Is the Nevada commerce tax an income tax?

No, the Nevada Commerce Tax is not an income tax. A gross receipts tax is levied against total revenue from Nevada sources, not its profit.

Here’s what sets it apart:

• It only applies to businesses with more than $4 million in gross Nevada revenue during a fiscal year.
• The tax is calculated on gross revenue — no deductions are allowed for expenses, payroll, or cost of goods sold.
• Rates vary by industry and range from 0.051% to 0.331%.
• Even if your business earns less than $4 million, you’re still required to file a Commerce Tax return (but you won’t owe any tax).
• The tax year runs from July 1 to June 30, with returns due by August 14.
• You might qualify for applying a Commerce Tax credit against Modified Business Tax liability, maybe next year after paying tax already.

So while it is a state-imposed tax on business activity, it’s not based on income, and Nevada continues to have no corporate or personal income tax. This tax structure is one reason why the state remains attractive for business formation.