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Julie Garber

Estate Taxes by State - Does Nevada Have an Estate Tax?

By December 5, 2009

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Does Nevada have an estate tax? The answer is no, currently Nevada does not collect a state estate tax, although things were different a few years ago before major changes took effect with regard to federal estate tax laws. Prior to January 1, 2005, Nevada, like many other states, collected a separate state estate tax, called a "pick up tax," that was actually equal to a portion of the overall federal estate tax bill.

On January 1, 2005, the pick up tax was officially phased out under the provisions of the Economic Growth and Tax Relief Reconciliation Act ("EGTRRA"). In response to these changes in federal law, 18 states and the District of Columbia chose to enact laws that allow the assessment of a state estate tax. But the Nevada legislature did nothing and as a result Nevada no longer collects a state estate tax.

One thing to keep in mind is that the pick up tax, and therefore the Nevada estate tax, is scheduled to come back in 2011 due to the sunset of EGTRRA. But no one really believes that Congress and President Obama will allow this to happen. In fact, on December 3 the U.S. House of Representatives voted to repeal the repeal of the federal estate tax, lock in the current $3.5 million estate tax exemption and 45% tax rate for 2010 and beyond, and permanently repeal the pick up tax. The federal estate tax debate now moves to the U.S. Senate.

January 24, 2011 at 4:46 pm
(1) jody says:

does Nevada currently have a state estate tax? thanks!

February 13, 2011 at 4:46 pm
(2) Julie Ann Garber, Esq. says:

Hi Jody, no, Nevada does not currently have a state estate tax:

State Estate Tax and Exemption Chart

Best regards,

Julie Ann Garber, Esq.
Your Guide to Wills & Estate Planning
email: wills.guide@about.com

April 18, 2012 at 7:59 pm
(3) Brenda says:

My husband and I are Canadian Citizens considering purchasing Real Estate in Nevada. Where can we find a comprehensive guide on the various taxes and other issues that Canadian purchases should be aware of before buying.

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