, no penalty or late charge is imposed, but the business entity must pay interest at the rate of 0.75 percent per month from the original due date until the date of payment, unless otherwise provided in NRS 360.232 or 360.320. The extension authority under NRS 363C.200(5) applies only to the time to pay, not the time to file—the statute does not provide for an extension of the return filing deadline itself.

Filing requirement for entities below the threshold

Business entities engaging in business in Nevada whose Nevada gross revenue for a taxable year is less than $4,000,000 are exempt from Commerce Tax under NRS 363C.200(1), and the Department may not require them to file a Commerce Tax return for that year. NAC 363C.220 previously imposed a simplified-form filing requirement on sub-threshold entities, but that regulation has been repealed. As of 2026, only business entities exceeding the $4,000,000 threshold must file.

Weekend and holiday rule

The Nevada Department of Taxation's Commerce Tax Return Instructions state that if the due date falls on a weekend, the Commerce Tax is due the next business day. This is consistent with general Nevada tax-administration practice.

Penalties and interest for late filing or payment

Failure to file the return or pay the tax on or before the due date triggers penalties under NAC 360.395 based on the number of days late, up to a maximum penalty of 10 percent of the tax due. Interest accrues at the rate of 0.75 percent per month on unpaid balances pursuant to NRS 360.417, in addition to penalties.

Effective date and applicability

The Commerce Tax was enacted by the Nevada Legislature in 2015 (Senate Bill 483, 78th Session) and became effective for taxable years beginning on or after July 1, 2015. The filing and payment deadline provisions in NRS 363C.200 have remained substantively unchanged since the statute's enactment.

Source: NRS 363C.200, NRS 363C.080, Nevada Department of Taxation Commerce Tax Return Instructions (June 2023)