Nevada’s 83rd legislative session, which began on February 3, 2025, successfully concluded sine die on June 3, 2025. Despite attempts by some legislators to vote in bills that would increase taxes, the Silver State’s reputation as a business-friendly state remains intact.
The lack of approved taxes that made it through the legislature can be attributed to a number of factors, but is likely due in part to Nevada being one of 12 states with a divided government. Governor Lombardo vetoed a record 87 bills in the 2025 session, some of which would have increased taxes. Currently, in the state of Nevada, the Republican Party controls the governor’s office and the Democratic Party controls the offices of the attorney general, secretary of state and both chambers of the state legislature.
Yet, despite the division in the current political climate that served businesses well this past legislative session, companies are by no means out of the woods and should expect many of the proposed bills for increased taxation to resurface in 2027. But, for now, businesses can breathe a little easier as “Recent updates are focused on administrative changes, compliance requirements, and system modernization rather than new taxes,” said Shellie Hughes, executive director of the Nevada Department of Taxation.
Maintaining a Reputation
Nevada’s reputation as a tax-friendly state is a selling point for retirees, high-income earners, and businesses looking to relocate. According to TaxFoundation.org, the Silver State is ranked 20th overall on the 2026 State Tax Competitiveness Index when considering factors such as corporate, individual, sales, property and unemployment insurance taxes (for more information about how Nevada compares to other states, keep an eye out for Nevada Business Magazine’s annual How Nevada Stacks Up issue released in the fall). Unlike many other states in the Union, Nevada does not impose a state corporate or personal income tax, resulting in more saved dollars annually for businesses and individuals alike.
Last year was unique for the Nevada legislature in that, in addition to having a traditional legislative session, state legislators also met for a special session. Special Sessions in Nevada are, in fact, “special” and rather than occurring every other year like Nevada’s traditional sessions, they are held only when needed and called for by the Governor or legislative leadership. 2025 marked Nevada’s 83rd legislative session and 36th Special Session. Despite attempts by some legislators to introduce and raise new taxes, both sessions concluded with minimal major tax implications for businesses.
“As the state continues to see declines in revenue from certain tax bases, we can expect to continue to see proposed legislation to expand revenues and current taxes as well as introduce new tax and revenue streams,” said Becky Dutro, president of the Nevada Taxpayers Association. “The 2025 Legislative Session saw numerous bills related to increased taxation, and although many of them did not move forward, we can expect to see them again in the 2027 Session.”
New Deadlines and New Processes
Nevada’s tax system, like those of other states, remains intrinsically complex and is influenced by political pressures and economic shifts. And although fully understanding its complexities is a task that is better left to the experts, Nevada business owners would be wise to maintain a general understanding of the Internal Revenue Service’s expectations, deadlines and processes, all of which were addressed in Nevada’s 2025 legislative session.
“Recent legislative activity has focused on improving processes and updating tax structures,” said Hughes. “Assembly Bill 594 (2025) officially moves the sales tax filing deadline to the 20th of each month, Assembly Bill 276 (2025) updates the NAICS (North American Industry Classification System) codes used in the Commerce Tax to match the most recent federal updates, and Senate Bill 41 (2025) creates the new Cannabis Tax Permit requirement. Although these changes do not introduce significant tax increases, they do require businesses to adjust reporting timelines and internal accounting systems.”
Much of the legislation passed in the 2025 session is aimed at modernizing Nevada’s tax system by creating more streamlined processes. And while all businesses are undoubtedly in favor of making the tax filing process more efficient and user-friendly, business owners should be aware of how the new compliance requirements will impact their personal business systems and plan accordingly.
“On the operational side more broadly, the IRS continues to move toward more data-driven enforcement,” said Zachary Tompkins, CPA, stockholder with Tompkins & Peters CPAs. “What that means in practice is documentation matters more than it used to. Things like vehicle use, meals, and travel need to be clean and well-supported. For businesses that have been more informal in this area, this is the year to tighten that up.”
Enforcement is also ramping up for businesses that are growing by creating new filing thresholds.
“The two state-level taxes most businesses deal with are the Commerce Tax, which applies once Nevada-sourced gross revenue exceeds $4 million, and the Modified Business Tax on payroll,” said Tompkins. “Those have not changed much mechanically, but what we are seeing is increased enforcement and awareness. As businesses grow, they are crossing those thresholds faster than expected and sometimes do not realize they have triggered a filing requirement until after the fact.”
In addition to shortening the filing period from the end of each month to the 20th of each month, the Nevada Department of Taxation is continuing to roll out its new eServices platform – My Nevada Tax. The portal, which launched in late 2024, was designed to transition users in multiple phases from the old platform with the goal of creating a more user-friendly and streamlined experience for businesses to file returns, manage their tax accounts and make payments. Although a few phases have already been completed, the full transition to the new portal is still underway.
“The department has been modernizing its online tax system, My Nevada Tax, through a three phase transition,” said Hughes. “Phases one and two are already complete and include sales and use tax, liquor, tobacco, live entertainment, real property transfer, commerce tax, modified business tax, gold and silver excise tax, governmental services fees for short term lessors and peer-to-peer car sharing, insurance premium tax, net proceeds of minerals and centrally assessed property tax. Phase three is scheduled for implementation in December 2026. Once the transition is complete, taxpayers will be able to register, file and pay every tax type online through a single portal.”
My Nevada Tax also offers users a range of access to other essential services, some of which include filing for permits and licenses, requesting clearances and exemptions and requesting lien demands.
While the goal of shortening deadlines and requiring the use of the My Nevada Tax portal is to streamline Nevada’s complex taxation system for users, the new enforcement procedures may negatively impact smaller businesses.
“We continue to see proposed legislation and regulations related to how businesses transact with state and local agencies, including remitting payments and filing or submitting documents,” said Dutro. “The direction is to require all businesses to utilize electronic payments and online portals. This could impact smaller businesses who do not have technical resources. The Nevada Taxpayers Association monitors these closely to ensure all taxpayers are treated fairly and are able to conduct business without additional burdensome processes.”
All businesses need to understand the administrative and compliance changes enacted by the recent legislation and the impact the approved legislation will have on their business operations. New and smaller businesses in particular should partner with local tax experts to ensure they are compliant with all taxation requirements as well as made aware of the possible penalties for noncompliance, which could include late fees, interest charges and potential audits.
However, “For any business who was unaware of the due date change and incurs a late filing fee assessment, we encourage them to contact the Department of Taxation and ask for a one-time waiver of the penalty and interest charges,” said Dutro.
One Big Beautiful Bill Act
“The bigger story this year is not Nevada-specific; it is federal,” said Tompkins. “The One Big Beautiful Bill Act (OBBBA), passed in 2025, materially changed the planning landscape. The headline item is the return of 100% bonus depreciation, and more importantly, it was made permanent for qualifying property placed in service after January 19, 2025. Under prior law, that benefit was going away, with bonus depreciation scheduled to drop to 20% in 2026 and eventually phase out. Now, businesses can fully expense qualifying assets in the year they are placed in service. For our clients, especially in construction, real estate, and other capital-heavy industries, this is a big deal. It directly impacts cash flow and is already influencing how and when people are making capital investment decisions.”
There are mixed reviews about the impact of the One Big Beautiful Bill Act in nearly every business sector in Nevada. Those Nevadans who are eligible beneficiaries of government assistance programs such as Medicaid and SNAP (Supplemental Nutrition Assistance Program) are especially wary of the bill, as it introduces major changes that could result in a loss of coverage beginning in 2027. And although many are dubious of the bill and its impact on Nevadans, the “no tax on tips” provision has been largely received as positive for Nevada employees, especially given the Silver State’s hospitality- and service-based economy.
Alternatively, the implications of the provision for business owners are not as clear. “The new ‘no tax on tips’ and ‘no tax on overtime; deductions are getting a lot of attention. These are employee-level federal income tax deductions, subject to caps and income phase-outs, and they are currently set to sunset after 2028,” said Tompkins. “From an employer standpoint, they do not reduce payroll taxes. FICA and Medicare still apply to the full amount of wages. Where this really shows up is on the administrative side. Payroll systems now need to properly track and report qualified tips and the premium portion of overtime on Form W-2. Practically speaking, we are seeing this come up just as much in recruiting and retention conversations as in tax planning. It is a benefit to employees, but it does come with added complexity for employers.”
A Great Place to Live and Work
Despite a national political climate more divided than ever and a lengthy four-month state legislative session in 2025, the present and future tax climate in Nevada remains favorable to entrepreneurs. Although businesses did not walk away completely unscathed, with new filing deadlines and enforcement policies, Nevada continues to be a great place to live and work, with a hard-earned (and maintained) reputation as business-friendly.
“From a Nevada-specific standpoint, there really have not been any major structural changes [as a result of the 2025 legislative session], and that is a good thing,” said Tompkins. “Nevada continues to be one of the most tax-friendly environments in the country. There is still no state income tax on individuals or corporations, which remains a meaningful advantage for business owners operating here.”
