No. SaaS (software as a service) is not taxable in Nevada, nor are digital goods. Furthermore, Nevada Annotated Code section 372.880 states that canned (prewritten) software is taxable only if it is delivered via a tangible medium.
Nevada’s Department of Taxation also explains that "software, electronic magazines, clipart, program code, or other downloaded material" are not taxed unless they are delivered via a tangible medium, such as a disk or CD.
This guide will explain more about the taxability of SaaS, so you can understand your obligations wherever you do business.
Why this matters
Sales tax rules vary from state to state, including rules governing the taxability of SaaS. So, any company that provides SaaS needs to understand the rules wherever it has customers.
That's because if your company has a sufficient presence in a state (this is known as having nexus there — more on this later), and the products or services that you sell there are taxable, then your company becomes obligated to register with that state, collect sales tax on sales there, and remit the collected amounts to the appropriate authorities. Failure to fully comply with these regulations could lead to audits, fines, and penalties.
Unfortunately, figuring out the tax rules in all of these different states can be a challenge (and in some states, laws vary from one jurisdiction to another), particularly because tax laws frequently change. In fact, a growing number of states have begun (or are considering) taxing SaaS products, as lawmakers determine how to classify and treat digital goods in their tax codes.
By monitoring the rules in Nevada and elsewhere, you can ensure that your business doesn't run afoul of sales tax regulations in all the places where you have customers, thus protecting your company from compounding liability.
Taxation rules in Nevada
According to Nevada Annotated Code section 372.880, prewritten computer software, including software that's sold, leased, or licensed, is subject to sales tax unless it is electronically delivered. Mandatory, and some optional, maintenance contracts for prewritten software may also be taxed.
Only physical goods and specific services are subject to Nevada's sales tax, and SaaS and other digital goods are not among them. So you don’t have to worry about collecting taxes on your sales of SaaS or other digital goods, no matter how many buyers you have in the state of Nevada.
In the past, lawmakers have attempted to change these rules, though. State Senator Dina Neal has repeatedly introduced a bill to tax digital goods. Senate Bill 396 would have broadened the tax base in Nevada to include digital goods, including streaming services and e-books.
Her attempts were unsuccessful, as the bill never received a vote, despite Senator Neal testifying before her peers and bringing props, including a cassette tape and CD. She urged her peers to modify the rules and argued that the economy had changed, so state sales tax rules needed to change with it.
Despite her efforts, SaaS and other digital products remain untaxed as of 2025.
While Nevada doesn’t tax SaaS, you might still want to think about compliance
According to Numeral's research, around half of all states currently tax SaaS or have local areas that do, including bordering states like Utah and Arizona. You may be responsible for collecting sales tax on sales in these states, even if your business isn’t located within the state's borders.
If your company sells into a state that taxes SaaS and you are subject to its tax rules, then you must:
- Register to collect sales tax.
- Charge your customers sales tax at the correct rate.
- File required tax forms and submit your sales tax payments to the state as required.
You are not necessarily required to do this in every state where you do business, though. You become subject to a state's tax rules once you establish nexus there.
So the first step in understanding your obligations is determining whether you have nexus.
Nexus in Nevada
Having nexus in a state means that you are required to collect tax on eligible sales there. Nexus can be physical or economic.
Physical nexus is simply a physical presence — for instance, an office, inventory, or employees — within a state's borders.
In the past, nexus could be established only by a physical presence. But in 2018, with a ruling in South Dakota v. Wayfair, Inc., the U.S. Supreme Court allowed states to set thresholds for economic nexus. These nexus thresholds vary from state to state, but they are based on sales revenue and/or the number of separate sales within a state.
You may have physical nexus in Nevada if you:
- Have an office or a place of business within the state.
- Have employees, independent contractors, or other representatives of your business who work in the state.
- Have goods stored in a Nevada warehouse.
- Deliver goods within the state in vehicles registered in Nevada.
Under Nevada law, for example, remote sellers establish economic nexus and become required to register and collect sales or use tax if they have more than $100,000 of retail sales within the state or if they have 200 or more separate retail transactions in the state.
Remote sellers who hit this threshold must register on the first day of the calendar month starting at least 30 days from the time they hit the threshold.
After you’ve established nexus in a state, you need to know whether SaaS is taxable there, so you can correctly charge customers.
Staying compliant nationwide
Complying with all of these rules can be incredibly difficult. You not only have to track nexus in every state where people buy your products, but also have to know the sales tax rules in each of those locations.
Once you’ve established nexus in a state, you must register to collect tax there, collect it, file tax forms based on the schedule the state requires, and remit the amounts you’ve collected from customers within a specified time. If you fail in any of these steps, then you risk audits, fees, and fines for noncompliance with state and local sales tax rules.
Many businesses find this burden too much to handle, but there are solutions. For example, you can turn to Numeral to handle your sales tax compliance. Numeral will handle every step of the compliance process, from tracking nexus to registering with state and local authorities.
Numeral also handles adding tax to sales of SaaS and other items when required, charging the correct amount of tax, filing your tax forms, and paying the state or local authorities on time. You won't have to get into the weeds of complex tax laws, monitor state regulations changes, or spend your days filling out sales tax forms if you partner with Numeral to handle all these tasks on your company's behalf.
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Additional resources for staying compliant
Since tax rules change over time, and Nevada lawmakers have already shown a willingness to modify the state’s rules, it's important to monitor for changes on SaaS taxability in Nevada. These resources can help you to keep up-to-date with legal changes, to ensure that you are always in compliance with the rules.
- Nevada Department of Taxation: Sales and Use Tax
- State of Nevada: Sales Tax FAQ
- Nevada Taxpayers Association: Tax Resources
Final thoughts
Sales tax compliance is complicated, and SaaS sellers face an additional layer of complexity because SaaS taxability rules are still evolving in many states.
While SaaS is not taxable in Nevada, you’ll need to follow legal developments in this state and know the rules for all the other locations where you do business.
If you don't want to spend your days managing these tasks, you can turn to a service like Numeral to take care of them for you, so you don't risk an audit due to not knowing what's required, and so you can focus on other aspects of running your business.
