# Nevada Contractor Taxes and Licensing Guide

Mostly no. On a job that improves real property, Nevada treats the contractor as the consumer of the materials, so you pay sales or use tax when you buy them and don't charge sales tax on the job. Nevada has no personal income tax, but bigger shops may owe the Commerce Tax and Modified Business Tax.

## Key takeaways

- You pay sales or use tax on materials for a real property job. Your bill to the customer carries no sales tax line.
- Writing "sales tax" on a construction invoice can turn the job into a retail sale taxed on the full price.
- The base state rate is 6.85%, and county rates run up to 8.375% in Clark County (effective January 1, 2020).
- No state income tax. The Commerce Tax starts above $4,000,000 in Nevada gross revenue (0.083% for construction), and the Modified Business Tax hits quarterly wages over $50,000.
- The State Contractors Board licenses A, B and C classifications with a monetary limit and a bond. Workers' comp is bought from private carriers or through self-insurance.

## Do Nevada contractors charge sales tax on labor?

Not on a normal construction job. The Department of Taxation's construction page cites NAC 372.200: "A construction contractor is considered a consumer of all tangible personal property" used on the job. The tax happens when you buy the materials. On a contract to fabricate and install, the page says "the contractor is liable for tax on the materials only." Your labor isn't taxed, because you're improving real property, not selling goods.

Here's the part that trips people up. The department's Tax Bulletin SUT 14-0002 says that when you bill for finished work, "there should be no sales tax added to the invoice." If tax shows up anyway, the department treats the deal as a retail sale and you owe that tax. The bulletin lists "Adding sales tax or any wording about sales tax" to contracts, invoices or receipts as a common mistake, because it can change your liability "from a use tax on materials cost to sales tax on the full retail price."

> **Example (illustrative numbers): a $12,000 kitchen job in Las Vegas**
>
> Say you quote $12,000. That's $4,000 in cabinets and fixtures you ordered from an out-of-state seller who didn't collect Nevada tax, plus $8,000 of labor. You owe use tax on the $4,000 at Clark County's 8.375%, which is $335. Build that into your price.
>
> The homeowner's invoice reads $12,000, with no sales tax line. Add a $1,005 "sales tax" line and the state can treat the job as a retail sale.

Fabrication is different. The construction page says "fabrication labor is taxable in a retail sale where no installation to real property is involved." If you build a product in your shop and hand it over without installing it, that's a retail sale. Our [labor vs. materials guide](https://www.brix.so/learn/sales-tax-on-labor-vs-materials) shows how other states split this.

## When do I owe use tax on materials, and can I use a resale certificate?

Buy from a Nevada supplier and you pay sales tax at the counter. Buy from an out-of-state vendor that doesn't collect Nevada tax, and the bulletin says you "must report and pay the use tax on the purchase price." If you paid another state's tax at a rate equal to or lower than the rate where the material is first used in Nevada, you pay Nevada use tax but get a credit for the other state's tax, with proof of payment. Our [use tax guide](https://www.brix.so/learn/use-tax-for-contractors) covers the basics.

- **Resale certificates.** You can only use one if you hold a Nevada sales tax permit. The bulletin says contractors may not buy materials, supplies or tools ordinarily used on construction contracts with a resale certificate unless they actually sell that property without using it first.
- **Tools and supplies.** The construction page says a contractor registered as a retailer "may NOT use a resale certificate for purchases of tools or supplies" used in the trade.
- **Furnish and install.** Whether an installed item becomes real property is decided case by case, for example whether removing it would cause damage.
- **Public works.** The construction page cites NRS 338.1423: a public works contract requires payment of the state and local taxes that would normally be due.

## Which licenses do Nevada contractors need?

The Nevada State Contractors Board (NSCB) licenses construction work under NRS chapter 624. NRS 624.215 splits contracting into general engineering, general building and specialty work. The board puts a monetary limit on every license, which NRS 624.220 defines as "the maximum contract a licensed contractor may undertake" on one site for one client. Every licensee also posts a surety bond or cash deposit that the board sets between $1,000 and $500,000 under NRS 624.270, based on your finances and the size of your operations. See our [contractor license guide](https://www.brix.so/learn/contractor-license) for how classifications and limits work in general.

**Nevada contractor licenses by trade (NRS and NAC chapter 624, checked 2026-10-19)**

| Trade | Agency | Credential | Link |
| --- | --- | --- | --- |
| General building | NSCB | Classification B (NAC 624.160), with subclassifications such as B-2 residential and small commercial; monetary limit plus bond | [NSCB](https://www.nvcontractorsboard.com/) |
| General engineering | NSCB | Classification A (NAC 624.140): roads, bridges, dams and other fixed works | [NAC 624](https://www.leg.state.nv.us/nac/nac-624.html) |
| Electrical | NSCB | Classification C-2, electrical contracting (NAC 624.200) | [NAC 624](https://www.leg.state.nv.us/nac/nac-624.html) |
| Plumbing and heating | NSCB | Classification C-1, plumbing and heating contracting (NAC 624.190) | [NAC 624](https://www.leg.state.nv.us/nac/nac-624.html) |
| HVAC and refrigeration | NSCB | Classification C-21, refrigeration and air-conditioning (NAC 624.380) | [NAC 624](https://www.leg.state.nv.us/nac/nac-624.html) |
| Roofing, painting, concrete, landscaping and more | NSCB | Specialty C classifications, such as C-15 roofing and siding or C-4 painting | [NAC 624](https://www.leg.state.nv.us/nac/nac-624.html) |

_NRS 624.035 lets counties and cities add their own requirements, so check with the building department where you work. Bond amounts and monetary limits are set per license by the board._

Small repair jobs have a narrow exemption. Under NRS 624.031, chapter 624 doesn't apply to repair or maintenance work worth "less than $1,000, including labor and materials," unless the job needs a building permit, is plumbing, electrical, refrigeration, heating or air-conditioning work, or is part of a larger project worth $500 or more. Licensed contractors and their employees can't use it either. Before you grant or renew a license, the board also requires proof of workers' comp coverage or an affidavit that you have no employees (NRS 624.256).

## Does Nevada have income tax, Commerce Tax or a payroll tax?

The Department of Taxation says "the State of Nevada does not impose a state income tax on individuals." Two business taxes still apply to bigger shops. You also owe federal income and self-employment tax, so plan quarterly payments with the [quarterly estimated tax calculator](https://www.brix.so/tools/quarterly-estimated-tax-calculator).

**Nevada business taxes that can hit contractors (checked 2026-10-19)**

| Tax | Who owes it | Rate | Filing |
| --- | --- | --- | --- |
| Commerce Tax | Businesses with Nevada gross revenue over $4,000,000 in the fiscal year (NRS 363C.200) | Construction (NAICS 23): 0.083% of Nevada gross revenue above $4,000,000 (NRS 363C.340) | Annual; the 2025–2026 return is due August 14, 2026 |
| Modified Business Tax (general business) | Employers with quarterly taxable wages over $50,000 (NRS 363B.110) | 1.17% for most general business employers, effective July 1, 2023 | Quarterly |

_MBT is figured on gross wages less employee health care benefits paid by the employer. NRS 363B.110 also allows an MBT credit of 50% of the Commerce Tax paid for the prior year, usable in the next four quarters._

Illustrative math: a builder with $5,000,000 in Nevada gross revenue would owe Commerce Tax on $1,000,000, or $830. A shop with $80,000 in taxable wages for a quarter would owe MBT on $30,000, or $351. Have a CPA check what counts in your case.

## Is workers' comp mandatory for Nevada contractors?

Yes, once you have a single employee. The Division of Industrial Relations' Workers' Compensation Section says coverage is "mandatory for an employer who has one or more employees" unless the statute excludes them, and its employer guide states that construction trades are required to have it. You can buy a policy from "a private carrier licensed in Nevada" or be certified by the Division of Insurance as a self-insured employer or a member of a self-insured association. Skip it and you face a fine of up to $15,000, premium penalties, a possible order to close, and the full cost of any injury. On a temporary job site, you must produce proof of coverage within 24 hours. See [workers' compensation](https://www.brix.so/learn/workers-compensation) for how premiums work.

## What local rates and other rules should I watch?

- **County rates.** The bulletin ties out-of-state use tax to the county where the material is first consumed. The department lists Clark at 8.375%, Washoe at 8.265% (effective April 1, 2017), White Pine at 7.725%, and Carson City, Churchill, Nye and Storey at 7.60%. Other counties sit at 7.10% or the 6.85% base.
- **Filing dates.** The department says sales and use tax returns are due on the 20th of the month. Monthly filing is mandatory if taxable sales top $10,000 a month.
- **Liens.** Nevada's lien rules are in NRS chapter 108. Read our [mechanics lien guide](https://www.brix.so/learn/mechanics-lien) before you need it.
- **Next door.** Working across a state line? See [California](https://www.brix.so/taxes/california), [Arizona](https://www.brix.so/taxes/arizona) or [Utah](https://www.brix.so/taxes/utah).

> **Not tax advice**
>
> This is a summary of Nevada's published guidance as of the date shown, not tax or legal advice. Your contracts decide how a job is taxed. Check with the Department of Taxation or NSCB, or hire a CPA who knows Nevada contractors.

BRIX sorts your material and job expenses, tracks sales tax and 1099 subs, and reminds you when quarterly estimated taxes are due, so your CPA gets clean books. Customers, invoices and payments sync to QuickBooks. BRIX doesn't file taxes or give tax advice.

- [Bookkeeping and tax help](https://www.brix.so/features/bookkeeping-taxes): Keeps expenses categorized, tracks 1099 subcontractors and sales tax, and reminds you of quarterly estimated tax dates. BRIX does not file taxes or give tax advice.
- [QuickBooks sync](https://www.brix.so/integrations/quickbooks): Syncs customers, invoices and payments with QuickBooks so the books match the jobs.

## Frequently asked questions

### Should I put sales tax on my invoice for a Nevada remodel?

No. The Department of Taxation says there should be no sales tax added to the invoice for finished construction work, because you already paid tax on the materials. If you show sales tax, the department can treat the job as a retail sale, and you must remit whatever tax you collected.

### Who pays the tax on construction materials in Nevada?

The contractor does. Nevada treats construction contractors as the consumers of the materials they buy for a job. You pay sales tax to a Nevada vendor at the counter, or report use tax yourself when an out-of-state vendor doesn't collect it. Keep receipts that show which one you paid.

### Do I owe Nevada Commerce Tax as a small contractor?

Only if your Nevada gross revenue tops $4,000,000 in the fiscal year that ends June 30. For construction businesses, NRS 363C.340 sets the tax at 0.083% of gross revenue above that $4,000,000. The department says businesses below the threshold are exempt.

### What is the Modified Business Tax rate for contractors?

Most general business employers pay 1.17%, effective July 1, 2023, on quarterly wages above $50,000, after subtracting employee health benefits the employer pays. The return is filed every quarter. Half of last year's Commerce Tax can be credited against it.

### Can I do handyman work in Nevada without a license?

Only small jobs. NRS 624.031 exempts repair or maintenance worth less than $1,000, labor and materials included. It doesn't cover work that needs a building permit, plumbing, electrical, refrigeration or HVAC work, or pieces of a larger project worth $500 or more.

### How much is the Nevada contractor bond?

There's no single number. NRS 624.270 says the board fixes each bond or cash deposit based on your financial and professional responsibility and the size of your operations, between $1,000 and $500,000. The board can raise or lower it later.

### Where do Nevada contractors get workers' comp?

From a private insurance carrier licensed in Nevada, or by being certified by the Division of Insurance as a self-insured employer or member of a self-insured group. Coverage is required once you have one employee. Uninsured employers face fines of up to $15,000.

## Related

- [Do Contractors Charge Sales Tax on Labor or Materials?](https://www.brix.so/learn/sales-tax-on-labor-vs-materials)
- [What Is Use Tax for Contractors?](https://www.brix.so/learn/use-tax-for-contractors)
- [What Is a Contractor License?](https://www.brix.so/learn/contractor-license)
- [What Is Workers' Compensation Insurance?](https://www.brix.so/learn/workers-compensation)
- [What Is a Mechanic's Lien?](https://www.brix.so/learn/mechanics-lien)
- [Quarterly Estimated Tax Calculator for Self-Employed Contractors (2026)](https://www.brix.so/tools/quarterly-estimated-tax-calculator)
- [California Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/california)
- [Arizona Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/arizona)
- [Utah Contractor Taxes and Licensing Guide](https://www.brix.so/taxes/utah)
- [Self-Employment Tax Calculator (2026)](https://www.brix.so/tools/self-employment-tax-calculator)

## Sources

- [Nevada Department of Taxation, Construction (contractor as consumer, NAC 372.200; fabrication labor; resale certificates)](https://tax.nv.gov/education/construction/) (checked 2026-10-19)
- [Nevada Department of Taxation, Tax Bulletin SUT 14-0002, Construction Contractors (no sales tax on invoice; use tax and credit; common mistakes)](https://tax.nv.gov/wp-content/uploads/2024/06/Construction_Contractors.pdf) (checked 2026-10-19)
- [Nevada Department of Taxation, Sales Tax & Use Tax (6.85% base rate; county rates and effective dates; filing frequency)](https://tax.nv.gov/tax-types/sales-tax-use-tax/) (checked 2026-10-19)
- [Nevada Department of Taxation, Sales Tax Information & FAQs (returns due the 20th)](https://tax.nv.gov/FAQs/Sales_Tax_Information___FAQ_s/) (checked 2026-10-19)
- [Nevada Department of Taxation, Income Tax in Nevada](https://tax.nv.gov/about-nevada-department-of-taxation/income-tax-in-nevada/) (checked 2026-10-19)
- [Nevada Department of Taxation, Commerce Tax ($4 million threshold; 2025–2026 due date)](https://tax.nv.gov/tax-types/commerce-tax/) (checked 2026-10-19)
- [NRS chapter 363C, Commerce Tax (NRS 363C.200; construction rate, NRS 363C.340)](https://www.leg.state.nv.us/NRS/NRS-363C.html) (checked 2026-10-19)
- [Nevada Department of Taxation, Modified Business Tax (1.17% general business rate effective July 1, 2023)](https://tax.nv.gov/tax-types/modified-business-tax/) (checked 2026-10-19)
- [NRS chapter 363B, NRS 363B.110 (quarterly wages over $50,000; Commerce Tax credit)](https://www.leg.state.nv.us/nrs/nrs-363B.html) (checked 2026-10-19)
- [NRS chapter 624, Contractors (NRS 624.031, 624.035, 624.215, 624.220, 624.256, 624.270)](https://www.leg.state.nv.us/nrs/nrs-624.html) (checked 2026-10-19)
- [NAC chapter 624, Contractors (classifications A, B and C, NAC 624.140–624.574)](https://www.leg.state.nv.us/nac/nac-624.html) (checked 2026-10-19)
- [Nevada State Contractors Board](https://www.nvcontractorsboard.com/) (checked 2026-10-19)
- [Nevada DIR Workers' Compensation Section, Employer Guide (rev. 8/25)](https://dir.nv.gov/uploadedFiles/dirnvgov/content/WCS/EmployersDocs/EmployerBrochure.8.2025.pdf) (checked 2026-10-19)

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Written by BRIX Editorial Team. Last updated 2026-10-19. General information, not tax, legal or financial advice.
Canonical: https://www.brix.so/taxes/nevada