Platte Institute Called for Nebraska Inheritance Tax Repeal
A new policy report argues that the state's unique local inheritance tax causes economic harm and revenue volatility.
Updated on Sept. 30, 2026 in Financial Planning
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Should Nebraska local governments repeal their inheritance taxes to reduce burdens on family businesses?
The Platte Institute has issued a report calling for the repeal of Nebraska's inheritance tax, citing significant economic strain on family farms and small businesses. Nebraska remains the only state in the country where inheritance taxes are imposed at the local level.
Why it matters
The report highlights extreme revenue instability for local governments, noting that the tax can force beneficiaries to sell illiquid assets or borrow funds to pay liabilities. Supporters of repeal point to this volatility as a primary driver for shifting tax policy.
A 2025 poll shows 65% of Nebraskans support repealing the tax, which typically accounts for 3% to 4% of county budgets. Revenue volatility is exemplified by Polk County, which collected $845,000 in FY 2024, $3 million in FY 2025, and $584,000 in FY 2026.
The players
Platte Institute
This is a Nebraska-based non-profit research organization that advocates for tax reform and economic policy changes.
The details
The tax, applied to assets transferred from a deceased individual, is currently levied in only five U.S. states. The Platte Institute argues that the unpredictable nature of these collections complicates budgeting for local authorities across the state.
Timeline
FY 2024 saw Polk County collect $845,000 in inheritance tax revenue.
FY 2025 collections in Polk County rose to nearly $3 million.
A poll conducted in 2025 measured public support for tax repeal.
FY 2026 tax collections for Polk County totaled $584,000.
The policy report was released on September 30, 2026.
Market Dynamics
The push to eliminate the Nebraska inheritance tax marks a significant departure from current state fiscal policy. This effort follows a pattern set by other states that have moved to phase out death and inheritance taxes to retain local wealth.
For residents inheriting assets, a potential repeal would remove the requirement to sell illiquid property or take out loans to cover state tax liabilities. This change would shift the burden of local budget funding away from estates and toward other county revenue sources.
The takeaway
The debate over inheritance taxes highlights the tension between local budget needs and the financial burden placed on families inheriting property. Residents should review their estate plans to account for existing tax liabilities while monitoring potential legislative changes.
Further reading
Learn more about local tax implications in our guide to Financial Planning.
More information
Read the full policy report on the organization's official website.
Source note: This article includes information reported by North Platte Post.
Live Poll
Should Nebraska local governments repeal their inheritance taxes to reduce burdens on family businesses?
