Politics
Anthony proposes doubling Nevada small-business payroll tax exemption
Nevada Lt. Gov. Stavros Anthony is proposing a larger payroll-tax exemption for qualifying small businesses in the 2027 legislative session. His plan would raise the quarterly exemption from $50,000 to $100,000 and extend eligibility to companies with as many as 50 employees.
CARSON CITY, Nev. — Nevada Lt. Gov. Stavros Anthony is proposing a tax break for small businesses that would double the payroll amount exempt from the state’s Modified Business Tax and expand which employers qualify.
The Nevada Small Business Tax Relief Act of 2027 would increase the quarterly exemption from $50,000 to $100,000 and raise the employee eligibility limit from 20 to 50. Anthony is seeking consideration of the proposal during the 2027 legislative session; the plan has not been described as enacted law.
At the current general-business tax rate of 1.17%, an eligible business with $100,000 in taxable payroll per quarter would see its Modified Business Tax bill on that payroll fall from $585 to zero, under the proposal. Anthony says qualifying businesses could save up to $2,340 a year.
He said the savings could help employers hire workers, raise wages, provide benefits and training, or invest in equipment and expansion. The proposal would use the existing tax-filing process, rather than require a separate application, according to Anthony.
“Small businesses are the backbone of Nevada’s economy,” Anthony said, arguing that the state should support businesses already operating in local communities as well as efforts to attract large companies.
The proposal is targeted at smaller employers rather than Nevada’s largest businesses. The announcement did not provide an estimate of the plan’s total cost to state revenue or details about its prospects in the Legislature.