Income Tax for Nebraska (2026)

How This Calculator Works in Nebraska

This calculator applies Nebraska's 2026 tax brackets and rates to estimate your state income tax liability. Enter your income and filing status to see your marginal rate, effective rate, and estimated tax owed.

Nebraska Overview

Nebraska levies a progressive income tax with a top rate of 5.84%, down from 6.84% and scheduled to reach 3.99% by 2027. The state is simultaneously phasing out its Social Security tax and offers an income tax credit for property taxes paid. Nebraska's aggressive rate reduction schedule aims to improve its competitiveness with neighboring South Dakota (no income tax) and Iowa (moving to 3.9% flat).

How Nebraska Compares

Nebraska's top income tax rate of 5.84% compares to Kansas at 5.7% and Iowa at 5.7%. The rate differences can meaningfully impact take-home pay for workers near state borders.

Nebraska's income tax rate of 5.84% compares to a national average of approximately 5.04%. This is above the national average.

Tips for Nebraska Residents

• 1Nebraska's top income tax rate is 5.84% (2024), reduced from 6.84% as part of phased tax reform, with a target of 3.99% by 2027.
• 2Nebraska is phasing out its Social Security tax — by 2025, Social Security benefits will be fully exempt from state income tax.
• 3The state offers a property tax credit that can be claimed on your income tax return, providing relief from Nebraska's above-average property taxes.
• 4Military retirement pay is fully exempt from Nebraska income tax.
• 5Nebraska uses federal AGI as the starting point for state returns, with Nebraska-specific adjustments.

Frequently Asked Questions