Flat-Fee Tax Preparation for Nebraska Residents

Nebraska is reducing its top income tax rate to 3.99% by 2027 — down from a higher graduated structure — as part of significant tax reform legislation

Nebraska taxes Social Security benefits for higher-income taxpayers, though the state has been phasing out this taxation as part of recent tax reform

NE does not impose a state estate tax, but Nebraska imposes an inheritance tax — one of only six states with an inheritance tax — on assets passing to non-exempt beneficiaries

Nebraska's inheritance tax varies by relationship: immediate relatives face a lower rate, more distant relatives face higher rates, and non-relatives face the highest rates

The NE pass-through entity tax election is available for eligible S-corps and partnerships for SALT cap planning

Nebraska's real estate transfer tax is $2.25 per $1,000 of value — moderate by national standards

Nebraska has significant agricultural property — farmland sales and estate planning for farm families are major tax planning considerations

NE conforms to federal depreciation including bonus depreciation, benefiting capital-asset-heavy businesses

Nebraska Real Estate Tax

Nebraska's real estate market includes Omaha metro residential and commercial investment, and significant agricultural farmland holdings. The inheritance tax is an important consideration for non-direct-heir estate planning involving NE real property. Federal depreciation conformity benefits real estate investors with cost segregation studies.

Nebraska Business Tax

Nebraska businesses benefit from the ongoing income tax rate reductions, federal depreciation conformity, and no state estate tax. The inheritance tax on non-direct heirs creates succession planning considerations for business owners who want to transfer interests to non-family employees or partners. The NE PTET election provides SALT cap relief.

Do I need to file a Nebraska state tax return?

If you are a Nebraska resident or earned NE-source income above the filing threshold, you must file a NE Form 1040N. Nebraska's income tax rates are declining — consult the NE Department of Revenue for current brackets and rates as the state transitions toward its 3.99% top rate.

Does Nebraska have an inheritance tax?

Yes. Nebraska is one of the few states that still imposes an inheritance tax on assets received by non-exempt beneficiaries. Immediate relatives (spouses, parents, grandparents, children, siblings) receive favorable treatment or exemption. More distant relatives and non-relatives face rates up to 18% on the value received. Unlike estate taxes, inheritance taxes are based on the relationship of the recipient to the deceased, not the total size of the estate.

What makes Nebraska taxes unique?

Nebraska's combination of a declining income tax rate, a surviving inheritance tax (rare nationally), and significant agricultural land wealth creates a distinctive planning environment. Farm families with multi-generational land holdings require careful succession planning to manage the inheritance tax exposure. The phase-out of Social Security taxation under recent reform makes NE increasingly favorable for retirees.

How is farmland taxed when it's sold in Nebraska?

When Nebraska farmland is sold, the gain is taxed as capital gain on the federal return (long-term rates if held over one year) and at NE income tax rates on the state return. A 1031 exchange can defer both federal and NE tax. For farms passing through an estate, the step-up in basis at death can eliminate embedded gain on long-held farmland — making the choice between lifetime sale and estate transfer a critical planning decision.