What are the Nebraska state income tax rates for 2025 and 2026?

Nebraska uses seven progressive brackets in 2026 for single filers: 0% on the first $3,430; 2.26% on $3,431–$6,710; 3.22% on $6,711–$21,810; 4.21% on $21,811–$31,610; 4.35% on $31,611–$40,130; 4.48% on $40,131–$75,370; and 4.60% on income above $75,370. These rates represent significant reductions from 2022, when Nebraska's top rate was 6.84%. Nebraska has been cutting rates annually under LB 873 and LB 754.

What is Nebraska's standard deduction for 2026?

Nebraska's standard deduction is $8,800 for single filers, $17,600 for married filing jointly, $8,800 for married filing separately, and $13,200 for head of household in 2026. This is considerably larger than Kansas ($3,500 single) or Hawaii ($2,200 single) and provides meaningful income shielding. A single filer earning $70,000 has approximately $61,200 of Nebraska taxable income after the standard deduction.

How much annual income tax does a $90,000 Nebraska single filer owe?

A single filer earning $90,000 in Nebraska in 2026 owes approximately: $12,140 in federal income tax, $6,885 in FICA, and roughly $3,480 in Nebraska state tax (applying the seven brackets after $8,800 standard deduction to $81,200 of Nebraska taxable income). Total annual taxes: roughly $22,505, an effective total rate of about 25%.

How has Nebraska income tax changed in recent years?

Nebraska enacted major income tax reform in 2022 (LB 873) and 2023 (LB 754), scheduling annual rate reductions through the mid-2020s. The top marginal rate dropped from 6.84% in 2022 to 5.84% in 2023, 5.01% in 2024, and 4.60% in 2026. For a single filer earning $100,000, this represents roughly $2,200–$2,400 in annual state tax savings compared to 2022 levels.

Does Nebraska recognize 401(k) pre-tax contributions?

Yes. Nebraska fully recognizes traditional 401(k) and 403(b) pre-tax contributions — they reduce Nebraska taxable income exactly as they reduce federal taxable income. At the 4.48%–4.60% top Nebraska rate, a $23,500 401(k) contribution saves roughly $1,053–$1,081 in Nebraska state tax on top of federal savings.

How does Nebraska compare to Iowa and Kansas for income tax?

Nebraska (top rate 4.60%) is now broadly comparable to Iowa (flat 3.8%) and Kansas (5.2%–5.58%). For a $90,000 single filer: Nebraska state tax is roughly $3,480, Iowa is roughly $2,890, and Kansas is roughly $4,900. Nebraska's tax competitiveness has improved dramatically from 2022 when it had the highest top rate among the three.

How is the annual Nebraska income tax calculator different from the paycheck calculator?

This calculator estimates your full-year annual tax liability — federal plus Nebraska state combined for the whole year — useful for tax planning, comparing states, and estimating what you owe at filing. The paycheck calculator shows per-paycheck withholding and take-home pay by frequency. Use both for a complete view of your Nebraska tax burden.

Nebraska Income Tax Calculator 2025 & 2026

Estimates Nebraska state income tax (0%–4.6%, 7 brackets), federal income tax, and FICA for 2025 and 2026 — $8,800 standard deduction, $2,440 dependent exemption.

How to Use This Nebraska Income Tax Calculator

This Nebraska income tax calculator estimates your annual NE state and federal tax liability for 2025 and 2026. Enter your gross wages, filing status, and any deductions above. Nebraska applies seven progressive brackets from 0% to 4.60% after an $8,800 standard deduction for single filers. For per-paycheck withholding estimates, use the Nebraska paycheck calculator.

Nebraska's Multi-Year Income Tax Reform

Nebraska has been aggressively cutting its income tax rates under legislation passed in 2022 and 2023. The reforms scheduled annual top-rate reductions:

2022: Top rate 6.84%
2023: Top rate 5.84%
2024: Top rate 5.01%
2026: Top rate 4.60%

For a single filer earning $100,000, the top rate reduction from 6.84% to 4.60% represents roughly $2,240 in annual state tax savings compared to 2022 levels. Nebraska's seven brackets in 2026 range from 0% to 4.60%, with most of the income for a typical $60,000– $100,000 earner falling in the 4.35%–4.48% range.

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Step-by-Step Example — $90,000 Nebraska Single Filer (2026)

Full annual tax calculation for a single Nebraska resident earning $90,000:

Gross wages: $90,000
Federal standard deduction: −$16,100 → federal taxable income: $73,900
Federal income tax (10%–22% brackets): ≈ $12,140
FICA: $90,000 × 7.65% = $6,885
Nebraska standard deduction: −$8,800 → Nebraska taxable income: $81,200
Nebraska income tax (across 7 brackets): 0% × $3,430 + 2.26% × $3,280 + 3.22% × $15,100 + 4.21% × $9,800 + 4.35% × $8,520 + 4.48% × $35,240 + 4.60% × $5,830 = approximately $3,485
Total taxes: $12,140 + $6,885 + $3,485 = $22,510
Annual net income: $90,000 − $22,510 = $67,490

Nebraska Standard Deduction and Dependent Exemption

Nebraska's $8,800 standard deduction(single) is meaningfully larger than many neighboring states. Kansas allows only $3,500 (single) and Hawaii only $2,200. The higher Nebraska deduction means less of a worker's gross income is exposed to Nebraska brackets.

Nebraska also provides a $2,440 dependent exemption per qualifying dependent child. A family with two children deducts an additional $4,880 from Nebraska taxable income before applying brackets. Use the general income tax calculator to compare Nebraska against other states side by side.

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How to Reduce Your Nebraska Annual Tax Liability

Maximize traditional 401(k) contributions — the 2026 limit is $23,500 ($31,000 if age 50+). At 4.48%–4.60% Nebraska + 22% federal = 26.5% combined marginal rate, every $1,000 contributed saves approximately $265.
Contribute to an HSA — $4,300 (self-only) or $8,550 (family) in 2026. Reduces both federal and Nebraska taxable income.
Nebraska College Savings Plan (NEST 529) — contributions are deductible from Nebraska taxable income up to $10,000 (single) or $10,000 per beneficiary (MFJ) per year. At 4.6%, $10,000 saves $460 in Nebraska state tax.
Claim all dependent exemptions — $2,440 per qualifying dependent. Make sure your Nebraska withholding certificate reflects the correct number of dependents.
Review withholding annually— Nebraska rates have been declining each year. Update your withholding certificate with your employer each January to avoid over-withholding at the prior year's higher rate.

Nebraska Has No Local Income Tax

Nebraska levies no city or county income taxon wages. Omaha, Lincoln, Bellevue, and all other Nebraska municipalities do not impose municipal payroll taxes. This keeps Nebraska's effective state tax burden lower than states with layered local taxes — for example, an Omaha resident earning $90,000 owes roughly $3,485 in Nebraska state tax vs. an equivalent worker in Columbus, Ohio who owes ~$1,485 Ohio state tax plus $2,000 in Columbus municipal tax. Use the Nebraska paycheck calculator to see per-paycheck take-home across weekly, biweekly, and monthly pay frequencies.

Tax Disclaimer

This calculator provides estimates for informational purposes only. It is not tax advice. Nebraska state tax brackets, standard deduction amounts, and federal rules change each year. Results reflect 2025 and 2026 tax-year parameters. Consult a qualified tax professional or CPA for guidance on your specific situation.

Sources & References

IRS Publication 17: Your Federal Income Tax — Internal Revenue Service
Social Security Contribution and Benefit Base — Social Security Administration
Nebraska Circular EN — Income Tax Withholding on Wages — Nebraska Department of Revenue

Nebraska Income Tax Calculator