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Nebraska is one of a handful of states that collects an inheritance tax. If you are a Nebraska resident, or if you own real estate or other tangible property in Nebraska, the people who inherit your property might have to pay a tax on the amount that they inherit.
The general rule is that any assets that are gifted (or otherwise transferred for less than full fair market value) by the decedent within three years of the decedent's date of death are subject to Nebraska inheritance tax.
This includes property, bank accounts, investments, shares, ISAs, antiques, jewellery, personal chattels, vehicles, life insurance (not held in trust) and gifts (made in the past 7 years). The asset value is determined to be the value at the date of death.
2021 Standard Deduction Amounts Filing Status2021 Standard DeductionSingle; Married Filing Separately$12,550Married Filing Jointly$25,100Head of Household$18,800
Nebraska standard deductions and exemptions Deduction amounts are: $6,900 for single taxpayers and those married filing separately. $10,100 for heads of household. $13,800 for taxpayers married filing jointly and qualifying widow(er) with dependent children.
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Nebraska Inheritance and Gift Tax If you leave money to your spouse, there is no inheritance tax. For other relationships, the following rates apply: Class 1: Parents, siblings, children, grandparents and any spouses/descendants of these relatives. These individuals pay 1% on any value over $40,000.
001.01 Nebraska inheritance tax applies to bequests, devises, or transfers of property or any other interest in trust or otherwise having characteristics of annuities, life estates, terms for years, remainders, or reversionary interests.
Nebraska Tax Rates, Collections, and Burdens Nebraska has a graduated individual income tax, with rates ranging from 2.46 percent to 6.84 percent. Nebraska also has a 5.58 percent to 7.50 percent corporate income tax rate.
001.01 Nebraska inheritance tax applies to bequests, devises, or transfers of property or any other interest in trust or otherwise having characteristics of annuities, life estates, terms for years, remainders, or reversionary interests.
What do these folks pay on inheritances? Currently the first $10,000 of the inheritance is not taxed. Anything above $10,000 in value is subject to a 18% inheritance tax.

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