Nevada Car Tax: How to Calculate and Pay
Gain clarity on Nevada's car tax, how it's tied to your vehicle's value, and the specific circumstances that can lower your annual payment.
When registering a vehicle in Nevada, owners pay an annual “car tax” officially known as the Governmental Services Tax (GST) as part of their registration renewal. The revenue from the GST funds local governments, including public school districts, law enforcement, and fire departments. This tax is calculated based on the vehicle’s value and is separate from other registration fees, such as the base registration fee.
Calculating the Governmental Services Tax
The calculation for the Governmental Services Tax is a process based on a vehicle’s value, starting with the Manufacturer’s Suggested Retail Price (MSRP). The Department of Motor Vehicles (DMV) establishes the initial valuation for tax purposes at 35% of the original MSRP. This figure is the constant starting point for the tax calculation throughout the vehicle’s life, regardless of its current condition or market value.
A state depreciation schedule is then applied to this valuation. For the first year, the vehicle’s value is reduced by 5%, and by 10% for each subsequent year. This depreciation continues until the assessed value reaches a floor of 15% of its original MSRP, which typically occurs after nine years. The minimum Governmental Services Tax is $16.00.
The statewide basic GST rate is 4 cents for each dollar of the final depreciated value. Some counties also impose a Supplemental Governmental Services Tax (SGST) of 1 cent for each dollar of the depreciated value. The final tax liability is the depreciated value multiplied by the combined GST and any applicable SGST rates.
Estimating Your Tax Liability
The Nevada DMV provides an official online tool, the registration fee estimator, to project the Governmental Services Tax and other registration costs. This tool simplifies the process for residents, providing a clear financial picture before they need to pay. The estimator can be accessed directly through the Nevada DMV website.
To use the online estimator effectively, you will need to provide the Vehicle Identification Number (VIN). The system can often pull the exact MSRP and vehicle specifics from its database using this number. If the VIN is not available, you will need to manually enter the vehicle’s original MSRP, model year, make, and the county where it is registered.
The tool calculates the depreciated value based on the vehicle’s age and original MSRP, applies the correct local tax rates, and combines the GST with other required fees, such as the standard $33 base registration fee. This provides a comprehensive estimate of the total amount due for registration renewal.
Available Tax Exemptions and Credits
Nevada law provides property tax exemptions that can be applied to the Governmental Services Tax for certain qualifying individuals. These exemptions provide a dollar amount deduction from the vehicle’s assessed valuation before the tax is calculated. The primary exemptions are available for eligible veterans, surviving spouses, and blind individuals.
Veterans and Surviving Spouses
Veterans who have served a minimum of 90 continuous days of active duty and received an honorable discharge may qualify for a tax exemption. A more significant exemption is available for veterans with a permanent service-connected disability, with the deduction amount dependent on the degree of disability. A surviving spouse of a qualifying veteran may also be eligible if they have not remarried. To apply, veterans must present their separation papers (DD214) and disability documentation to their county assessor’s office.
Blind Individuals
An exemption is also available to Nevada residents who are legally blind. To qualify, an individual must provide a statement from a doctor verifying that their visual acuity does not exceed 20/200 in their better eye with correction, or that their field of vision is 20 degrees or less. Applicants must apply through their local county assessor’s office.
When a vehicle is sold or traded and the license plates are transferred to a new vehicle, the owner is entitled to a pro-rated credit for the GST they have already paid. This credit is automatically applied toward the registration fees and taxes due on the replacement vehicle.
Paying the Governmental-Services-Tax
The Governmental Services Tax is paid annually as part of the vehicle registration renewal process. Vehicle owners will receive a renewal notice from the DMV in the mail, which will itemize all the fees and taxes due. The GST will be listed as a separate line item on this notice.
Several methods are available for paying the GST and renewing a vehicle’s registration:
- Online through the state’s MyDMV portal.
- By mail by sending a check with the payment coupon from the renewal notice.
- At a DMV kiosk, which are located in various partner locations.
- In person at a DMV office.
Upon successful payment, the owner receives a new registration certificate and a decal for the vehicle’s license plate.