Nebraska paycheck guide
How Nebraska calculates income tax in 2026
Nebraska starts from federal adjusted gross income and subtracts its own standard deduction: $8,850 for a single filer and $17,700 for a married couple filing jointly. That is far smaller than the $16,100 federal deduction, so more of a Nebraska worker's wages reach the state brackets than reach the federal ones.
For a single filer, the first $4,130 of taxable income is taxed at 2.46%, income up to $24,760 at 3.51%, and everything above at 4.55%. Joint filers pay 2.46% up to $8,250 and 3.51% up to $49,530. Once taxable income passes the second threshold, every added dollar costs the 4.55% top rate. After the brackets, each person on the return subtracts a nonrefundable personal exemption credit of $176.
The 2026 cut is one step in a 2023 law that lowers the top rate each year through 2027. The rate drops from 5.2% to 4.55% this year and is set to reach 3.99% in 2027. Withholding tables change each January to match, so most workers see the cut in their paychecks without filing anything.
Worked example: a $75,000 salary in Nebraska
Begin with $75,000 of wages and subtract the $8,850 standard deduction, leaving $66,150 of Nebraska taxable income. The first $4,130 at 2.46% is $102. The next $20,630 at 3.51% is $724. The remaining $41,390 at 4.55% is $1,883. Subtract the $176 personal exemption credit and Nebraska tax comes to $2,533, an effective rate of 3.38%.
Federal tax uses the $16,100 federal standard deduction and leaves $58,900 taxable: $12,400 at 10%, $38,000 at 12%, and $8,500 at 22%, for $7,670. Social Security takes $4,650 and Medicare $1,088. You end up with $59,059 a year, about $4,922 a month. The Nebraska $75,000 salary page breaks it down by paycheck.
At $150,000, taxable income is $141,150 and $116,390 of it falls in the 4.55% bracket, and after the $176 credit the Nebraska bill is $5,945. That is a 3.96% effective rate, well below the old 5.2% top rate on its own.
No city income tax in Omaha or Lincoln
Nebraska cities and counties do not tax wages. Workers in Omaha, Lincoln, Bellevue, Grand Island, and Kearney all pay the same state tax, which makes Nebraska simpler than Missouri or Iowa, where some workers also owe a local income or school district surtax.
Nebraska has no state disability or paid family leave payroll program either. After federal tax, FICA, and Nebraska tax, the rest of a pay stub is benefits you choose. Traditional 401(k), HSA, and pre-tax health premiums lower federal adjusted gross income, and therefore Nebraska tax, at up to 4.55% per dollar.
Withholding, Form W-4N, and Omaha-Council Bluffs commuters
Nebraska employers set state withholding from Form W-4N, the state's own certificate, rather than the federal W-4. Revisit it in January 2027, when the 3.99% top rate arrives, especially if you added a flat extra amount to cover a past balance due.
Nebraska has not signed a reciprocity deal with Iowa or any other state. The Omaha-Council Bluffs metro straddles the Missouri River, so this matters: an Iowa resident working in Omaha has Nebraska tax withheld and claims a credit on the Iowa return. A Nebraska resident working in Council Bluffs pays Iowa tax first and claims a Nebraska credit for it.
Remote workers living in Nebraska owe Nebraska tax on all wages, even when the employer is in another state. If an out-of-state employer will not withhold for Nebraska, make estimated payments during the year.
How Nebraska compares with its neighbors
Nebraska's take-home pay at $75,000 places it 24th of 51. South Dakota and Wyoming, with no wage tax, leave the same worker $2,533 more, and Iowa's flat 3.8% rate leaves $335 more. The other neighbors take more: Missouri by a single dollar, Colorado's flat 4.4% by $59, and Kansas by $852.
The ranking improves to 23rd at $150,000, and the 2027 cut could move Nebraska up again if neighbors hold their rates. For the most common cross-border choices, see Iowa vs Nebraska and Nebraska vs South Dakota.
What to expect at your income
Earning under $50,000
Nebraska's small standard deduction means lower earners pay state tax sooner than federal tax. A single filer earning $30,000 owes $523 to Nebraska after the personal exemption credit, a 1.74% effective rate, with a 3.51% marginal rate, and takes home $25,762. Raise that to $50,000 and Nebraska takes $1,395, leaving $40,960. If you qualify for the federal earned income tax credit, claim Nebraska's refundable earned income credit too, which can return part of what was withheld.
Earning $50,000 to $150,000
Every dollar in this range is taxed at Nebraska's 4.55% top rate for single filers, down from 5.2% last year. At $100,000 a single filer pays $3,670 to Nebraska and takes home $75,510, or $6,293 a month. On a joint return with one $100,000 salary, two exemption credits help push the Nebraska bill down to $2,791 and take-home up to $81,919. Traditional 401(k) and HSA contributions save 4.55% in state tax plus the federal rate, and the 2027 cut will lower the state share of each raise again.
Earning over $150,000
At $150,000 a single Nebraska filer pays $5,945 and takes home $107,846. A $250,000 earner owes $10,495, or 4.2% of salary, and keeps $172,687. The top rate stays flat from there, and its scheduled drop to 3.99% in 2027 is worth most to earners in this band. Bonuses are taxed at the same 4.55% rate, so a large one is easier to plan for here than in states with higher top brackets.
Nebraska paycheck tips
Review Form W-4N after each rate cut
Nebraska's rate fell for 2026 and falls again in 2027. Extra withholding you added under the old rates may now overshoot.
Council Bluffs residents: claim the Iowa credit
If you live in Iowa and work in Omaha, Nebraska tax is withheld. Claim the credit for tax paid to Nebraska on your Iowa return.
Deduct NEST 529 contributions
Contributions to Nebraska's NEST 529 plan are deductible on the Nebraska return up to an annual limit. The deduction lowers your bill when you file Form 1040N.
Make estimated payments for out-of-state employers
Remote workers whose employer does not withhold Nebraska tax should make quarterly estimated payments to avoid a balance due and penalties.
Common mistakes
Using the federal standard deduction for Nebraska
Nebraska's standard deduction is $8,850 for a single filer, not $16,100. Applying the federal amount understates Nebraska taxable income.
Budgeting with last year's top rate
Calculators that still use 5.2% overstate Nebraska tax for 2026. The top rate is now 4.55%.
Assuming Iowa and Nebraska have reciprocity
They do not. Omaha-area commuters pay the work state's tax and claim a credit in their home state.
Moving to or from Nebraska
Moving to Nebraska
Moving to Nebraska from Kansas raises take-home pay by $852 a year at $75,000, and from Colorado by $59; Missouri is a wash. Coming from Iowa costs $335, and from South Dakota or Wyoming you will pay $2,533 more. There is no city income tax to add, and Nebraska no longer taxes Social Security benefits. The 2027 cut to 3.99% will narrow every gap.
Leaving Nebraska
Leaving Nebraska for South Dakota or Wyoming saves a single $75,000 earner $2,533 a year, and a move to Iowa saves $335. Colorado costs $59 more and Kansas $852 more, while Missouri comes out the same. Nebraska taxes income earned while you lived there, so file Form 1040N as a part-year resident for the year you move and update withholding with your new employer.