Nebraska inheritance tax in 2026
Nebraska's inheritance tax is determined by a county court and paid to the county, and children owe it above an exemption. Pick the relationship and the share to see what an heir pays.
- Class 1: close family
- 1 % above $100,000
- Class 2: aunts, nieces
- 11 % above $40,000
- Class 3: everyone else
- 15 % above $25,000
- Spouse, heirs under 22
- exempt
Nebraska inheritance tax for this heir
$2,000
Class 1: parents, grandparents, brothers and sisters, children, adopted children, descendants, a person the deceased raised as a parent for 10 years or more, and their spouses. 0.7 % of what is received.
| Received | $300,000 |
| Tax | $2,000 |
| Kept by the heir | $298,000 |
Tax on the share received from a resident. A spouse pays none in any of the five states.
| State | Class | Tax |
|---|---|---|
| Kentucky | Class A | $0 |
| Maryland | Exempt | $0 |
| Nebraska | Class 1 | $2,000 |
| New Jersey | Class A | $0 |
| Pennsylvania | Children, stepchildren, grandchildren and other descendants, parents, grandparents, and the spouse or surviving spouse of a child | $13,500 |
Compiled by Radif Partners · How we calculate · figures read on the state revenue department, the statute and irs.gov · not legal or tax advice
Nebraska taxes each beneficiary on the clear market value received, in three classes set by Revised Statutes 77-2004 to 77-2006. Class 1, parents, grandparents, brothers and sisters, children and other descendants and the spouses of all of them, pays 1 % on what exceeds $100,000. Class 2, uncles, aunts, nieces, nephews and their descendants and spouses, pays 11 % on what exceeds $40,000. Class 3, everyone else, friends and non-exempt institutions included, pays 15 % on what exceeds $25,000. A surviving spouse pays nothing, and neither does any beneficiary under 22 years of age. A daughter inheriting $300,000 owes $2,000, a nephew $28,600 and a friend $41,250. These amounts have applied since LB 310 raised the exemptions and lowered two of the rates for deaths on or after January 1, 2023. The tax is determined in a county court proceeding and paid to the county, not to the Department of Revenue. Nebraska has no estate tax.
Who falls in which class
The classes follow the statute, not the family tree as people describe it. Section 77-2004 covers the father, mother, grandparents, brothers and sisters, sons and daughters, adopted children, any lineal descendant, "any person to whom the deceased for not less than ten years prior to death stood in the acknowledged relation of a parent", and the spouse or surviving spouse of any of those persons. That last clause places a son-in-law or daughter-in-law in Class 1, at 1 %, and it lets a stepchild raised in the home for ten years or more be treated as a child. Section 77-2005 covers uncles, aunts, nieces and nephews related by blood or adoption, their descendants and their spouses. Section 77-2006 covers "all other cases".
| Class | Beneficiaries | Exempt amount | Rate on the excess |
|---|---|---|---|
| Spouse | Surviving spouse of the deceased | everything | none |
| 1 | Parents, grandparents, siblings, children, descendants, a person raised as a child for 10 years, and their spouses | $100,000 | 1 % |
| 2 | Uncles, aunts, nieces, nephews, their descendants and spouses | $40,000 | 11 % |
| 3 | Everyone else, including non-exempt institutions | $25,000 | 15 % |
Children are exempt in New Jersey, Kentucky and Maryland; Pennsylvania charges them a flat rate from the first dollar, and Nebraska only on what exceeds the Class 1 exemption. A short summary of Nebraska as "1 % or 15 %" leaves out Class 2, which is the class that matters for nieces and nephews: 11 % above $40,000.
The tax in dollars
Each class subtracts its exempt amount from the share and taxes the rest at one rate. A share at or below the exempt amount is not taxed at all.
| Share received | Class 1 (child) | Class 2 (nephew) | Class 3 (friend) |
|---|---|---|---|
| $30,000 | $0 | $0 | $750 |
| $60,000 | $0 | $2,200 | $5,250 |
| $120,000 | $200 | $8,800 | $14,250 |
| $300,000 | $2,000 | $28,600 | $41,250 |
| $750,000 | $6,500 | $78,100 | $108,750 |
Nebraska tax on one share
Nebraska inheritance tax for this heir
$17,600
| Received | $200,000 |
| Tax | $17,600 |
| Kept by the heir | $182,400 |
Two exemptions that apply to every class
Interests passing to the surviving spouse, by will or in any other manner, are not taxed. Any interest passing to a person under twenty-two years of age is not taxed either: the rule is written into each of the three sections, so a grandchild of 19 or a great-niece of 21 receives the share free of tax whatever the class. The homestead allowance, exempt property and the family maintenance allowance are also outside the tax under section 77-2004. The calculator applies the age rule to the "child aged 21 or younger" choice; for an older or younger heir of another relationship, the age decides.
What LB 310 changed, and what LB 838 changes
The Department of Revenue summarizes LB 310, operative July 21, 2022, in a table: for deaths on or after January 1, 2023 it raised the Class 1 exemption to $100,000 with the rate unchanged at 1 %, raised the Class 2 exemption to $40,000 and cut its rate to 11 %, and raised the Class 3 exemption to $25,000 and cut its rate to 15 % (Department of Revenue, 2022 legislative changes). Tables still showing lower exemptions apply to deaths in 2022 or earlier.
In 2026 the Department lists LB 838, section 25, operative July 18, 2026, as a clarification of the definition of Class 1 beneficiaries (Department of Revenue, 2026 legislative changes). The text of the clarification could not be read on the Legislature's site when this page was written, so the Class 1 list above is the statute as published before it. Families whose case turns on the edge of Class 1, a step-relative or a person raised by the deceased, are the ones the clarification may concern.
A county tax
Nebraska's inheritance tax is not filed with the state. The petitioner, usually the personal representative, but also a trustee, a person using an affidavit to transfer real estate without probate or the beneficiary of a transfer on death deed, asks the county court to determine the tax, and the tax is paid to the county where that order is entered. After the order, the petitioner files Form PCIT with the county treasurer, a report of the tax paid by class of beneficiary, which counties forward to the Department for its annual report of county inheritance taxes (Property Assessment Division). The form reminds the petitioner that the personal representative must pay the taxes owed from the estate in hand.
Nonresidents with Nebraska land
Farmland and houses in Nebraska owned by someone who lived elsewhere are a common case. Suppose a Colorado resident leaves Nebraska farmland worth $900,000 to a nephew: the Nebraska tax on that share is $94,600 under Class 2. The calculator applies the full class exemption to a nonresident's Nebraska property; the statutes read for this page do not set a proration, so treat the figure as an estimate and see property in another state for the other states' rules. Nebraska has no estate tax of its own, so the only other tax on a large estate is the federal one above $15,000,000. The other four states are compared on inheritance tax by state.