Nevada Employers Will See Lower UI Tax Rates in 2027
State regulators plan to cut average unemployment insurance rates to 1.35% for the coming calendar year.
Updated on Sept. 27, 2026 in Employment
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The Nevada Department of Employment, Training and Rehabilitation recommended a 1.35% average unemployment insurance tax rate for 2027, down from the 1.45% rate in 2026. This adjustment applies to businesses with enough experience to pay a variable contribution rate.
Why it matters
Annual tax rate adjustments are driven by projected unemployment benefit costs and reserve fund stability. For the first time since 2020, the state's Trust Fund is expected to hold adequate reserves to cover potential future recessions.
The proposed 1.35% average unemployment insurance tax rate represents a decrease from the 1.45% rate in 2026, marking two consecutive years of reductions. The state Trust Fund is projected to hold a $400 million surplus beyond total benefit obligations.
The players
Nevada Department of Employment, Training and Rehabilitation
The state agency responsible for overseeing unemployment insurance, workforce development, and employer tax assessments.
Employment Security Council
An advisory body tasked with recommending tax rate adjustments to ensure the solvency of the state unemployment fund.
The details
The rate is set based on annual evaluations of anticipated benefit costs and required reserve levels. Businesses with sufficient operating experience to qualify for a variable contribution rate are subject to these adjusted figures. Regulators aim to balance current operational costs with the long-term solvency of the unemployment trust.
Timeline
2020 marked the last time the Trust Fund held adequate reserves.
The 2026 average tax rate was 1.45%.
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 proposed 1.35% average tax rate takes effect in 2027.
Market Landscape
This tax adjustment aligns with the state's internal mechanisms for maintaining the solvency of the unemployment trust fund. It follows a multi-year recovery period for the fund that extends beyond the pandemic-era baseline established in 2020.
Nevada business owners should review their projected payroll tax liabilities for the coming year to reflect the lower contribution rate. Confirm your eligibility status with the state to ensure your 2027 tax planning aligns with these upcoming changes.
The takeaway
The move to a 1.35% tax rate suggests an improving outlook for the state's unemployment trust fund. Operators should monitor the November 30, 2026, public meeting for any final modifications to the rulemaking process.
What happens next
The Employment Security Division will host a public meeting regarding the rulemaking process on November 30, 2026, at 1:00 PM.
Further reading
For more on labor cost shifts in the state, visit the Nevada Employment section.
Source note: This article includes information reported by Carson Now.
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