States With No Corporate Income Tax: Is Wyoming or Nevada Better?

Wyoming and Nevada both charge zero corporate income tax, yet they are not identical tax environments. The difference that matters most for most businesses is Nevada's Commerce Tax, a gross receipts levy that Wyoming simply does not impose.

Which States Actually Have No Corporate Income Tax?

As of 2026, six states levy no corporate income tax: Nevada, Ohio, South Dakota, Texas, Washington, and Wyoming. That list is shorter than it looks. Ohio, Texas, and Washington all impose gross receipts taxes that function as a substitute, hitting revenue rather than profit. Nevada has its own gross receipts mechanism. South Dakota and Wyoming are the cleanest two on the list, collecting neither a corporate income tax nor a gross receipts tax at the state level.

So the real competition for businesses that want the lowest possible state-level business tax burden is Wyoming versus South Dakota, with Nevada as a close third. This post focuses on Wyoming and Nevada because they attract the most business formation filings and the most relocation inquiries.

Nevada's Hidden Tax: The Commerce Tax

Nevada charges no corporate income tax, and that headline draws a lot of business owners in. What the headline omits is the Commerce Tax, which applies to businesses with Nevada gross revenue above $4 million per year. Rates vary by industry, ranging from 0.051% for mining to 0.331% for rail transportation, with most service and retail categories falling between 0.1% and 0.26%.

For a company doing $10 million in Nevada gross revenue in the retail sector, that Commerce Tax bill lands around $15,000 to $26,000 per year before any deductions. Wyoming charges nothing comparable. A Wyoming-based business with identical revenue owes zero state-level tax on gross receipts.

Nevada also imposes a Modified Business Tax on wages, currently set at 1.378% on quarterly payroll above $50,000 for most businesses and 2.0% for financial institutions. Wyoming has no equivalent payroll tax. For a 20-person company with a $2 million annual payroll, Nevada's Modified Business Tax adds roughly $27,000 per year in costs Wyoming simply does not impose.

Wyoming's Advantage Goes Beyond the Tax Rate

Wyoming's tax profile is genuinely minimal. There is no corporate income tax, no gross receipts tax, no personal income tax, no franchise tax, and no inventory tax. The state also does not tax intangible assets, which matters significantly for holding companies, IP-heavy businesses, and investment vehicles.

Wyoming LLC and corporation formation fees are low, and the state has built a serious reputation as a formation jurisdiction, particularly for LLCs, Series LLCs, and DAOs. Annual report fees for a Wyoming LLC run $60 minimum, scaling modestly with assets located in the state.

Property taxes in Wyoming are low by national standards. The effective rate on commercial property sits around 0.57% (as of late 2025 assessment data), compared to Nevada's effective commercial property tax rate of roughly 1.0% to 1.5% depending on county, with Clark County, home to Las Vegas, sitting at the higher end of that range.

Sales tax adds another layer of comparison. Wyoming's base state sales tax is 4%, with counties adding up to 2% for a typical combined rate around 5.36%. Nevada's base state rate is 6.85%, with Clark County pushing the combined rate to 8.375%. For retail businesses buying taxable supplies and equipment, that gap compounds over time.

When Nevada Still Makes Sense

Wyoming's tax structure wins on paper, but Nevada has real advantages that override pure tax math for some businesses. The Las Vegas metro area has 2.2 million people. Wyoming's entire population is under 600,000. Market access, talent pools, logistics infrastructure, and customer proximity are not tax line items, but they affect the bottom line.

Nevada also has McCarran International, now Harry Reid International, as a major air hub, and a well-developed commercial real estate market for warehouse, distribution, and hospitality operations. Businesses that need those assets pay the Commerce Tax and Modified Business Tax as the cost of access.

For holding companies, IP licensing entities, investment vehicles, and remote-first businesses with no location dependency, Wyoming is the cleaner choice with no close second. For businesses that need Nevada's physical market or infrastructure, the tax premium is the price of that access.

You can run your specific entity type and revenue figures through our state tax calculator to see how the numbers land for your situation. If you are also thinking about personal income tax exposure, our breakdown of capital gains tax by state shows how Wyoming and Nevada compare on investment income. Business owners planning for succession should also review our estate tax by state analysis, since neither Wyoming nor Nevada levies an estate tax.

Key Takeaways

• Wyoming charges zero corporate income tax, zero gross receipts tax, zero payroll tax, and zero personal income tax. It is the cleanest no-tax state for business entities in 2026.
• Nevada's Commerce Tax applies above $4 million in gross revenue at rates from 0.051% to 0.331% by industry, plus a Modified Business Tax of 1.378% on payroll above $50,000 per quarter.
• Wyoming's effective commercial property tax rate is approximately 0.57% versus Nevada's 1.0% to 1.5% range, and Wyoming's average combined sales tax rate of 5.36% is significantly below Nevada's 8.375% in Clark County.

Compare Wyoming, Nevada, and every other state side by side on LiveOrDieHere.com to find the right home for your business.