Updated for 2026 (Filing 2025 Taxes)
The Silver State’s burgeoning tech scene offers web developers exciting opportunities, but navigating the tax landscape as a self-employed professional requires careful planning. As a web developer operating independently in Nevada, understanding your federal and state tax obligations is crucial for financial health.
All income earned as a web developer, regardless of payment method (cash, check, online platforms), is considered taxable income by the IRS. This income must be reported on Schedule C (Profit or Loss from Business) when filing your federal income tax return. Crucially, independent contractors are responsible for paying both the employer and employee portions of Social Security and Medicare taxes, collectively known as self-employment tax. This applies to net earnings exceeding $400.
Nevada distinguishes itself as one of the few states with no state income tax. This means Nevada residents and businesses are not subject to a state-level tax on earnings. However, this does not exempt web developers from federal income tax or self-employment tax obligations. The lack of state income tax often attracts entrepreneurs to Nevada, but diligent federal tax compliance remains paramount. While Nevada doesn’t have a traditional income tax, businesses operating within the state are subject to the Modified Business Tax (MBT), a payroll tax. As a sole proprietor without employees, this typically won’t apply directly, but it’s important to be aware of if your business grows. Furthermore, Nevada does collect sales tax on certain digital products and services; web developers providing these services should ensure they are properly registered with the Nevada Department of Taxation and collecting/remitting sales tax as required. The state’s focus on attracting businesses means resources are available to help navigate these requirements. Nevada’s unique economic structure, heavily reliant on tourism and increasingly on technology, means understanding the nuances of its tax system is vital for long-term success.
For more information on Nevada’s tax regulations, please visit the Nevada Department of Taxation.
Note on Mileage: As a home-based worker, mileage deductions are less common. However, you can claim mileage for occasional trips to meet with clients, attend industry events, or purchase supplies directly related to your business.
The 15.3% self-employment tax is comprised of two components: 12.4% for Social Security and 2.9% for Medicare. This tax effectively covers both the employer and employee portions of these taxes, as you are both the employer and employee when self-employed. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).
Estimate your taxes using current IRS rules.
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*Disclaimer: This is a simplified estimate. Includes SE Tax, State Tax, and QBI Deduction impact. Consult a CPA.
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