Who pays Nebraska inheritance tax?

The beneficiary pays, not the estate, and the tax is collected by the county where the property is located. The rate and exemption depend on each heir's relationship to the person who died, so different heirs can owe very different amounts.

What are the Nebraska inheritance tax rates?

After the 2023 reform, immediate relatives pay 1% above a $100,000 exemption, remote relatives pay 11% above $40,000, and unrelated beneficiaries pay 15% above $25,000. Surviving spouses are fully exempt.

Are spouses and children exempt?

Surviving spouses are completely exempt from Nebraska inheritance tax. Children and other immediate relatives are not fully exempt but enjoy a large $100,000 exemption and the lowest 1% rate, so modest inheritances often owe nothing.

Are young beneficiaries exempt?

Yes. Beneficiaries under the age of 22 are fully exempt from Nebraska inheritance tax under the 2023 reform. The calculator zeroes the tax when you check the under-22 option.

Is the exemption per heir or per estate?

The exemption applies per beneficiary, not to the whole estate. Each heir gets their own exemption against the value they personally receive, so splitting assets among more relatives can reduce the total tax.

Nebraska Inheritance Tax Calculator

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Nebraska is one of the few states that still levies an inheritance tax, and it is collected at the county level on each beneficiary. How much an heir owes depends entirely on their relationship to the person who died. This calculator estimates the tax by class.

How it works

Nebraska sorts heirs into classes, each with its own exemption and rate. The 2023 reform raised exemptions and lowered some rates:

Spouse:            fully exempt
Class 1 relatives: 1% above a $100,000 exemption
Class 2 relatives: 11% above a $40,000 exemption
Class 3 (others):  15% above a $25,000 exemption
Under age 22:      fully exempt

Class 1 covers children, parents, siblings, grandchildren and their descendants. Class 2 covers aunts, uncles, nieces, and nephews. The tax applies per beneficiary to the value each person receives, after subtracting that class’s exemption.

Example

A child inherits 250,000 dollars. As a Class 1 relative, the first 100,000 dollars is exempt, leaving 150,000 dollars taxed at 1 percent — about 1,500 dollars. An unrelated friend inheriting the same 250,000 dollars would pay 15 percent on the amount above 25,000 dollars, or roughly 33,750 dollars.

Notes

This is an estimate, not legal advice. Charitable and certain organizational transfers are exempt and are not modeled, and complex estates may involve valuation disputes and deductions. Confirm with the county court and revenue.nebraska.gov before relying on these figures.