Nebraska Inheritance Tax Rates Going Down in 2023


Article Posted on 02/18/2022


Nebraska is currently one of six states that imposes an inheritance tax when a resident of the state passes away. For transfers to immediate family members, not including spouses, the inheritance tax rate is 1% on the value of the property that passes to each person over an exemption amount of $40,000 per person. This 1% rate applies to children, grandchildren, siblings, parents. There is no inheritance tax when assets pass to a spouse. If assets pass to more remote relatives (aunts, uncles, nieces, nephews), the inheritance tax rate is 13% on amounts over a $15,000 per person. For transfers to unrelated people, the inheritance tax rate is 18% on amounts over $10,000.

On February 17, 2022, Nebraska Governor Pete Ricketts signed a bill into law to reduce the inheritance tax for deaths occurring on or after January 1, 2023. Spouses will continue to be exempt from paying Nebraska inheritance taxes. The inheritance tax on transfers to immediate relatives will remain at 1%, but the exemption amount will be increased to $100,000 per person. The inheritance tax on transfers to remote relatives will be reduced from 13% to 11%, and the exemption amount will be increased to $40,000 per person. The inheritance tax on transfers to unrelated individuals will be reduced from 18% to 15% and the exemption amount will be increased to $25,000. Starting in 2023, no inheritance tax will be assessed to transfers of assets to individuals aged twenty-one (21) years or younger.

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