New Platte Institute Report Calls for Repeal of Nebraska’s Inheritance Tax 

OMAHA, NE — The Platte Institute today released a new policy report calling for the repeal of Nebraska’s inheritance tax, highlighting the tax’s impact on families, farms, and businesses as well as its unreliability as a source of revenue for Nebraska counties. 

The new report, It’s Time to Retire Nebraska’s Inheritance Tax, authored by Platte Institute Senior Tax Advisor Jared Walczak, examines Nebraska’s increasingly unusual approach to taxing inheritances. Nebraska is one of only five states with an inheritance tax and the only state where the tax is imposed at the local level. 

One of the report’s most striking findings is the dramatic year-to-year volatility in inheritance tax collections. Over the past two years, 73 of Nebraska’s 93 counties experienced at least one year-over-year swing in inheritance tax revenue of 50% or more. 

In Polk County, collections increased from $845,000 in FY 2024 to nearly $3 million in FY 2025 before falling to $584,000 in FY 2026. Greeley County collected $3.63 million in FY 2024, followed by just $427,000 in FY 2025 and $304,000 in FY 2026. 

“Nebraska has made significant progress on tax reform in recent years, and repealing the inheritance tax would give elected officials an opportunity to cement their legacies as tax reform champions,” said Platte Institute CEO Jim Vokal. “It would also make Nebraska a better place to retire, build a family business, and pass what you’ve built on to the next generation.” 

The report also highlights the burden the inheritance tax can place on family farms and small businesses. Unlike beneficiaries who inherit cash or publicly traded assets, those inheriting an illiquid business or farm may need to borrow money, sell other assets, or sell an interest in the enterprise to satisfy the tax liability. 

Despite typically accounting for only 3% to 4% of county budgets, the report concludes that Nebraska’s inheritance tax creates outsized economic harm for the revenue it generates. A 2025 Platte Institute-commissioned poll found 65% of Nebraskans supported repealing the tax. 
The full report, It’s Time to Retire Nebraska’s Inheritance Tax, is available at www.PlatteInstitute.org.