Nebraska is only one of five states that still imposes an inheritance tax. The tax is calculated on a worksheet, approved by the county attorney and paid to the county where the deceased had property, which may involve multiple counties. It is paid by the heirs, not the Estate. Surviving spouses are exempt from the payment of inheritance tax and others fall into three categories. Class I relatives (immediate family) pay 1% of what they inherit over an exemption of $40,000.00, Class II relatives (related but not immediate family) pay 13% of what they inherit over $15,000.00, and Class III people would pay 18% over what they inherited over the exemption amount of $10,000.00. An inheritance tax proceeding is often done with the probate proceeding but oftentimes is done separately if probate is not necessary.