nv-commerce-tax

Nevada Commerce Tax Skill

Scope. This skill covers the Nevada Commerce Tax (NRS Chapter 363C), a gross receipts tax imposed on business entities with Nevada gross revenue exceeding $4,000,000 in a taxable year. Rates range from 0.051% to 0.331% depending on the business category (NAICS code). The taxable year runs July 1 – June 30.

Quality tier. Q3 — AI-drafted, not independently verified. All outputs must be reviewed by a qualified tax professional before filing.

Section 1: Metadata

Metadata table

Field	Value
Tax type	Gross receipts tax (Commerce Tax)
Jurisdiction	Nevada (US-NV)
Taxable year	July 1 – June 30 (fiscal year)
Primary form	Commerce Tax Return
Tax structure	Industry-specific flat rates applied to gross revenue above $4M threshold
Rate range	0.051% – 0.331% (26 business categories)
Filing deadline	August 14 (45 days after fiscal year-end)
Revenue threshold	$4,000,000 NV gross revenue
Tax authority	Nevada Department of Taxation
Website	https://tax.nv.gov
Statute	NRS Chapter 363C

Sources:

• NRS 363C.100–363C.560 (Commerce Tax statutory provisions)
• Nevada Department of Taxation, Commerce Tax Return Instructions: https://tax.nv.gov
• Tax Foundation, "Nevada Approves Commerce Tax" (2015 analysis)
• AB 594 (2025 session — updated to 2022 NAICS edition)

Section 2: Quick reference — rates by business category

Complete NAICS category rate table

Complete NAICS category rate table

Business category	NAICS code(s)	Tax rate
Agriculture, forestry, fishing, hunting	11	0.063%
Mining, quarrying, oil and gas extraction	21	0.051%
Utilities and telecommunications	22, 517	0.136%
Construction	23	0.083%
Manufacturing	31, 32, 33	0.091%
Wholesale trade	42	0.101%
Retail trade	44, 45	0.111%
Air transportation	481	0.058%
Rail transportation	482	0.331%
Truck transportation	484	0.202%
Other transportation	483, 485, 486, 487, 488, 491, 492	0.129%
Warehousing and storage	493	0.128%
Publishing, software and data processing	512, 513, 516, 518	0.253%
Finance and insurance	52	0.111%
Real estate and rental and leasing	53	0.250%
Professional, scientific and technical services	54	0.181%
Management of companies and enterprises	55	0.137%
Administrative and support services	561	0.154%
Waste management and remediation services	562	0.261%
Educational services	61	0.281%
Health care and social assistance	62	0.190%
Arts, entertainment and recreation	71	0.240%
Accommodation	721	0.200%
Food services and drinking places	722	0.194%
Other services	81	0.142%
Unclassified	519, 92	0.128%

Key thresholds

Key thresholds

Item	Value
Revenue threshold	$4,000,000 NV gross revenue
Filing threshold	Same — no filing required if NV gross revenue ≤ $4M
Minimum rate	0.051% (mining)
Maximum rate	0.331% (rail transportation)
Unclassified rate	0.128%

Section 3: How the Commerce Tax works

Who must pay

Any business entity engaging in business in Nevada whose Nevada gross revenue exceeds $4,000,000 in a taxable year (July 1 – June 30). This includes:

• Corporations (C-corps and S-corps)
• LLCs (including single-member LLCs)
• Partnerships
• Sole proprietors
• Business trusts

Computation

• Commerce Tax formula — Commerce Tax = (NV Gross Revenue − $4,000,000) × Industry Tax Rate

Example: A professional services firm (NAICS 54) with $6,000,000 in NV gross revenue:

• Taxable amount: $6,000,000 − $4,000,000 = $2,000,000
• Tax rate: 0.181%
• Commerce Tax: $2,000,000 × 0.00181 = $3,620

Taxable year

• Fiscal year and due date — The Commerce Tax uses a fiscal year running July 1 through June 30 — not the calendar year. The return is due by August 14 (45 days after the June 30 year-end).

Nevada gross revenue

• Nevada gross revenue definition — Nevada gross revenue means the total amount realized by a business entity from engaging in business in Nevada. It includes: - Gross receipts from sales of goods or services in NV - Rents and royalties from NV property - Other income attributable to NV business activity
• Exclusions from NV gross revenue — Exclusions from NV gross revenue: - Revenue already subject to gaming tax, insurance premium tax, or mining tax - Distributions from pass-through entities (to avoid double-counting) - Stock proceeds - Bad debts expensed on the federal return - Net income from a passive entity to the extent generated by another entity

Business category determination

• Business category determination — If a business operates in multiple NAICS categories, it is classified in the category that generates the highest percentage of its Nevada gross revenue. You cannot split revenue across multiple categories — one rate applies to the entire taxable amount. To change your NAICS code category from a prior year, you must obtain permission from the Department using the NAICS Code Category Change form.

Section 4: Self-employed / sole proprietor specific rules

When does the Commerce Tax affect sole proprietors?

Most sole proprietors will not owe Commerce Tax because their Nevada gross revenue is below $4,000,000. However, sole proprietors with high-revenue businesses (e.g., large consulting practices, real estate operations, wholesale/retail operations) may be subject to it.

Interaction with federal taxes

• Interaction with federal taxes — - Commerce Tax paid is deductible as a business expense on federal Schedule C. - The Commerce Tax is not creditable against any other Nevada tax (except a partial credit against the Modified Business Tax / payroll tax, which only applies to employers with employees). - Nevada has no state income tax, so there is no state income tax return to file.

Modified Business Tax (MBT) credit

• MBT credit rule — Businesses that pay Commerce Tax may claim a credit against the Modified Business Tax (NV's payroll tax) equal to the Commerce Tax paid, up to the amount of MBT owed. This prevents double taxation for businesses subject to both. For sole proprietors with no employees, MBT does not apply and this credit is irrelevant.

Section 5: Tier 1 rules — deterministic

Tier 1 rules table

Rule ID	Rule	Source
NV-T1-01	Commerce Tax applies to business entities with NV gross revenue > $4,000,000	NRS 363C.200
NV-T1-02	Tax = (NV gross revenue − $4,000,000) × NAICS category rate	NRS 363C.300
NV-T1-03	Taxable year is July 1 – June 30	NRS 363C.050
NV-T1-04	Return due August 14 (45 days after year-end)	NRS 363C.200
NV-T1-05	Business category = the NAICS category generating the highest % of NV revenue	NRS 363C.097
NV-T1-06	No filing required if NV gross revenue ≤ $4,000,000	NRS 363C.200
NV-T1-07	Commerce Tax paid may be credited against Modified Business Tax (payroll tax)	NRS 363C.300
NV-T1-08	Revenue from gaming, insurance premiums, and mining already taxed under other chapters is excluded	NRS 363C.300
NV-T1-09	Rates range from 0.051% (mining) to 0.331% (rail transportation)	NRS 363C.310–363C.560
NV-T1-10	Unclassified businesses taxed at 0.128%	NRS 363C.560

Section 6: Tier 2 rules — requires judgment

Tier 2 rules table

Rule ID	Situation	Guidance
NV-T2-01	Multi-category business: Business operates across multiple NAICS codes	Must classify under the single category generating the highest % of NV gross revenue. Cannot split.
NV-T2-02	Pass-through entity distributions	Distributions from other entities should be excluded from NV gross revenue to avoid double taxation. Verify the exclusion applies to each distribution type.
NV-T2-03	Revenue sourcing	Only revenue attributable to Nevada business activity is included. Multi-state businesses must determine NV-sourced revenue.
NV-T2-04	MBT credit optimization	Businesses paying both Commerce Tax and MBT should optimize the credit to minimize total NV tax burden.
NV-T2-05	Fiscal year timing	The July 1 – June 30 fiscal year does not align with most businesses' calendar year. Revenue tracking must be aligned to the Commerce Tax fiscal year.
NV-T2-06	Approaching threshold	Businesses approaching $4M in NV gross revenue should monitor carefully — once the threshold is crossed, the tax applies to all revenue above $4M.

Section 7: Supplier pattern library

Supplier pattern library table

Input needed	Where to find it
NV gross revenue	Business financial records (revenue attributable to NV activity, July 1 – June 30)
NAICS code	Business registration / prior Commerce Tax returns / census.gov NAICS lookup
Exclusions (pass-through distributions, stock proceeds, etc.)	Financial records, K-1s from partnerships
Modified Business Tax payments	NV MBT returns (for credit computation)
Prior year NAICS category	Prior year Commerce Tax return

Section 8: Form mapping

Form mapping table

Commerce Tax Return Line	Description	Source
Line 1	Business entity NAICS code category	NAICS classification
Line 2	Total Nevada gross revenue	Business financial records
Lines 3–26	Subtractions (pass-throughs, exclusions)	Financial records
Line 27	Taxable Nevada gross revenue above $4M threshold	Computed
Line 28	Tax rate per NAICS code category	Rate table
Line 29	Commerce Tax due	Line 27 × Line 28
Line 30	Penalty (if applicable)	10% of tax due if late
Line 31	Interest (if applicable)	Computed
Line 32	Total amount due	Line 29 + Line 30 + Line 31

Section 9: Refusal catalogue

Refusal catalogue table

Refusal ID	Trigger	Response
R-NV-01	Income tax question	"Nevada does not have a state income tax. The Commerce Tax is a gross receipts tax, not an income tax."
R-NV-02	Modified Business Tax computation	"The MBT (payroll tax) is a separate tax. This skill covers only the Commerce Tax."
R-NV-03	Gaming tax	"Nevada gaming taxes (NRS Chapter 463) are not covered by this skill."
R-NV-04	Mining tax	"Nevada mining taxes (Net Proceeds of Minerals) are not covered by this skill."
R-NV-05	Business license fee	"The annual $500 NV business license fee (NRS 76) is separate from the Commerce Tax and not covered here."
R-NV-06	Sales tax computation	"Nevada sales tax is covered in nv-sales-tax.md, not this skill."

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.

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