Platte Institute Advocates for Full Repeal of Inheritance Tax

OMAHA, NE — The Platte Institute is calling for the complete repeal of Nebraska's inheritance tax, an outdated and burdensome part of Nebraska's tax code that places unnecessary financial strain on grieving families and hinders economic growth across the state. Nebraska remains one of only five states—and the sole state west of the Mississippi River—that continues to impose this tax. 

“This tax is a relic of the past that must be fully eliminated,” said Jim Vokal, CEO of the Platte Institute. “It punishes families for building generational wealth and makes Nebraska less competitive. It's time to follow our neighbor states and end this tax once and for all.” 

Today, the Platte Institute is submitting neutral written testimony to the Revenue Committee on LB 468, introduced by Senator Rob Clements, which seeks to reduce the inheritance tax burden. While we appreciate Senator Clements' efforts to address this issue, reducing the tax is not enough as Nebraska will still stand out as an unnecessary outlier. 

There are two approaches hitting the Revenue Committee starting today. One reduces the inheritance tax burden, and the preferred approach—LR13CA—puts the issue in the hands of the voters to eliminate it completely. If the Legislature does not feel compelled to pull the plug on this destructive tax themselves, then let the voters make that decision. Regardless, it's time to modernize our tax system, align with the 21st-century economy, and remove barriers that drive people out of our state. 

Polling from the Platte Institute underscores strong public support for repeal, with nearly 80% of Nebraskans across party lines favoring the elimination of the inheritance tax. Despite its defenders, the tax accounts for an average of just 3% of county budgets, with some counties seeing little to no revenue from it in certain years. Many counties admit the funds often bolster reserves rather than support essential services directly. 

“If Nebraska families can tighten their belts amid rising costs, counties can adjust their budgets as well,” said Vokal. 

For more information about the Platte Institute’s efforts to repeal the inheritance tax or to schedule an interview with Platte Institute leadership, please contact Ryan Kopsa at (402) 366-4432 or via email at rkopsa@platteinstitute.org. 

The Platte Institute is a nonpartisan, nonprofit organization committed to advancing policies that remove barriers to growth and opportunity in Nebraska. For more insights and resources, visit PlatteInstitute.org.