Find Legal Topics > Tax Laws > Nebraska State Tax

Nebraska State Tax

Nebraska State Tax
Income taxes in Nebraska, when accounting for state and local taxes, total 9.8%, which is on par with the national average.  Nebraskans pay roughly $3,960 per capita in state and local taxes.  There are also property taxes that must be given consideration.  Tax returns are due on April 15.

Nebraska state sales/use tax – 5.5%, prescription drugs and food exempt, local sales tax can add 1.5%.  

Nebraska personal income tax
There are four tax brackets:
- 2.56% for $2,400
- 3.57% for $2,401 - $17,500
- 5.12% for $17,501 - $27,000
- 6.82% for $27,001+

These brackets are doubled for married couples filing jointly.  Nebraskans with a gross income of $167,100 or more will have to consult the Nebraska tax table for the additional tax rate schedule calculation.

Nebraska excise taxes

Taxes will be assessed on alcohol, tobacco, gasoline and other miscellaneous items, at the discretion of the state.

- $.64 per package of 20 cigarettes

- $3.75/gallon on spirits
- $.95 per gallon on table wine
- $.31 per gallon of beer

- $.277/gallon on gasoline (based on index and varies, quarterly)

Nebraska inheritance tax

Only federal laws are in effect.  No state estate tax has been collected on deaths after Jan 1, 2007.  There is an inheritance tax in Nebraska but it is collected on the local county level.

Nebraska payroll taxes

State Disability Insurance – none
State Unemployment Insurance – 0% to 8.66%, wage base is $9,000.  New employer contribution is 1.29%.  Construction employers use 5.4%.
State minimum wage is 7.25/hr

Nebraska state property tax

Both the state and local government collect taxes in Nebraska.  Real property is taxed, but intangible property is not subject to taxation.  There is a homestead exemption for property owners that make that property their primary residence and meet certain criteria for eligibility, such as the elderly, disabled or veterans.  

Property values are assessed by country assessors and the taxes are determined based on the value of the property.

Nebraska state corporate tax

The top corporate tax rate in Nebraska is 7.81% for corporations grossing over $100,000.  All other will pay a lower rate of 5.58%

Exemptions

There are personal deductions from taxation that total $5,700 for individuals and $11,400 for couples. 
Dependents receive a personal tax credit of $118. 
Military/VA disability and railroad retirement payments are not taxed and Social Security benefits will be taxed according to the same standard as the federal government.

Related Topics