Key figures
No state 1099s
Nevada has no individual income tax, so there are no state 1099 filings and no withholding on payments to contractors, resident or not. Accounts payable in Nevada is the federal process plus use tax.
Use tax
Nevada’s sales and use tax reaches tangible personal property. When a Nevada company buys laptops, monitors or furniture from a seller that doesn’t collect Nevada tax, it owes use tax at the rate where the goods are used — 8.375% in Clark County, for example — reported on its sales and use tax return or a consumer use tax return.
Software delivered as a service is not tangible personal property, so most SaaS subscriptions carry no Nevada use tax.
Contractors
For unemployment insurance, ESD decides whether a worker is an employee under Nevada’s own test, and a misclassified worker brings unpaid ESD contributions and MBT with them. The Labor Commissioner applies its own analysis for wage claims.
The federal baseline
This page covers what Nevada adds. The federal rules underneath it apply here too.
Common questions
Do we owe use tax on purchases?
On equipment and other tangible goods bought from sellers that didn’t charge Nevada tax, yes, at the rate where the goods are used. SaaS and other services aren’t on Nevada’s taxable list, so subscriptions usually don’t carry use tax.
Does Nevada want our 1099s?
No. With no individual income tax, Nevada has no state copy of the 1099-NEC and no withholding on contractors. Federal 1099 rules are the whole job.
Payables next door
- CACalifornia payablesCalifornia classifies workers under the ABC test, wants contractors reported to EDD on Form DE 542, and requires 7% withholding on California-source payments to nonresidents over $1,500.
- OROregon payablesOregon has no sales or use tax, but every 1099 for an Oregon recipient is filed directly with DOR through iWire, and individual contractors are reported as new hires within 20 days.
- IDIdaho payablesIdaho requires a copy of every 1099-NEC for services performed in Idaho by the end of February, and charges 6% use tax on untaxed goods but not on SaaS or downloaded software.
- UTUtah payablesUtah wants 1099s that show Utah withholding by Jan 31, has no contractor withholding, and charges use tax on software, SaaS included, used in Utah.
- AZArizona payablesArizona collects 1099s that show Arizona withholding with the A1-R by Jan 31, offers a statutory contractor declaration, and charges use tax on untaxed SaaS.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
More of the Nevada guide
- AccountingAccounting and state tax in NevadaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in NevadaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayrollPayroll taxes and employer rules in NevadaWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in NevadaRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in NevadaCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.