Nebraska is one of a handful of states that requires inheritors to pay the county inheritance taxes on the amounts they inherit if over a certain amount.
However, far fewer people will be affected by this tax after 2023 and beyond thanks to LB 310 which significantly changed Nebraska inheritance law, as of 2023.
Here are the highlights:
As Nebraskans know, spouses are already exempt from inheritance tax.
Beginning in 2023,
- anyone under 22 years old is exempt from inheritance tax.
Beyond that, the amount of tax you pay is based on how close you were to the inheritor. All of those rules changed in 2023.
For “Close relatives” (i.e. brothers and sisters, children, grandchildren, great-grandchildren, parents, grandparents and great-grandparents, and their spouses. Adopted children are treated as natural children)
- the $40,000 exclusion is increased to $100,000
- the tax rate stays the same at 1%
More distant relatives (Aunts, uncles, nieces, nephews, their descendants and their spouses)
- $15,000 exclusion increased to $40,000 effective 2023
- Rate reduced from 13% to 11% effective 2023
Anyone else
- $10,000 exclusion increased to $25,000
- Rate reduced from 18% to 15% effective 2023
Sources:
- Nebraska Inheritance Tax Update – Nebraska Center for Agricultural Profitability
- Nebraska Legislature LB310
