Does Nevada charge sales tax on services?
by May 2, 2026
Many businesses understand that selling tangible personal property (TPP) requires them to charge and remit sales tax. However, what about businesses that offer a service versus a physical product? What sales tax obligations do service-based businesses have in Nevada? As the country has shifted from a predominantly manufacturing economy to a service-based economy, many states have also shifted sales tax obligations to include services, ensuring they receive financial benefit from this growing economic sector. Here’s what merchants need to know about taxing services in the state of Nevada, which has a state sales tax rate of 6.85%.
Nevada sales tax law for services
Services in Nevada are generally not taxable. However, per the Nevada Department of Taxation, “Services that are necessary for completing the sale of tangible personal property are also taxable.”
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be subject to state sales tax. For an in-depth look at Nevada sales tax, TaxJar’s guide to sales tax in Nevada and the Nevada Department of Taxation have more details.
When and why businesses may need to collect sales tax on services
When service businesses sell tangible property or when the service provided is required for the sale of tangible personal property, then the business must collect sales tax. What does this mean, and how does it look in practice? The Nevada Department of Taxation provides key examples about how those who provide common services may need to charge sales tax (and why):
- Photographers – The session or service may not be taxable, but photographers must assess and pay sales tax on any tangible prints, contact sheets, or duplicates.
- Labor for fabrication – Labor needed to make a tangible good is a taxable service. However, labor charges for repairing an item (like an HVAC repair service) are not taxable.
- Beauty salons – While the service itself isn’t subject to sales tax, the products a customer may purchase would be subject to sales tax.
- Interior decorators – While the consultation service may not be taxable, any fabric, paint, or other items sold by the decorator or designer would be subject to sales tax.
How to stay compliant with sales tax when you sell services
Managing all the moving parts of sales tax can be challenging. Are accounting services taxed? What about hair care or car maintenance? They may not be taxed in your state today, but sales tax laws change all the time. TaxJar makes it easier for you to stay current with it all, especially as you scale your business across states.
If you need to charge sales tax on services, TaxJar takes all of these state laws into account and makes your job simple. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.
FAQ: Sales tax on services in Nevada
While most services are not taxable in Nevada, it’s understandable that many professionals have questions related to their specific industry and service. TaxJar always recommends that companies consult a tax professional for more in-depth and specific advice related to each state’s tax laws, however, below are some more generalized guidelines related to industry-specific services and their taxability in Nevada.
Service as a software (or SaaS) is not taxable as a service in the state of Nevada. SaaS isn’t a service needed to complete the sale of tangible property, which, per state law, is the sales tax service exception.
Since both legal services and accounting services do not support a tangible product, these services typically fall under the nontaxable guideline. However, if your legal service or accounting practice somehow serves to support a product, you may be on the hook for paying sales tax. If you have questions specific to your business, we recommend reaching out to a tax professional.
Typically, labor (for repairs) is not taxable in Nevada. However, parts used for the repairs may be subject to sales tax.
Service-based businesses that need to file a sales tax return (and remit sales tax) related to tangible goods sold or if their service is necessary for the sale of a tangible item simply need to follow the same instructions as other taxable businesses (when completing the return). However, business owners can simplify this process by allowing TaxJar to automate the filing process for them with the AutoFile service.
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