Nevada Sales and Use Tax Guide: Key Insights for 2025-26

Sales and Use Tax Basics in Nevada

Sales Tax

In Nevada, sales tax applies to the sale, transfer, barter, licensing, lease, rental, use, or other consumption of tangible personal property, that is, tangible goods. In addition to the sales of goods, services provided within Nevada are also subject to sales tax, particularly services that are necessary for completing the sale of tangible goods.

Use Tax

In Nevada, the use tax is commonly referred to as the consumer use tax, which applies to the use, storage, or consumption of goods within the state when sales tax has not been paid. The typical situation in which the use tax applies is the purchase of tangible goods from out-of-state vendors that are brought or delivered into the state for use.

Nevada Sales and Use Tax Rates

The statewide sales and use tax rate is 6.85%. In addition to the statewide sales and use tax, local jurisdictions may also impose additional taxes. For example, the total applicable sales and use tax rate in Carson City is 7.60%, in Clark County it is 8.375%, and in White Pine County it is 7.725%.

To determine the exact applicable sales and use tax rate, the taxable person must identify the location of their customers and refer to the state sales tax map, provided by the Nevada Department of Taxation, to find the correct rate.

Tax-Exempt Transactions

Non-profit organizations, such as those established for religious, charitable, or educational purposes, are exempt from sales and use tax. However, these organizations are not automatically exempt, and they must apply for and receive approval from the Department of Taxation. Organizations that receive the approval must renew their status every five years.

In contrast, state and local government agencies, as well as federal government agencies, are automatically exempt, and they do not need to apply for approval from the Department of Taxation.

Transactions relating to the unprepared food, farm machinery and equipment, newspapers, and finance charges on credit sales are non-taxable. Additionally, installation, repair, or reconditioning services are considered tax-exempt if they are listed separately on the invoice. Under the same conditions, transportation, shipping, and postage charges are also exempt from taxation.

Nexus Rules in Nevada

For taxable persons to become liable for sales and use tax, they must establish a nexus in the state of Nevada. There are several ways taxable persons can establish a nexus, including being physically present in the state or exceeding the sales and use registration threshold defined for out-of-state or remote sellers and marketplace facilitators.

Additionally, taxable persons without physical presence but being part of a controlled group of entities with certain affiliates having physical presence in this state may be required to collect and remit sales and use tax.

Physical Nexus

Establishing a physical presence in Nevada means being physically present in the state. Such a presence can be established by having a store, showroom, or distribution center on-site, or by owning or leasing a physical property, such as a warehouse or storage facility. Furthermore, keeping inventory or having employees in the state is considered sufficient for establishing a physical nexus.

Economic Nexus

Taxable persons without physical nexus in Nevada, commonly referred to as remote sellers, may be liable for sales tax if they have more than USD 100,000 in retail sales into Nevada in the previous or current calendar year, or if they have 200 or more separate retail transactions for delivery into the state.

Once they exceed either of these two thresholds, remote sellers must register for, collect, and remit sales tax on all taxable retail sales made for delivery into Nevada.

Marketplace Nexus

Under the 2019 Marketplace Facilitator rules, marketplace operators who facilitate retail sales or make direct-to-consumer sales must register for sales tax purposes if their total sales exceed USD 100,000 or if they have more than 200 separate transactions in Nevada during the previous or current calendar year.

Click-Through and Affiliate Nexus

In 2015, Nevada expanded the definition of nexus to include remote sellers who are part of a controlled group of businesses, where one of the group’s members has a physical presence in the state and engages in activities that support or relate to the retailer’s ability to sell to Nevada customers.

Activities such as selling similar products under a related name, operating physical locations that help fulfill the retailer’s orders, using similar branding, performing services like delivery or installation for the retailer’s customers, and offering in-state pickup of the retailer’s goods are all examples of activities that establish affiliate nexus.

Regarding the click-through nexus rules, out-of-state retailers must collect and remit sales and use tax if they have agreements with Nevada residents who receive compensation for directing potential customers to the retailer’s site, such as through web links. For this requirement to arise, the retailer must earn more than USD 10,000 in sales from these referrals over the previous four quarters.

Taxable Goods and Services in Nevada

The Nevada sales and use tax regulations define tangible goods as those that can be seen, weighed, measured, felt, or touched, or which are in any other manner perceptible to the senses. Generally, sales of tangible goods are subject to sales and use tax, unless they are specifically exempt from taxation. These include most goods, clothing, and merchandise, as well as leasing and renting tangible goods.

In contrast, services are generally non-taxable, unless listed as taxable, such as services necessary for completing the sale of tangible goods, and services that cannot be separately listed on the invoice.

Bundled Transactions and the True Object Test

Bundled transactions are transactions that include the retail sale of two or more distinct and identifiable products sold together for one nonitemized price, excluding real property and services to real property. Under the Nevada rules, sales and use tax applies to the full amount received by a seller for a bundled transaction, except in some cases.

These exemptions include transactions where prices vary based on buyer selection, those involving services where tangible goods are incidental, or where taxable items account for 10% or less of the total cost. If a transaction includes both taxable and non-taxable goods, they may also be excluded if the taxable portion is 50% or less of the total price.

E-Commerce Framework

The South Dakota v. Wayfair reshaped the outlook of the rules and regulations applicable to the e-commerce sector. Following this ruling, Nevada introduced a set of rules for remote sellers. Remote sellers, meaning those who do not have a physical presence in the state or other legal requirements to register and collect applicable sales and use taxes, must comply with sales and use tax rules once they exceed the threshold.

In this case, the economic nexus threshold is relevant. Therefore, if remote sellers have more than USD 100,000 of retail sales in Nevada or 200 or more separate retail transactions for delivery into the state, they must register for, collect, and remit taxes.

However, in practice, remote sellers may offer and sell their goods and services through their website or similar channels, as well as utilize online marketplaces to make retail sales. The second type of sellers are known as marketplace sellers.

Marketplace Rules

Marketplace sellers are also considered remote sellers if they make direct sales into Nevada in addition to those made through a marketplace. In a situation where the marketplace sellers make direct sales and through a marketplace facilitator, and these combined sales meet Nevada’s threshold, they must register for sales tax purposes for direct sales into Nevada.

However, if a marketplace seller makes sales only through a marketplace facilitator registered for sales tax purposes in Nevada, the seller is not required to register with the Department of Taxation. In that case, the marketplace facilitator is responsible for collecting and remitting sales tax.

Digital Goods and Services

Custom computer software and custom programming services are considered professional services, therefore, sales tax does not apply to their sales, leases, rentals, or licenses, regardless of the format in which the software is delivered. Moreover, any further upgrades, updates, or support services for custom software are also tax-exempt. On the contrary, sales of prewritten or off-the-shelf software are treated the same as the sale of tangible goods, unless they are delivered electronically. 

Therefore, any product delivered electronically, such as software, e-magazine, or even software as a service (SaaS), is not subject to sales and use tax. However, if software is delivered on a USB drive, such a transaction is treated as a taxable sale.

Digital Marketplace

A digital or online marketplace, such as an online store, catalog, website, or dedicated sales software application, that connects marketplace sellers and buyers falls under the definition of a marketplace. To fall under the scope of marketplace facilitator rules, these marketplaces must either directly or indirectly enable the retail sale of tangible goods.

This can be achieved by providing an infrastructure for listing or advertising products, facilitating communication between buyers and sellers, owning or operating infrastructure or software used for sales, setting prices, providing fulfillment or customer service, handling returns, or identifying the sales as their own.

Furthermore, handling payments, providing payment processing, collecting fees, transferring payments to sellers, or offering virtual currency for purchases qualify a marketplace as a marketplace facilitator.

Notably, marketplaces that only provide internet advertising services without participating in the sales process or handling transactions, as well as those that facilitate travel or car rental services for a fee but only for activities related to booking or arranging the lease or rental of passenger vehicles, are excluded from the scope of marketplace facilitator rules.

Digital Platform Operator

Online marketplaces, such as Amazon, and food delivery services, like Uber Eats, have been subject to marketplace facilitator rules since 2019. Suppose these marketplaces make direct sales to customers or facilitate sales of marketplace sellers, and exceed the USD 100,000 or 200 or more separate transaction threshold. In that case, they must register for sales tax in Nevada.

Marketplace facilitators must file one return for their direct sales and a separate tax return for facilitated sales on behalf of marketplace sellers. Additionally, registered marketplace facilitators should provide a certificate to marketplace sellers confirming that they are liable for collecting and remitting sales tax.

In cases where the marketplace facilitator is below the threshold and not registered for sales tax, it must inform marketplace sellers about the situation so that they can individually register if they meet or exceed the threshold.

Filing and Payment Requirements in Nevada

Sales and use tax filing and payment frequency depend on the amount of the taxable sales. Therefore, tax returns must be filed monthly if taxable sales exceed USD 10,000 per month, and quarterly if they are less than USD 10,000. In cases where the taxable sales are less than USD 1,500 in the previous year, an annual tax return may be filed.

Penalties for Non-Compliance with Sales and Use Tax Requirements

Nevada imposes a penalty for late filing and payment of sales and use tax, starting at 2% for returns that are late 1 to 10 days. The penalty increases by 2% for each subsequent five-day period, up to a maximum of 10% of the due taxes. Additionally, an interest rate of 0.75% per month, or fraction thereof, applies to any unpaid taxes.