Why There’s No Inheritance Tax in Nevada
Learn why there’s no inheritance tax in Nevada, one of the reasons the state is an attractive one for estate planning.
Curious why there’s no inheritance tax in Nevada? The short answer: Nevada never adopted one, and it kept that stance while other states phased theirs out or redesigned estate taxes in the 2000s. Today, beneficiaries in Nevada don’t pay a state levy on what they receive.
An inheritance tax is paid by the beneficiary and depends on the recipient’s relationship to the person who passed. Only a handful of states still use it—currently Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania (Iowa ended its tax January 1, 2025). Nevada is not on that list.
Nevada historically relied on a pick-up estate tax tied to a federal credit—not a separate inheritance tax. When Congress eliminated that credit for passings after December 31, 2004, Nevada’s pick-up system went dormant. While some states “decoupled” and enacted their own estate or inheritance taxes to preserve revenue, Nevada chose not to. The state did not then create a new estate or inheritance tax to replace it. So, there was no inheritance tax in Nevada before that and none since.
No Inheritance Tax in Nevada
Even without an tax in Nevada, beneficiaries can still encounter taxes from other states. If you inherit property located in a state that imposes an inheritance tax (say, Nebraska real estate), that state’s rules may apply—regardless of your residency. Understanding where the asset sits can matter as much as where you live.
To sum up, there’s no tax because the state never adopted one. Also, it declined to add a replacement when the old federal pick-up framework ended in 2005. That stance keeps Nevada among the states with the simplest picture for inheritances. That’s particularly true for estate planners creating trusts. Nevada has some of the most trust-friendly regulations in the country.
(Read More: Learn about trusts in Nevada.)