Qualifying for Nebraska Documentary Stamp Tax Exemptions

The transfer of real estate often involves navigating various taxes, and Nebraska is no exception. The state imposes a Documentary Stamp Tax on the sale or transfer of real property. This tax is calculated based on the value of the property being conveyed. However, the law recognizes that not all transfers are equivalent to a typical sale between a buyer and a seller, so a number of specific exemptions are available that allow property to be transferred without incurring this tax liability.

Identifying Qualifying Exemptions

The Nebraska Documentary Stamp Tax is levied at a rate of $2.25 for each $1,000 of value, or fraction thereof, for the real property being transferred. This rate is scheduled to increase to $2.32 per $1,000 beginning September 3, 2025. State law outlines the situations where this tax does not apply. All property transfers are presumed to be taxable unless they clearly fit into one of these statutory exemptions, and the burden is on the person filing the deed to prove that the transfer qualifies.

A common exemption applies to transfers between certain close family members. Deeds that move property between a husband and wife, or between a parent and their child, are exempt as long as no actual consideration, or payment, is exchanged. This exemption can also extend to include the child’s spouse as a co-owner.

Transfers involving governmental bodies also qualify for an exemption. Any deed where the United States, the State of Nebraska, or any of their agencies or political subdivisions is the grantor or the grantee is not subject to the tax. A deed that, without additional payment, confirms, corrects, modifies, or supplements a previously recorded deed is not taxed. Deeds that are executed as part of securing or releasing a debt, such as a mortgage or a deed of trust, are also exempt from the stamp tax.

Another category of exemptions relates to trusts. A deed transferring property into a grantor’s revocable trust without any consideration is exempt. Similarly, a transfer of property into any trust is exempt if a direct transfer from the grantor to the trust’s beneficiaries would have been exempt. To claim this, the register of deeds must be given a signed statement certifying that the transfer meets the exemption criteria and that supporting evidence is available for inspection by the Nebraska Department of Revenue.

Transfers that occur as a result of a person’s death are exempt. This includes deeds of distribution from a personal representative of an estate to the heirs or devisees of the deceased. Likewise, a transfer on death deed, which automatically transfers property to a beneficiary upon the owner’s death, is not a taxable event for documentary stamp tax purposes.

Required Documentation for Claiming an Exemption

The required form for any real estate transfer, taxable or exempt, is the Nebraska Real Estate Transfer Statement, Form 521. This form must be accurately filled out and submitted alongside the deed at the time of recording. A deed will not be accepted by the Register of Deeds without a properly completed Form 521.

The official and most current version of Form 521 can be obtained directly from the Nebraska Department of Revenue’s website. The form is available as a fillable PDF, which can be completed electronically and then printed for signing.

When completing Form 521 for an exempt transaction, several fields require specific attention. The initial sections of the form ask for basic information, including the county, the names and addresses of the grantor and grantee, and a full legal description of the property. This legal description must be transcribed exactly as it appears on the deed being filed. You must also identify the property type, such as single-family residential, agricultural, or commercial.

The part of the form for claiming an exemption is Part 1, which details the consideration for the transfer. For an exempt transaction, the “Total Consideration Paid” will often be $0. In the section that calculates the tax, you will enter the corresponding exemption number from the list provided in the form’s instructions or on the Department of Revenue’s website. This communicates to the Register of Deeds that no tax is due and provides the specific legal reason for the exemption. The grantee or their authorized representative must sign and date the form, declaring under penalty of law that the information provided is true and correct.

Filing the Exemption Claim

The completed Form 521 and the original, signed deed must be submitted to the Register of Deeds office in the county where the property is located. The staff will review the documents for completeness, verify that Form 521 is filled out correctly, and check that the deed meets all recording requirements, such as proper notarization. If an exemption is claimed, the clerk will note the exemption number provided on Form 521.

After the review is complete, the Register of Deeds will record the deed in the official county records, legally transferring the title. The Form 521 is retained for state and county assessment purposes. The filer will receive confirmation that the deed has been recorded, and the original document is typically mailed back to the designated recipient.