Nebraska State Taxes
Quick Tax Facts
Income Tax: 2.46% – 6.64%
State Sales Tax: 5.5%
Median Property Tax: $2,164
Overview
If you’re interested in escaping the hustle and bustle of big-city life, Nebraska may be the state for you. The state is full of wide open spaces and small towns. The downside of living there is that it’s not very tax-friendly. The state has some of the highest property tax rates in the country. Income taxes are also above average for middle-class families. Retirees do not fare well, either. The state currently taxes most retirement income, including Social Security (until 2025).
Nebraska Income Tax
Nebraska uses a graduated tax rate structure that ranges between 2.46% and 6.64%.
| 2023 Nebraska Income Tax Rates – Single or Married Filing Separately |
|---|
| Taxable Income | Tax Rate |
|---|---|
| $0 – $3,700 | 2.46% |
| $3,701 – $22,170 | $91.02 plus 3.51% of income over $3,700 |
| $22,171 – $35,730 | $739.32 plus 5.01% of income over $22,170 |
| Over $35,730 | $1,418.68 plus 6.64% of income over $35,730 |
| 2023 Nebraska Income Tax Rates – Married Filing Jointly or Surviving Spouse |
|---|
| Taxable Income | Tax Rate |
|---|---|
| $0 – $7,390 | 2.46% |
| $7,391 – $44,350 | $181.79 plus 3.51% of income over $7,390 |
| $44,351 – $71,460 | $1,479.09 plus 5.01% of income over $44,350 |
| Over $71,460 | $2,837.30 plus 6.64% of income over $71,460 |
| 2023 Nebraska Income Tax Rates – Head of Household |
|---|
| Taxable Income | Tax Rate |
|---|---|
| $0 – $6,900 | 2.46% |
| $6,901 – $35,480 | $169.74 plus 3.51% of income over $6,900 |
| $35,481 – $52,980 | $1,172.90 plus 5.01% of income over $35,480 |
| Over $52,980 | $2,049.65 plus 6.64% of income over $52,980 |
Nebraska’s top tax rate will decrease each year until reaching 3.99% for the 2027 tax year.
- 5.84% (2024)
- 5.20% (2025)
- 4.55% (2026)
- 3.99% (2027)
Who Must File?
Full-year Nebraska residents who are required to file a federal income tax return must also file a state return (1040N). You must also file a Nebraska income tax return if you have $5,000 or more of net Nebraska adjustments to your federal adjusted gross income (AGI). This includes non-Nebraska state and local bond interest exempt from federal tax.
Partial-year and non-residents must file a Nebraska income tax return if they have income derived from or connected with state sources.
Nebraska Sales Tax
Nebraska’s state sales and use tax rate is 5.5%. Local governments (city and county) can levy an additional sales tax rate of .05% to 2%, making the top combined sales tax rate 7.5%.
Nebraska Property Taxes
Nebraska has some of the highest property tax rates in the United States. On average, residents pay 1.75% of their property value.
The median property tax paid in Nebraska is $2,164 (based on a home value of $123,300). Sarpy County has the highest property tax at an average of $3,281. The lowest amount is $800 in Grant County.
| Highest | $3281 |
|---|---|
| Median | $2164 |
| Lowest | $800 |
Yearly Cost Per Resident
Nebraska Tax Holidays
There are no tax holidays scheduled in Nebraska at this time.
Nebraska Tax Resources
If you need assistance preparing your Nebraska state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Nebraska Department of Revenue website for additional resources.
- Make a Payment
- Where’s My Refund?
- File a Return
- Customer Service: 402-471-5729
