Does acetaminophen causes nephrotoxicity?

It can as excessive amounts are excreted by the kidney, otherwise metabolized by the liver mostly at lower doses, relatively rare, but well described.

Yes, acetaminophen can cause chronic kidney disease. Risk of acetaminophen induced nephrotoxicity is much higher with daily use of Tylenol than occasional use to no risk at all with non or rarely use and this adverse effect is well documented by study.