Family · Inheritance tax
Does Nebraska Have an Inheritance Tax?
Whether Nebraska taxes what an heir inherits, who has to pay, the rates by relationship, and who is exempt. Inheritance tax is separate from any estate tax. Cited to the statute.
How the inheritance tax works in Nebraska
Who pays, how the rate tracks the relationship to the person who died, and the heirs the law exempts.
Nebraska lawmakers have repeatedly proposed reducing or repealing the inheritance tax since the 2023 LB310 changes. Confirm the current rates and exemptions before relying on them.
| How the tax works | What it means |
|---|---|
| The heir pays, collected by the county | Nebraska is the only state where the inheritance tax is collected at the county level, by the county where the person lived or owned property. The heir pays, and the rate and exemption depend on relationship to the person who died. |
| Close relatives: 1% over $100,000 | Parents, grandparents, siblings, children, other lineal descendants, and their spouses pay nothing on the first $100,000 and 1% on the amount above that, under Sec. 77-2004 as amended by LB310 for deaths in 2023 and later. |
| Remote relatives and others | Remote relatives such as aunts, uncles, nieces, and nephews pay nothing on the first $40,000 and 11% above that (Sec. 77-2005). All other heirs pay nothing on the first $25,000 and 15% above that (Sec. 77-2006). |
| Who is exempt | What it means |
|---|---|
| Surviving spouse exempt | A surviving spouse pays no Nebraska inheritance tax. For deaths in 2023 and later this exemption is complete. |
| Beneficiaries under age 22 | Any person who is under 22 years old at the decedent’s death is fully exempt from the inheritance tax, regardless of which relationship class they fall in. |
| Per-heir exemption amounts | Each heir subtracts their class exemption before tax: $100,000 for close relatives, $40,000 for remote relatives, and $25,000 for others. Homestead and family allowances are also not taxed. |
What you can do right now
Concrete, neutral steps if you may owe or receive an inheritance in Nebraska. This is general information, not tax or legal advice.
- Identify each heir’s class
Sort each beneficiary into close relative (1% over $100,000), remote relative (11% over $40,000), or other (15% over $25,000). A spouse and anyone under 22 are exempt.
- File in the county probate court
Because the tax is county-based, the return and payment go through the county court where the estate is probated, not a central state office.
- Apply the current post-2023 exemptions
For deaths in 2023 and later, use the higher exemptions and lower rates set by LB310. Older guides may still show the previous $40,000 close-relative exemption and higher rates.
- Confirm the numbers locally
County treasurers and clerks handle the payment. Confirm the exemption and rate for each heir with the county or a probate attorney before paying.
Inheritance tax turns on the exact relationship and the value received. The state department of revenue publishes the forms and can point you to the current rate schedule.
→ Nebraska Department of Revenue: Inheritance TaxThis is general information, not tax or legal advice. Rates and exemptions change and turn on the relationship, so confirm your situation against the statute or with the state revenue office.
What people in Nebraska get wrong about inheritance tax
Nebraska levies an inheritance tax, and it is unusual in two ways: the heir pays it, and the county, not the state, collects it. The rate and exemption depend on the heir’s relationship to the person who died. Close relatives, meaning parents, grandparents, siblings, children, and their spouses, pay nothing on the first $100,000 and 1% above that. Remote relatives such as aunts, uncles, nieces, and nephews pay nothing on the first $40,000 and 11% above that. Everyone else pays nothing on the first $25,000 and 15% above that. A surviving spouse pays nothing, and any heir under age 22 is fully exempt. These figures reflect LB310, which for deaths on or after January 1, 2023 raised the exemptions and cut the top rates. Older guides may still show the previous numbers. Nebraska has no state estate tax, and the federal estate tax is a separate matter that only reaches very large estates. The return goes through the county probate court, not a state agency.
Common questions
Does Nebraska have an inheritance tax?
Yes. Nebraska levies an inheritance tax that the heir pays, collected at the county level. Close relatives pay 1% over a $100,000 exemption, remote relatives 11%, and unrelated heirs 15%.
Who is exempt from Nebraska inheritance tax?
A surviving spouse is fully exempt, and any heir under age 22 at the death is exempt. Close relatives also pay nothing on the first $100,000 they receive.
What are the current Nebraska inheritance tax rates?
For deaths in 2023 and later, LB310 set the rates at 1% for close relatives over $100,000, 11% for remote relatives over $40,000, and 15% for unrelated heirs over $25,000.
Where is Nebraska inheritance tax paid?
It is collected by the county, not the state. The return and payment go through the county court where the estate is probated. Nebraska has no state estate tax.
Is inheritance tax the same as estate tax in Nebraska?
No. The inheritance tax is paid by the heir based on relationship and collected by the county. An estate tax is paid by the estate. Nebraska has no state estate tax.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.