Nebraska Inheritance Tax: Rates & Who Pays

Quick answer: 1% for immediate family over $100,000, 11% for remote relatives over $40,000, 15% for everyone else over $25,000 — and spouses plus anyone under 22 pay nothing regardless. Run your own numbers in the Nebraska inheritance tax calculator.

Who exactly is an "immediate relative"

Confirmed current, straight from the statute: a father, mother, grandfather, grandmother, brother, sister, son, daughter, or legally adopted child; any lineal descendant, including one legally adopted; any person to whom the deceased for not less than ten years prior to death stood in the acknowledged relation of a parent, and that person's lineal descendants; and the spouse or surviving spouse of any of these people.

The "acknowledged parent" test has real case law behind it

Nebraska courts have repeatedly weighed whether a decedent stood in the "acknowledged relation of a parent" to someone who wasn't a blood relative — considering whether the child was received into the home, whether the decedent took on real financial responsibility (not just occasional gifts), exercise of parental authority and discipline, and whether there's written documentation showing the decedent intended to act as a parent. No single factor is required on its own.

A former spouse's family still counts

Nebraska law extends the immediate-relative tax treatment to the relatives of a former spouse to whom the decedent was married at the time that spouse died — meaning a blended family's favorable rate doesn't automatically disappear just because a marriage ended before the decedent's own death.

What actually changed in the 2023 reform

Immediate relatives' exemption rose from $40,000 to $100,000, with the 1% rate unchanged. Remote relatives' exemption rose from $15,000 to $40,000, while the rate fell from 13% to 11%. Everyone else's exemption rose from $10,000 to $25,000, while the rate fell from 18% to 15%.

Facing probate in Nebraska?

A local probate attorney can review your estate — many offer a free consultation.

Talk to a Nebraska attorney

See Nebraska Inheritance Tax Exemptions for the asset-specific carve-outs that apply on top of these class-based rates.

Rates & who pays — frequently asked questions

Who exactly counts as an immediate relative in Nebraska?

A parent, grandparent, sibling, child (including legally adopted children), any lineal descendant, anyone who stood in the acknowledged relation of a parent for at least ten years before death, and the spouse of any of these people.

What if the acknowledged parent-child relationship is disputed?

Nebraska courts weigh factors including whether the child was received into the home, whether the decedent assumed responsibility for support beyond occasional gifts, exercise of parental authority, and written documentation of the decedent's intent to act as a parent.

Does a former spouse's family still get favorable treatment?

Yes — Nebraska extends the same tax treatment to the relatives of a former spouse to whom the decedent was married at the time that spouse died, even though the marriage itself had already ended.

What changed under the 2023 reform?

Immediate relatives' exemption rose from $40,000 to $100,000 (rate unchanged at 1%); remote relatives' exemption rose from $15,000 to $40,000 with the rate falling from 13% to 11%; and everyone else's exemption rose from $10,000 to $25,000 with the rate falling from 18% to 15%.

This page provides general guidance only and is not legal or tax advice. Based on Neb. Rev. Stat. §77-2004, §77-2005, as amended by LB310 (2022). Confirm current figures with the county court or a licensed attorney before acting.