Nevada State Income Tax Withholding
Last Updated: January 2026
Overview
Nevada does not impose a state income tax on individuals. This prohibition has been part of the Nevada Constitution since 1990, providing long-term certainty for employers and employees.
Tax Status
| Category | Status |
|---|---|
| State Income Tax | None |
| Constitutional Ban | Yes (since 1990) |
| Withholding Required | No |
No Withholding Required
Employers with employees working in Nevada:
- Do not withhold Nevada state income tax
- Do not need to file Nevada income tax withholding returns
- Do not need to register for Nevada income tax withholding
Special Considerations
Other Nevada Taxes
While Nevada has no state income tax, employers should be aware of other taxes:
Modified Business Tax (MBT):
- Applies to employers based on wages paid
- Financial institutions: 2% of wages over $62,500 quarterly
- Mining: 2% of wages over $62,500 quarterly
- Other businesses: 1.378% of wages over $62,500 quarterly
Commerce Tax:
- Applies to businesses with Nevada gross revenue exceeding $4 million
- Rates vary by industry category
- Not an income tax or withheld from employees
Multi-State Employees
For employees who work in both Nevada and an income tax state:
- Withhold taxes only for the income tax state
- Allocate wages based on work location
- No Nevada withholding regardless of allocation
Resident Employees Working Out of State
Nevada residents working in states with income tax may owe tax to those states. Nevada provides no reciprocal agreements since it has no income tax to reciprocate.
W-2 Reporting
Even though no state income tax is withheld:
- Report Nevada wages in Box 16 (State wages) if applicable for tracking purposes
- Leave Box 17 (State income tax) blank or zero
- Use NV as the state abbreviation in Box 15