Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and Nebraska state tax rates. Always consult a qualified tax professional.
Nebraska income tax overview
Nebraska has been steadily reducing its top income tax rate as part of a multi-year tax relief package, bringing the top rate down to 5.20% for 2026 with further scheduled reductions toward 3.99% in upcoming years. The state's agricultural economy and relatively low cost of living have historically been offset by higher-than-average property taxes, and the income tax cuts are partly aimed at balancing that overall tax burden. Nebraska fully exempts Social Security benefits from state tax as of recent reform, a significant change from years when the state taxed Social Security like ordinary income. The state does not permit local income taxes, keeping the system relatively straightforward for residents working across different Nebraska municipalities.
2026 Nebraska income tax rates
Tax rate
Income range (single filer)
2.46%
$0 – $3,700
3.51%
$3,701 – $22,170
5.01%
$22,171 – $35,730
5.20%
Over $35,730
Worked example: $75,000 salary in Nebraska
A $75,000 salary in Nebraska results in approximately $3,470 in state income tax (effective ~4.6%), plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $53,212, or $2,047 bi-weekly.
Key facts: 5.20% top rate in 2026, declining toward 3.99% · Social Security fully exempt · High property taxes offset income tax cuts
Frequently asked questions — Nebraska income tax
Yes. Nebraska passed legislation to gradually reduce its top income tax rate over several years, from over 6.5% down toward a target of 3.99%, with the 2026 rate set at 5.20%.
No, as of recent tax reform Nebraska fully exempts Social Security benefits from state income tax for all residents, a change that took full effect in 2024.
Nebraska's heavy reliance on agricultural land and local school funding has historically driven property taxes above the national average. The income tax cuts are partly intended to offset this overall tax burden.
No. Nebraska cities and counties do not levy local income taxes.
Nebraska's declining 5.20% rate is currently higher than Iowa's new 3.9% flat rate but comparable to Kansas's 5.58% top rate, with Nebraska's trajectory pointing toward becoming more competitive over time.
Compare Nebraska to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.