Nebraska’s income tax rate is based on your filing status and income brackets. You can find your tax rate and brackets. Nebraska has four income tax brackets, each ranging from 2.46% to 6.84% of your taxable income. The rates are indexed for inflation and are updated annually to reflect the cost of living in the state. In addition to state taxes, residents also pay property taxes to their local government. Nebraska’s median property tax rate is the ninth highest in the country.
For taxpayers who are looking for a break, the State of Nebraska has several tax credits and deductions that can reduce your tax bill or get you a bigger refund. The most notable is the State Tax Deduction for Contributions to a College Savings Plan, which can remove up to $10,000 from your federal adjusted gross income (AGI) per year ($5,000 if you’re married, filing separately).
The Nebraska state tax rate is not as high as some other states, but it is still a bit steep for many working residents. This is especially true for retirees, whose Social Security benefits are currently taxed at an above-average rate.
How to Calculate Nebraska Income Tax?
Nebraska has a variety of taxes that affect both individuals and businesses. Some of these taxes are based on the amount of income you earn, while others are based on the type of property you own. The first step in calculating your Nebraska tax is to find out which income bracket you fall into. The state offers a number of standard deductions and exemptions, which can help you lower your overall tax bill. You may also be able to deduct certain expenses, such as child care or home health care costs.
You can also use a Nebraska tax calculator to calculate your personal income tax. This is a great way to ensure you’re paying the lowest possible taxes. Your Nebraska tax rate depends on your income and where you live in the state. It’s important to understand your tax rate so you can avoid being surprised with a large bill at the end of the year.
Nebraska Income Tax Brackets
Nebraska has four income tax brackets, each ranging from 2.46% to 6.84% of your taxable income. The rates are indexed for inflation and are updated annually to reflect the cost of living in the state.
Single Filers
| Income | Rate |
| $0 – $3,340 | 2.46% |
| $3,341 – $20,590 | 3.51% |
| $20,591 – $33,180 | 5.01% |
| $33,181+ | 6.84% |
Married Filing Jointly
| Income | Rate |
| $0 – $6,860 | 2.46% |
| $6,861 – $41,190 | 3.51% |
| $41,191 – $66,360 | 5.01% |
| $66,361+ | 6.84% |
Head of Household
| Income | Rate |
| $0 – $6,410 | 2.46% |
| $6,411 – $32,950 | 3.51% |
| $32,951 – $49,200 | 5.01% |
| $49,201+ | 6.84% |