Does Nevada charge sales tax on services?
by December 28, 2023
The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.
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%.
Does Nevada charge sales tax on services?
Services in Nevada are generally not taxable. However, services necessary to complete the sale of personal property are taxable, like delivery or installation charges. Per the Nevada Department of Taxation, “Services not in conjunction with a sale of tangible personal property are not subject to sales tax”.
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 has more details.
