Diapers exempt from Nevada sales tax starting January 1, 2025

Diapers are exempt from Nevada sales tax starting January 1, 2025. If you sell diapers in Nevada and are registered to collect and remit Nevada sales tax, here’s what you need to know.

The diaper tax exemption was proposed by the Nevada Legislature. Senate Bill 428, signed into law on June 15, 2023, called for the proposed sales and use tax exemption for diapers to be put to a vote of the people.

Residents of Nevada overwhelmingly voted in favor of the sales tax exemption for diapers on November 5, 2024. More than 68% of voters said yes to Nevada Question 5, the Sales Tax Exemption for Diapers Measure.

Under SB 428 and Nevada Question 5, all diapers are sales tax exempt — whether for adults, babies, or children. “Diaper” means “any type of diaper intended for use by a child or an adult, including, without limitation, a disposable diaper.”

That’s not the case in all states. In Ohio, for example, diapers for children are sales tax exempt as of October 1, 2023, but adult diapers are tax exempt only when all the following conditions are met.

1. They’re sold pursuant to a prescription.
2. They’re sold for the benefit of a Medicaid recipient with a diagnosis of incontinence.
3. They’re sold by a Medicaid provider that maintains a valid provider agreement under R.C. 5164.30 with the Department of Medicaid.

Per Nevada Question 5, the sales and use tax exemption for diapers will expire on December 31, 2050.

On December 9, 2024, a search for “diapers” on the Nevada Department of Taxation website yielded no results. If the Nevada Department of Taxation has announced the sales tax exemption for diapers, it’s keeping it under wraps. That’s got to be frustrating for any business striving to be sales tax compliant in Nevada.

Automating sales tax calculation, collection, and remittance helps businesses comply with changes such as these. Learn more about Avalara cloud-based sales tax solutions.