Nevada vacation rental tax guide

With a bounty of popular destinations including Las Vegas and Lake Tahoe, the Silver State offers ample opportunity for short-term rental (STR) businesses.

But these opportunities come with tax obligations. While Nevada doesn’t have a statewide tax on accommodations, STRs in Nevada may be subject to city or county lodging taxes. Failure to comply with tax laws can result in fines and penalties. Tax jurisdictions are increasingly making STR tax compliance a priority, so it’s important to address compliance before tax authorities address it for you.

Avalara MyLodgeTax put together this guide to help you comply with Nevada lodging tax laws at the state level. Local jurisdictions such as cities or counties may have their own lodging tax rules. For more information on the tax rates and jurisdictions that apply to your rental’s specific location, use our lodging tax lookup tool.

No lodging tax guide is a substitute for professional tax advice. Consider this an asset to help you understand and prioritize your lodging tax questions and concerns. Questions pertaining to specific situations or out-of-the-ordinary conditions are best solved with a certified tax professional familiar with Nevada tax laws.

Lodging tax basics

Lodging tax is calculated as a percentage of the cost of your guest’s stay and added to the price on the bill. The guest pays the tax, but the STR operator is responsible for collecting and paying it to the proper tax authority.

What’s the definition of “short-term rental” in Nevada?

STRs in Nevada are defined by each local jurisdiction.

Who’s required to collect and file lodging taxes on short-term rentals in Nevada?

If you collect payment from short-term guests renting out a room, apartment, house, or other dwelling in a jurisdiction that levies lodging tax, you may be responsible for collecting, filing, and remitting applicable lodging taxes to city and/or county authorities.

Location is key to compliance

The location of your rental is a crucial piece of information for lodging tax compliance. Your address determines which tax jurisdictions you’re required to report to, which taxes you need to collect, and the appropriate tax rates.

Use our lodging tax lookup tool to get a rate report specific to your Nevada rental’s address. The report includes the estimated total tax rate to collect from guests, number of required registrations, number and frequency of returns per year, and minimum number of rented days to qualify as a taxable stay. It should be noted that tax rates and the rules governing them change frequently. Please consider your tax rate report to be informative rather than authoritative.

Local short-term rental regulations

STR operators in Nevada should be aware of the local regulations that apply to them, including rules covering:

• Legality
• Permits, licenses, and registration
• Zoning
• Advertising
• Neighborhood notification
• Building and housing standards

Homeowner associations (HOAs), condominium communities, co-ops, and landlords may also have specific rules regarding vacation rentals. It’s your responsibility to be aware of STR policies that apply to your property.

Registering with tax authorities

Since Nevada doesn’t have a statewide tax on accommodations, you don’t need to register with the Nevada Department of Taxation as an STR operator. However, you may be required to register with city and/or county tax authorities.

Collecting lodging tax

Once you’ve registered with tax authorities, you’re ready to start collecting lodging taxes, which you’ll add to your guest’s bill when they pay for their stay.

Which taxes apply to Nevada short-term rentals?

In Nevada, STRs may be subject to city or county lodging taxes, depending on the jurisdiction.

Tax rates

Before you can begin collecting lodging taxes, you need to know the correct rate to charge to avoid compliance issues. Our lodging tax lookup tool can give you a rate report specific to your Nevada address.

What charges are taxable?

Generally, anything that the host requires the guest to pay in order to use the accommodations is considered part of a taxable rental fee. This includes items such as cleaning fees, pet fees, rollaway bed fees, extra person fees, etc. Check with your local tax authority for rules that apply to your STR.

What happens when my short-term rental marketplace (such as Airbnb or Vrbo) collects lodging taxes for me?

In Nevada, some vacation rental marketplaces such as Airbnb and Vrbo collect lodging taxes for you when the listing is booked. If taxes aren’t being collected for you, you’re responsible for collecting and remitting them to  tax authorities.

Are guests ever exempt from lodging taxes?

There are situations in which you aren’t required to collect lodging taxes in Nevada. For example, a guest who rents for a long term rather than a short term is exempt from lodging taxes. Check with your local tax authority for other exemptions that apply to your STR.

Filing lodging tax returns

After you’ve collected taxes from your guests, it’s time to file your tax returns with local tax jurisdictions. You’ll need to enter information on how much you charged for your rentals and pay the tax due.

When do I need to file my returns?

You’ll be assigned a filing frequency and due dates when you register with the tax authority.

I didn’t rent my property during this filing period. Am I still required to file a tax return for my short-term rental?

You may be required to file returns each assigned filing period, regardless of whether you had any STR income or collected any lodging taxes. Such returns are commonly known as “zero dollar returns.” Make sure you understand the policy in your tax jurisdiction.

Are there penalties for filing taxes late?

Whether you choose to offer STRs through a marketplace like Airbnb or Vrbo, or directly to guests, you open the door to tax liability at the state and local level. As tax revenue is a major source of local funding, tax authorities are becoming more aggressive in their efforts to identify individuals and businesses violating lodging tax laws. Failure to register with tax authorities and file lodging tax returns in Nevada on time may result in late fees, interest payments, and in extreme cases, legal action.

I've been offering short-term rentals without collecting lodging tax. What options do I have?

If you’re already operating an STR but not collecting lodging taxes, you may be in violation of local tax laws. Take the time to review your legal responsibility (with a tax professional, if necessary) and understand the risk of continuing to not collect tax.

STR hosts in Nevada may be able to take advantage of a voluntary disclosure agreement (VDA). A VDA offers an opportunity for operators to proactively disclose prior period tax liabilities in accordance with a binding agreement with the tax authority. VDAs are offered to encourage cooperation with tax laws and may result in some or all penalty and interest payments being waived.

Are there options for outsourcing lodging tax filing?

Yes. Many STR operators in Nevada file several lodging tax returns every year. Filing solutions such as Avalara MyLodgeTax can relieve this burden.