Nebraska State Tax Calculator

Calculate your Nebraska state income tax and federal tax obligations. Nebraska uses a progressive tax system with rates ranging from 2.46% to 6.84%.

About Nebraska State Income Tax

Nebraska uses a progressive tax system with four tax brackets. The state income tax ranges from 2.46% at the lowest bracket to 6.84% at the highest bracket.

Nebraska Tax Brackets 2026

  • $0 - $3,700: 2.46%
  • $3,701 - $9,200: 3.50%
  • $9,201 - $32,100: 5.15%
  • Over $32,100: 6.84%

How Nebraska Tax is Calculated

Nebraska's progressive tax system works as follows:

  1. Income is divided into four tax brackets
  2. Each bracket is taxed at its corresponding rate
  3. Only income within a specific bracket is taxed at that rate
  4. Standard deduction reduces taxable income

Nebraska Tax Features

  • Progressive System: Lower-income earners pay lower rates
  • Moderate Top Rate: 6.84% is reasonable compared to many states
  • Tax Credits: Various credits available for property taxes and dependents
  • Affordable Living: Combined with moderate taxes makes NE affordable

Frequently Asked Questions

What is Nebraska's income tax rate?

Nebraska has progressive tax rates from 2.46% to 6.84%. The specific rate you pay depends on your income level and which bracket your income falls into.

Does Nebraska tax retirement income?

Nebraska does not tax Social Security benefits. Retirement income from pensions and retirement accounts is generally taxed as ordinary income.

Does Nebraska tax Social Security?

No, Nebraska does not tax Social Security retirement benefits, making it relatively retirement-friendly.

How does Nebraska compare to neighboring states?

Nebraska (6.84%) is competitive: Kansas (5.7%), Colorado (4.55%), Wyoming (0%), South Dakota (0%), Iowa (5.7%), and Missouri (4.95%). Nebraska is middle-of-the-road among its neighbors.

Nebraska vs. Neighboring States

Tax comparison with surrounding states:

  • Wyoming: No state income tax
  • South Dakota: No state income tax
  • Kansas: Progressive up to 5.7%
  • Colorado: Flat 4.55%
  • Iowa: Progressive up to 5.7%
  • Missouri: Progressive up to 4.95%

Tips for Nebraska Taxpayers

  • Take advantage of the lower rates on lower income brackets
  • Social Security is not taxed - good for retirees
  • Explore property tax credits if eligible
  • Nebraska's moderate taxes and low cost of living provide good value
  • Consider Nebraska for relocation to save on taxes compared to coastal states