Nevada Wage and Payroll Tax Facts
February 02, 2024
Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Nevada.
Nevada uses a substantially higher minimum wage rate than the rate required by the federal government in the Fair Labor Standards Act (FLSA). That rate varies, however, based on whether the employer offers health benefits. Also, the state doesn't allow tip credits.
When it comes to processing payroll, Nevada-based organizations must handle the following taxes in addition to those required by the federal government:
- State Unemployment Insurance (SUI)
- Modified Business Tax (MBT)
The below information was last updated July 1, 2024. It is not intended as legal or tax advice.
Nevada Minimum Wage Rates
|
Wage Type |
Nevada Rates |
Federal Rates |
|
Minimum Wage |
$12.00 |
$7.25 |
|
Tipped Minimum Wage |
N/A |
$2.13 |
|
Actual Tip Credit |
N/A |
$5.12 |
Nevada State Income Tax (SIT) Rates
Nevada is one of the few states that doesn't impose or collect a personal income tax.
Nevada State Unemployment Insurance (SUI) Rates
SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
|
Nevada SUI Tax Details |
|
|
Taxable Wage Base |
$40,600 |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
0.30% - 5.40% |
|
Rates for New Employers |
3.00% |
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
No |
|
Career Enhancement Program Rate |
0.05% |
Nevada State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Nevada, however, doesn't require employers to collect an SDI tax.
Miscellaneous Nevada Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Nevada currently has no reciprocal agreements with any other states.
This doesn't mean, however, that interstate workers living in Nevada pay double. It's federally illegal for two states to tax the same income. In most states, the employee's work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.
Paid Sick Leave (PSL) Taxes
The state of Nevada doesn’t require employers to collect PSL taxes, but it does have a program providing such leave to eligible employees:
| Nevada PSL Details | |
| Covered Employees | Full and part-time employees |
| Covered Employers | Those with at least 50 employees |
| Accrual Method(s) | 0.01923 hours of leave per 1 hour worked |
| Annual Accrual Maximum | 40 hours |
| Carryover Maximum | 40 hours |
| Probationary Period | Yes; 90 days |
| Frontloading Allowed | Yes |
| FAQs | Sick Leave |
Paid Family and Medical Leave (PFML) Taxes
The state of Nevada doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.
Modified Business Tax (MBT)
Nevada's MBT applies to all organizations that are subject to the state's Unemployment Compensation law.
Employers are categorized as either a General Business or a Financial Institution and must pay the corresponding tax rate (1.378% for General Businesses; 1.853% for Financial Institutions).
MBTs are calculated by applying the assigned rate to all the gross wages an employer paid in the last quarter, minus any paid health benefits.
Nevada Employer Registration
The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Taxation for withholding tax topics and the Department of Employment, Training, and Rehabilitation for unemployment tax topics.
|
Registration Details |
Department of Taxation |
Department of Employment, Training, and Rehabilitation |
|
Phone |
(866) 962-3707 | (775) 684-6310 |
|
Online Registration |
Nevada Business Registration | DETR New Employer Registration |
|
Registration Form |
Form TAX-F006 | Form APP-01.00 |
|
Registration Instructions |
Online and paper registration options are available. Account numbers will be issued within 1-2 days via the online process or 1-2 weeks via mail. | Online and paper registration options are available. Account numbers will be issued during the online process or within 2-3 days via mail. |
|
Employer Self-Service Login |
Nevada Tax Center Login Page | DETR Employer Login Page |
Additional Nevada Payroll Tax Resources
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.
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