Nebraska's top rate dropped from 5.2% to 4.55% on 1 January 2026, with a further cut to 3.99% scheduled for 2027 — one of the steeper single-year reductions in the country.
| Gross pay | — |
| Federal income tax | — |
| Social Security6.2% up to $184,500 | — |
| Medicare1.45%, no cap | — |
| State income tax | — |
| 401(k) contribution | — |
| Health and HSA | — |
Useful if you are comparing a job that pays monthly against one that pays every two weeks, or working out what a raise is worth per paycheck.
| Pay schedule | Gross | Take-home |
|---|
Nebraska's three brackets are 2.46%, 3.51% and 4.55%. The top rate has fallen from 6.84% in recent years and is legislated to reach 3.99% in 2027, at which point the phase-down concludes.
The top bracket begins at $24,760 of taxable income for a single filer, so most full-time workers are in it. The two lower bands cover only the first $24,760 and are worth a fixed saving of roughly $500 regardless of income — meaningful at $35,000, negligible at $200,000.
The standard deduction is $8,850 for a single filer and $17,700 for a couple, with the personal exemption delivered as a $176 credit per person including dependents. That credit structure is worth more to lower earners than an equivalent deduction would be.
Nebraska used to tax Social Security benefits and was regularly listed among the handful of states that did. A multi-year phase-out completed ahead of its original schedule, and benefits are now exempt in full.
Guidance written before the phase-out finished still describes Nebraska as taxing Social Security. It does not. Nebraska also exempts military retirement income in full.
No Nebraska municipality levies an income tax, which sets it apart from neighbouring Iowa and Missouri, both of which have local income tax mechanisms.
The offset is property tax. Nebraska's effective property tax rates are consistently among the highest in the United States, and property tax relief has dominated state politics for years — several of the income tax changes were passed alongside property tax measures.
For a homeowner, comparing Nebraska to Iowa or Kansas on income tax alone will mislead you. For a renter, the falling income tax rate is close to the whole story.
Three brackets of 2.46%, 3.51% and 4.55%. The top rate fell from 5.2% on 1 January 2026 and is scheduled to reach 3.99% in 2027.
No longer. A phase-out completed ahead of schedule and benefits are now fully exempt. Older guidance saying otherwise is out of date.
No. No city or county levies one.
At $24,760 of taxable income for a single filer, so most full-time workers reach it.