Nevada Will Cut Unemployment Tax Rate in 2027
The state intends to lower its average unemployment insurance tax rate to 1.35% for the upcoming calendar year.
Updated on Sept. 27, 2026 in Employment
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The Nevada Department of Employment, Training and Rehabilitation has recommended a 1.35% average unemployment insurance tax rate for 2027. This proposed rate represents a reduction from the 1.45% average rate seen in 2026.
Why it matters
The tax rate adjustment is based on anticipated unemployment insurance benefit costs and reserve fund levels. These changes are intended to prepare the state's Trust Fund for potential future recessions.
The proposed 1.35% rate applies to businesses that pay a variable contribution rate based on experience. The state Trust Fund is projected to hold a $400 million surplus beyond the cost of benefit payments for the first time since 2020.
The players
Nevada Department of Employment, Training and Rehabilitation
This state agency oversees workforce development, employment services, and the administration of the unemployment insurance system in Nevada.
Employment Security Council
This body is responsible for advising the state on unemployment insurance policy and reviewing proposed tax rate adjustments.
The details
The Employment Security Council arrived at the recommended rate following a public meeting and presentation by the Employment Security Division Administrator. This adjustment marks the second consecutive year of rate reductions for Nevada employers.
Timeline
2020 marked the last year the Trust Fund maintained adequate reserves.
The average UI tax rate was 1.45% during 2026.
The Employment Security Council recommended the 2027 rate in September 2026.
A public meeting on the rulemaking process is scheduled for November 30, 2026.
The new 1.35% average tax rate will apply throughout the 2027 calendar year.
Macro View
This tax rate reduction follows historical patterns of adjusting contributions to match labor market conditions and Trust Fund health. It reflects a departure from the economic instability seen in the 2020 period, which previously depleted the state's unemployment reserves.
Businesses in Nevada with variable contribution rates can anticipate lower tax obligations starting in 2027. This reduction may improve cash flow for local employers as the state restores its financial cushion against future economic downturns.
The takeaway
Nevada is prioritizing the replenishment of its unemployment Trust Fund to reach pre-2020 solvency levels. Employers should prepare for the implementation of the lower 1.35% average rate in the coming year.
What happens next
A public meeting regarding the rulemaking process for these tax rates is scheduled for November 30, 2026, at 1:00 PM.
Further reading
For more on the state's labor market, visit Nevada Employment.
Source note: This article includes information reported by Carson Now.
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