Nevada Commerce Tax Explained: The $4 Million Threshold
Last verified: November 5, 2026
Most new Nevada businesses never pay the Commerce Tax. It starts only when your Nevada gross revenue passes $4,000,000 in a July 1 to June 30 year, and even then it is charged only on the revenue above $4,000,000, at an industry rate between 0.051% and 0.331%. This guide covers who owes it, how the rate is chosen, how to work out the bill and when the return is due.
It is written for owners who are growing toward that line and for owners of larger Nevada businesses who want to check what they owe. If you have not formed your company yet, start with the Nevada LLC guide. For the full list of state taxes, see Nevada business taxes explained for new owners.
What the Commerce Tax Is
The Commerce Tax is a gross receipts tax. The Department of Taxation describes it as a tax on the privilege of engaging in business in Nevada, and the statute imposes it on each business entity whose Nevada gross revenue in a taxable year exceeds $4,000,000 (NRS 363C.200). It is not an income tax: expenses, cost of goods sold and wages are not subtracted. Nevada has no personal or corporate income tax, so this tax and the Modified Business Tax are the state's main levies on business size.
Two details matter more than anything else on this page. The taxable year runs July 1 to June 30, not January to December (NRS 363C.080). And the $4,000,000 is a deduction, not a cliff: the tax is the revenue above $4,000,000 times your industry rate (NRS 363C.300). A business with $4,000,001 of Nevada revenue owes a few cents.
Who Pays and Who Does Not
The tax applies to corporations, partnerships, LLCs, joint ventures, professional associations, holding companies and sole proprietors (NRS 363C.020). A natural person counts only if they are in business and file Schedule C, Schedule E or Schedule F with their federal return. That means a 1099 contractor or a landlord with a rental property is a business entity for this tax, because rent is not treated as passive income (Department of Taxation: Commerce Tax FAQs).
Entities the statute excludes include:
- Governmental entities
- Nonprofits that qualify under section 501(c) of the Internal Revenue Code
- Entities organized under NRS chapter 82 or 84
- Credit unions
- Passive entities, REITs and REMICs, as defined in the statute
- Entities that only own and manage intangible investments, and people who only exhibit at a trade show or convention
- Businesses extracting gold or silver
Your entity type does not decide anything. A Nevada LLC, a Nevada corporation and a Wyoming company doing business here are all tested the same way. Two quirks catch owners out. Each entity files its own return, so a group with a consolidated federal return cannot file one consolidated Commerce Tax return. And an out-of-state company owes the tax only if it has enough connection with Nevada and more than $4,000,000 of Nevada gross revenue, which the Department's Nexus Questionnaire is built to test (Department of Taxation: Commerce Tax FAQs).
Which Revenue Counts as Nevada Gross Revenue
Nevada gross revenue is your gross revenue, minus the deductions the statute allows, placed in Nevada by the situs rules (NRS 363C.055). The situs rules are specific to what you sell (NRS 363C.220):
- Goods: Nevada revenue if the goods are delivered or shipped to a buyer in Nevada, whatever the F.O.B. point.
- Rent and royalties from real property: Nevada revenue if the property is in Nevada.
- Transportation: Nevada revenue only if both the origin and the destination are in Nevada.
- Services: Nevada revenue in the proportion of the buyer's benefit received in Nevada, with the place where the buyer uses or receives the service weighted most.
The allowed deductions are listed in NRS 363C.210. The ones small and mid-size owners meet most often are bad debts expensed for federal tax, returns and refunds to customers, pass-through revenue, interest income other than interest on credit sales, and receipts from selling certain capital assets. Health care providers can deduct Medicaid, Medicare and TRICARE payments, and a casino can deduct the gross receipts already used to compute its state gaming license fee. Cost of goods sold and payroll are not on the list.
Commerce Tax Rates by Industry
The statute sets one rate for each of 25 business categories, plus a rate for businesses that fit none of them, so there are 26 rates in all. The category follows the North American Industry Classification System (NAICS) code of what you mainly do. If you work in more than one category, the one that produces the highest share of your Nevada gross revenue controls (NRS 363C.097). Your first return names your category, and you can change it only by applying to the Department (NAICS Code Category Change Form).
| Business category | NAICS code | Rate on revenue above $4,000,000 | Statute |
|---|---|---|---|
| Agriculture, forestry, fishing and hunting | 11 | 0.063% | NRS 363C.310 |
| Mining, quarrying and oil and gas extraction | 21 | 0.051% | NRS 363C.320 |
| Utilities and telecommunications | 22 and 517 | 0.136% | NRS 363C.330 |
| Construction | 23 | 0.083% | NRS 363C.340 |
| Manufacturing | 31, 32 and 33 | 0.091% | NRS 363C.350 |
| Wholesale trade | 42 | 0.101% | NRS 363C.360 |
| Retail trade | 44 and 45 | 0.111% | NRS 363C.370 |
| Air transportation | 481 | 0.058% | NRS 363C.380 |
| Rail transportation | 482 | 0.331% | NRS 363C.390 |
| Other transportation | 483, 485, 486, 487, 488, 491 and 492 | 0.129% | NRS 363C.400 |
| Truck transportation | 484 | 0.202% | NRS 363C.410 |
| Warehousing and storage | 493 | 0.128% | NRS 363C.420 |
| Publishing, software and data processing | 512, 513, 516 and 518 | 0.253% | NRS 363C.430 |
| Finance and insurance | 52 | 0.111% | NRS 363C.440 |
| Real estate and rental and leasing | 53 | 0.250% | NRS 363C.450 |
| Professional, scientific and technical services | 54 | 0.181% | NRS 363C.460 |
| Management of companies and enterprises | 55 | 0.137% | NRS 363C.470 |
| Administrative and support services | 561 | 0.154% | NRS 363C.480 |
| Waste management and remediation services | 562 | 0.261% | NRS 363C.490 |
| Educational services | 61 | 0.281% | NRS 363C.500 |
| Health care and social assistance | 62 | 0.190% | NRS 363C.510 |
| Arts, entertainment and recreation | 71 | 0.240% | NRS 363C.520 |
| Accommodation | 721 | 0.200% | NRS 363C.530 |
| Food services and drinking places | 722 | 0.194% | NRS 363C.540 |
| Other services | 81 | 0.142% | NRS 363C.550 |
| Unclassified business entities | none | 0.128% | NRS 363C.560 |
Rates are from NRS chapter 363C as published by the Nevada Legislature. The rates are percentages of the revenue above $4,000,000, not of all revenue. Rail transportation (0.331%) is the highest rate and mining (0.051%) the lowest. Confirm your category and rate with the Department before you file, because the Legislature can change them.
How to Calculate Your Commerce Tax
Step 1: Add Up Nevada Gross Revenue for July 1 to June 30
Use the same accounting method you use for your federal return (NRS 363C.140). Then apply the deductions and situs rules above.
Step 2: Subtract $4,000,000
If the result is zero or less, you owe nothing and the Department does not require a return (NRS 363C.200).
Step 3: Multiply by Your Category Rate
Multiply what is left by the rate for your business category in the table.
Step 4: Work Out the Credit if You Have Payroll
Half of the Commerce Tax you pay can be taken as a credit against your Modified Business Tax, covered in the next section.
Two worked examples, using the rates above:
- Retail store with $5,000,000 of Nevada revenue: $5,000,000 minus $4,000,000 is $1,000,000, and $1,000,000 times 0.111% is $1,110.
- Engineering firm with $12,000,000 of Nevada revenue: $12,000,000 minus $4,000,000 is $8,000,000, and $8,000,000 times 0.181% is $14,480.
The Credit Against the Modified Business Tax
A business that pays both taxes can apply 50% of the Commerce Tax it paid as a nonrefundable credit against its Modified Business Tax (MBT), the payroll tax. The credit can be used in any of the four calendar quarters that follow the June 30 year end, and it expires after that. The MBT return has a line for it (Department of Taxation: Commerce Tax FAQs, MBT return for general businesses).
Reasoning from those rules, the credit helps only as far as you have MBT to offset. In the engineering example, a $7,240 credit is worth $7,240 only if the firm's MBT for those four quarters is at least that much. A capital-heavy business with little payroll can find the credit mostly unused. Compare it with your payroll before you treat the Commerce Tax as half-price. Our Modified Business Tax guide explains the payroll side.
Filing, Paying and Deadlines
The return is due 45 days after the taxable year ends on June 30, which is usually August 14. If that date falls on a weekend or holiday, it moves to the next business day. The Department lists August 14, 2026 as the due date for the 2025-2026 year. For the year ending June 30, 2027, August 14, 2027 is a Saturday, so the Department's weekend rule points to Monday, August 16, 2027 (our own date calculation, so confirm it on the Department's Commerce Tax page).
- File online: through My Nevada Tax. Signing up for My Nevada Tax is separate from Commerce Tax registration.
- File by mail: use the Commerce Tax return form and send it with payment to the Nevada Department of Taxation, Attn: Commerce Tax Remittance, 3850 Arrowhead Drive, Carson City, NV 89706.
- Register: a business over the threshold registers with the Department, starting from the Nexus Questionnaire. Exempt entities do not have to register.
- Pay: payments of $10,000 or more in aggregate must be made electronically. Estimated payments during the year are not required.
- Extension: for good cause the Department can extend the time to file and pay by up to 30 days. Apply before the due date on the 30-day extension form. Interest of 0.75% a month runs from the original due date (NRS 363C.200).
- Closing down: a business that closes must file a final return to close its Commerce Tax account.
The Department's Commerce Tax page hosts the return, extension, exempt-status and category-change forms. If you owe tax you did not file on, the Department runs a voluntary disclosure program that can waive penalties and interest if you apply before an audit starts. Keep the records that support your revenue figures for at least 4 years (NRS 363C.110).
What the Commerce Tax Does Not Replace
Owing no Commerce Tax does not mean owing nothing to the state. Every Nevada business entity still needs a state business license, which is $200 a year for an LLC and $500 for a corporation, renewed each year (NRS chapter 76; see Nevada business license). Employers file the Modified Business Tax quarterly, and the general rate is 1.17% of quarterly wages above $50,000 (Department of Taxation: Modified Business Tax). Sales tax, local licenses and unemployment insurance are separate again. For how these fit together for an LLC, see Nevada LLC taxes.
Limits of This Guide
This guide does not tell you how to categorize a mixed business, how to situs unusual contracts or whether your group qualifies as an affiliated group for the MBT credit. Those are judgment calls for a Nevada CPA or tax attorney, and an advisory opinion from the Department gives you written advice for your facts. Rates, categories and the NAICS definitions in the statute can change, so check the current NRS and the Department's page before you file.
Frequently Asked Questions
If I have an LLC in Nevada, do I owe Commerce Tax?
Only if the LLC's Nevada gross revenue in the July 1 to June 30 year is above $4,000,000. Below that, no return is required, even if the LLC has no revenue at all.
Is the Commerce Tax charged on all of my revenue once I pass $4,000,000?
No. The first $4,000,000 is subtracted and the rate applies only to the excess.
Can I deduct my expenses before testing the $4,000,000 threshold?
No. Ordinary expenses, payroll and cost of goods sold are not deductions. Only the items listed in NRS 363C.210 reduce gross revenue.
Do sales to customers outside Nevada count?
It depends on what you sell. Goods shipped to buyers outside Nevada are not Nevada revenue. Services follow the buyer's benefit, so check the situs rules above.
Do I owe a Commerce Tax return if I am a sole proprietor?
Yes, if you file Schedule C, E or F and your Nevada gross revenue is over $4,000,000. Being exempt from the state business license does not exempt you.
Important Disclaimer
This article is informational and covers general rules for the Nevada Commerce Tax. It is not legal advice, tax advice or professional counsel. Nevada tax law has detail that can change your result, so consult a CPA or attorney licensed in Nevada, and use the Nevada Department of Taxation Commerce Tax page for current forms and rates.
Sources
- Nevada Legislature: NRS chapter 363C, Commerce Tax (sections 363C.020, 363C.055, 363C.080, 363C.097, 363C.110, 363C.140, 363C.200, 363C.210, 363C.220, 363C.300 to 363C.560), text read November 5, 2026, chapter revised April 15, 2026
- Nevada Department of Taxation: Commerce Tax (due date, forms, filing options)
- Nevada Department of Taxation: Commerce Tax FAQs (entities, registration, payment, extension, MBT credit, voluntary disclosure)
- Nevada Department of Taxation: Nexus Questionnaire, Commerce Tax return, 30-day extension form, Exempt Status Entity Form and NAICS Code Category Change Form
- Nevada Department of Taxation: Modified Business Tax and the MBT return for general businesses
- Nevada Legislature: NRS chapter 76, state business licenses (section 76.100)
- Nevada Department of Taxation: My Nevada Tax (online filing and payment)