Nevada Employers Will See Lower Payroll Tax Rates in 2027

Nevada businesses with variable contribution rates can expect a decrease in unemployment insurance costs next year.

Updated on Sept. 27, 2026 in Employment

Bold flat-color editorial illustration of a heavy stone vault in the desert, representing state financial reserves. — The Nevada Department of Employment, Training and Rehabilitation has proposed a 1.35% average unemployment insurance tax rate for 2027, the second consecutive annual reduction. AI Illustration. Upload story photo >

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Will Nevada's reduced payroll tax rate for 2027 result in a stronger state economy?

The Nevada Department of Employment, Training and Rehabilitation has recommended a 1.35% average unemployment insurance tax rate for 2027. This adjustment follows a 1.45% rate in 2026 and marks the second consecutive year of rate reductions for the state.

Why it matters

The annual rate adjustment aims to align payroll tax contributions with anticipated benefit costs and the state's reserve fund levels. This ensures the Trust Fund remains solvent for future economic downturns while managing current business tax liabilities.

The proposed 1.35% average unemployment insurance tax rate for 2027 represents a decrease from the 1.45% rate seen in 2026. The state projects the Trust Fund will hold a $400 million surplus beyond total benefit obligations.

The players

Nevada Department of Employment, Training and Rehabilitation

The state agency that manages employment insurance, tax collection, and workforce development benefits.

Employment Security Council

The body responsible for making policy recommendations regarding the state's unemployment insurance contribution rates.

The details

The rate change applies to Nevada businesses classified as having enough experience to pay a variable contribution rate. By lowering the average rate for two straight years, the state is effectively adjusting the tax burden for employers as the Trust Fund reaches adequate reserve levels not seen since 2020.

2020: The last year the Trust Fund maintained adequate reserves.
2026: The year the average unemployment insurance tax rate was 1.45%.
September 2026: The month the Employment Security Council recommended the 2027 rate.
November 30, 2026: The date of the next public meeting on the rulemaking process.
2027: The year the proposed 1.35% average tax rate takes effect.

Money Landscape

This tax adjustment marks a return to fiscal stability following the volatility of the 2020 Nevada Trust Fund depletion. Nevada is now moving to lower employer costs as the system regains the reserve levels required for future economic resilience.

Business owners should review their payroll expense projections for the coming year to account for this 0.10 percentage point reduction in average tax liability. Consult with a professional tax advisor to determine how your specific experience rating will influence your final contribution rate for 2027.

The takeaway

Nevada's movement toward lower payroll taxes reflects an improving surplus in the state unemployment Trust Fund. Employers should prepare to participate in the upcoming public meeting on November 30, 2026, at 1:00 PM to offer input on the final rulemaking process.