Nebraska Income Tax Calculator 2026
See your Nebraska state tax, effective rate, and take-home pay in 60 seconds.
Estimate only. Uses 2026 federal figures, Nebraskastate figures (see sources below), and a standard-deduction federal calculation. Filing status “Head of household” uses the single column for Nebraska. Your actual tax depends on credits, additional income, and adjustments.
Worked example: A single filer earning $85,000 in Nebraska
Start with $85,000 of wages. running it up Nebraska's brackets produces about $4,296 in state income tax — an effective state rate near 5.1%, with a 5.84% marginal rate. Federal income tax and FICA are calculated separately and shown in the calculator above.
Assumes a single filer taking the standard treatment. Figures are educational estimates.
How Nebraska taxes income
Nebraska uses a graduated income tax: your income is taxed in slices, with each slice taxed at a higher rate as you move up the brackets from 2.46% to 5.84%.
Nebraska generally starts from your federal income, applies state-specific adjustments and deductions, and then runs the result up the brackets. Credits and exemptions can change the final number — confirm the current details with the Nebraska Department of Revenue.
2026 rate structure
| Rate | Single — taxable income up to | MFJ — taxable income up to |
|---|---|---|
| 2.46% | $3,700 | $7,400 |
| 3.51% | $22,170 | $44,340 |
| 5.01% | $35,730 | $71,460 |
| 5.84% | and above | and above |
Retirement income & Social Security
Nebraska generally taxes retirement income such as 401(k), IRA, and pension distributions, though it may offer exclusions, deductions, or credits for certain pension or retirement income and for older taxpayers. Confirm the current exclusions with the Nebraska Department of Revenue.
Local taxes & reciprocity
Nebraska has no local or city income tax — only the state income tax applies to wages.
Reciprocity: Nebraska has no income tax reciprocity agreements. If you work across state lines, you generally file a non-resident return where you work and claim a credit to avoid double taxation.
Notable deductions, credits & other taxes
Deductions & credits
- Nebraska standard deduction and personal exemptions (verify current amounts with the Nebraska Department of Revenue)
- Credit for income taxes paid to other states (for residents with out-of-state income)
- State versions of common credits — earned income, child/dependent care, and education credits — where offered
Capital gains: Nebraska has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at Nebraska's graduated rates.
Property tax: Property taxes in Nebraska are assessed and collected locally, so effective rates vary widely by county and municipality. Check your county assessor or the Nebraska Department of Revenue for local rates.
Nebraska vs. neighboring states
Compared with its neighbors — Colorado, Iowa, Kansas, Missouri — Nebraska's graduated rates up to 5.84% sit within the regional range. Effective rates depend heavily on income level, deductions, and local taxes. Note that South Dakota and Wyoming have no income tax at all, which can matter for people living or working near the border.
Nebraska state tax FAQs
What is the Nebraska state income tax rate for 2026?
Nebraska uses graduated brackets ranging from 2.46% to 5.84%, with higher rates applying only to income above each threshold.
Does Nebraska tax retirement income or Social Security?
Social Security benefits are exempt from Nebraska income tax. For other retirement income, Nebraska generally taxes 401(k), IRA, and pension distributions, though exclusions may apply. Verify with the Nebraska Department of Revenue.
How are capital gains taxed in Nebraska?
Nebraska has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at Nebraska's graduated rates.
Is there a local or city income tax in Nebraska?
Nebraska has no local or city income tax — only the state income tax applies to wages.
Does Nebraska have tax reciprocity with neighboring states?
Nebraska has no income tax reciprocity agreements. If you work across state lines, you generally file a non-resident return where you work and claim a credit to avoid being taxed twice.
Sources & verification
Last verified June 12, 2026.