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.
- Understanding Death, Estate and Inheritance Taxes
- What is the Pick Up Tax?
- State Estate Tax Chart
- What is the Future of the Federal Estate Tax?
- Sept. 17, 2009 - One Year Patch Likely to End Federal Estate Tax Repeal in 2010
- Oct. 22, 2009 - Estate Tax Repeal - Update on Predictions About the New Federal Estate Tax Law
- Dec. 4, 2009 - House Passes H.R. 4154 - Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009