Nebraska groups beneficiaries into classes by their relationship to the decedent, each with its own exemption and rate. Fully exempt: surviving spouse, charitable, religious, educational, and governmental organizationsNeb. Rev. Stat. § 77-2001 et seq.Verified Sep 15, 2026View source. The rate climbs with distance from the decedent, up to 15%Neb. Rev. Stat. § 77-2001 et seq.Verified Sep 15, 2026View source for an unrelated beneficiary. The return is due 12 monthsNeb. Rev. Stat. § 77-2001 et seq.Verified Sep 15, 2026View source after death. The Nebraska inheritance tax guide walks through the classes.

No. The IRS does not treat inherited money, real estate or personal items as income, so a beneficiary in Nebraska does not report them on a federal return when received. Two exceptions: an inherited retirement account (a 401(k) or a traditional IRA) is taxed as ordinary income as it is withdrawn, and earnings after the date of death are taxable. Inherited property takes a stepped-up basis, its value on the date of death, for any later capital gain.

When someone dies, the cost basis of the property they leave is reset to its fair market value on the date of death26 USC § 1014Verified Sep 15, 2026View source under IRC § 1014. A later sale is taxed on the gain above that stepped-up basis, not above what the original owner paid, so the appreciation of the owner's lifetime is never taxed. The rule is federal and applies in Nebraska as in every state.

Nebraska intestacy law decides. Nebraska follows separate property rulesNeb. Rev. Stat. § 30-2302Verified Sep 10, 2026View source: the surviving spouse's share depends on whether children survive and whose children they are. The estate passes to the closest surviving relatives, in most cases the spouse and children first, then in order: Parents; Issue of parents; Grandparents and their issue; Next of kin; The stateNeb. Rev. Stat. § 30-2302Verified Sep 10, 2026View source.