Updated October 5, 2026. Quick answer: No. Nevada has no state income tax on individuals, and the Department of Taxation says the state “does not impose a state income tax on individuals”. No Nevada document read says anything specific about taxing trust income.
How Nevada treats trust income
| Item | What the documents say |
|---|---|
| Treatment | The Department of Taxation says Nevada “does not impose a state income tax on individuals”. The page does not mention trusts or estates. |
| Where the no-tax rule is written | Article 10, Section 1, subsection 9 of the Nevada Constitution says “No income tax shall be levied upon the wages or personal income” of natural persons. The section text does not mention trusts or estates. |
| Rate on trust income | No Nevada trust income tax rate appears in the documents read, so no trust rate schedule exists in them. |
| Distribution deduction | The documents read describe no state income tax return for trusts, so they state no distribution deduction. |
| Nonresident trusts | The documents read set no state income tax on any trust, resident or nonresident, and state no residency test for trusts. |
| Business income | The constitution leaves room for business taxes, saying “taxes may be levied upon the income or revenue of any business”. The Department of Taxation also describes a Commerce Tax for businesses whose gross revenue exceeds $4 million in a fiscal year. |
| Nevada trust statutes | Chapter 166 of the Nevada Revised Statutes may be referred to by the short title “Spendthrift Trust Act of Nevada”. The chapter text read concerns creditor and trust-formation rules and sets no state income tax on trusts. |
| Return to file | The Department of Taxation says residents living and working in Nevada do not need a state income tax return on earned income, and the documents read describe no Nevada income tax return for trusts. |
A $10,000 example
A trust with $10,000 of taxable income owes $0 of Nevada income tax on it. Federal tax on the trust’s income still applies.
A trust with ties to another state also has to check that state’s own rules, because each state sets its own test for taxing a trust.
What changes in 2026
The latest documents read print no 2026 change to how trust income is taxed.
Federal rules
The state’s treatment sits on top of the federal one. The federal brackets a trust faces are laid out in trust tax brackets versus individual brackets, and capital gains that a trust keeps are covered in capital gains stay in the trust. The IRS explains the federal return in the About Form 1041 page.
Related: how Nevada taxes retirement income, whether Nevada taxes pensions, what a living trust costs in Nevada, and federal trust tax brackets.
Find the right next step for your situation
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Answer againSources
- Nevada Constitution (Nevada Legislature): https://www.leg.state.nv.us/const/nvconst.html
- Income Tax in Nevada (Nevada Department of Taxation): https://tax.nv.gov/about-nevada-department-of-taxation/income-tax-in-nevada/
- Nevada Revised Statutes Chapter 166, Spendthrift Trusts (Nevada Legislature): https://www.leg.state.nv.us/nrs/nrs-166.html
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.