Nevada's tax advantage
Nevada is one of a handful of states that imposes no income tax — and one of the very few whose income tax prohibition is written directly into its constitution, not just its statutes. For families holding trust assets, that distinction matters enormously.
A constitutional tax foundation dating to statehood in 1864
Nevada's prohibition on a state income tax is not a matter of legislative preference — it is a feature of Article 10 of the Nevada Constitution. That means it cannot be repealed by a simple legislative vote; only a formal constitutional amendment can change it. Nevada's prohibition has been in place, unamended and untested, since the state's constitution was adopted at statehood in 1864. It was not added later in response to political pressure or a modern ballot campaign; it has simply never needed to be. When you establish a trust in Nevada, you do so from a tax foundation with the longest unbroken track record of any state in the country.
Beyond income tax
What about state income tax, estate tax, or gift tax?
Nevada imposes none of these. Some states impose estate taxes with top marginal rates of 20% or more; for Nevada the rate is 0%. For families transferring significant wealth across generations, the absence of income, estate, and gift taxes can compound investment returns meaningfully over time.
Can residents of states with high estate tax burdens set up a trust in Nevada?
Residency in Nevada is not required to benefit from the tax features enjoyed by Nevada trusts. Residents of states that impose meaningful estate or income taxes — such as California, New York, Massachusetts, or Washington — often look to Nevada, where a properly structured Nevada trust can preserve tax advantages legally and permanently.
State income tax rates
| State | Top rate |
|---|---|
| California | 13.3% |
| New York | 10.9% + a surcharge for NYC residents |
| New Jersey | 10.75% |
| Oregon | 9.9% |
| Massachusetts | 9% on ordinary income and long-term gains |
| Nevada | 0% on income, estate, and gift taxes |
Rates shown are top marginal state rates and are subject to change; figures should be verified against current state guidance before being relied upon for planning purposes.
Structures built on Nevada's tax foundation
Popular estate planning structures in Nevada
Nevada's favorable tax environment provides the foundation. A structure built upon this premise saves.
Related services
Other ways Crawford Trust serves your legacy
Nevada Asset Protection Trust
Protect your estate from non-exception creditors, including spousal divorces, in one of the shortest asset protection time periods of just 24 months. Corporate income tax? State income tax? Personal income tax? None of these will apply to your Nevada trust.
Dynasty Trusts
A Nevada Trust can extend your legacy for centuries. Protect your estate from non-exception creditors, future family disputes, and shoulder tax savings for your beneficiaries.
Nevada Foreign Grantor Trusts
International families enjoy unique advantages over peer countries with unparalleled privacy and tax privilege while benefiting from the same rule of law available to US residents.
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