How much is Nebraska income tax?
Nebraska income tax at 3 levels of Nebraska taxable income — what is left after Nebraska's own deductions and exemptions. Local income taxes are not included.
| Taxable income | Single | Married filing jointly |
|---|---|---|
| $50,000 | $1,9743.9% effective · 4.55% marginal | $1,6733.3% effective · 4.55% marginal |
| $100,000 | $4,2494.2% effective · 4.55% marginal | $3,9483.9% effective · 4.55% marginal |
| $250,000 | $11,0744.4% effective · 4.55% marginal | $10,7734.3% effective · 4.55% marginal |
What are Nebraska's income tax brackets for 2026?
| Taxable income | Rate |
|---|---|
| Up to $4,130 | 2.46% |
| Over $4,130 up to $24,760 | 3.51% |
| Over $24,760 | 4.55% |
| Taxable income | Rate |
|---|---|
| Up to $8,250 | 2.46% |
| Over $8,250 up to $49,530 | 3.51% |
| Over $49,530 | 4.55% |
Source: Neb. Rev. Stat. §77-2715.03 · NE DOR, 2026 Form 1040N-ES (8-014-2025 Rev. 11-2025) p.6 rate schedule, checked September 12, 2026.
Can you deduct Nebraska income tax on your federal return?
The federal deduction for state and local taxes (SALT) is capped at $40,400 for 2026 — $20,200 if married filing separately — and the cap shrinks toward $10,000 once modified AGI passes $505,000. A single filer with $250,000 of Nebraska taxable income owes about $11,074 in Nebraska income tax — 27% of that cap before any property tax.
SALT cap workaroundsDoes Nebraska have a pass-through entity tax (PTET)?
Yes. A partnership or S corporation can elect to pay Nebraska income tax at the entity level. The business deducts it federally, so that state tax is not limited by the SALT cap, and the owners claim a Nebraska credit or exclusion for it. Deductsy's plan treats March 15 as the Nebraska election or first-payment deadline; it is approximate, so confirm it with Nebraska before relying on it.
PTET savings calculatorAre HSA contributions deductible in Nebraska?
Yes. Nebraska follows the federal treatment, so an HSA contribution — up to $4,400 with self-only coverage or $8,750 with family coverage for 2026 — lowers Nebraska taxable income as well as federal.
Does Nebraska give a tax break for 529 plan contributions?
Yes. Nebraska lets you deduct up to $10,000 a year of contributions to Nebraska's own 529 plan, whether you file single or jointly. Income limits, per-beneficiary caps and carryforwards differ by state, so check the plan's rules.
529 plan tax savings calculatorWhat is the property tax rate in Nebraska?
Nebraska's average effective property tax rate is 1.49% — tied for the 7th highest of 51 jurisdictions and 1.7 times the national average of 0.9%. That is about $1,490 a year for every $100,000 of home value; the rate varies widely by county and school district.
Itemize or take the standard deduction?How much does an LLC cost to keep in Nebraska each year?
Deductsy budgets about $13 a year for a Nebraska LLC — the annual report fee or minimum franchise tax, with a fee due every two years counted at half. Fees change, so confirm with Nebraska's business filing office.
Nebraska S-corp tax calculatorHow do Nebraska taxes compare with neighboring states?
| State | Top income tax rate | Income tax on $100,000 (single) | Property tax (avg) |
|---|---|---|---|
| Nebraska | 4.55% | $4,249 | 1.49% |
| Colorado | 4.4% | $4,400 | 0.48% |
| Iowa | 3.8% | $3,800 | 1.39% |
| Kansas | 5.58% | $5,493 | 1.29% |
| Missouri | 4.7% | $4,555 | 0.85% |
| South Dakota | None | $0 | 1.06% |
| Wyoming | None | $0 | 0.57% |
On $100,000 of taxable income a single filer's Nebraska income tax is $4,249 — more than in 3 of 6 neighboring states. The lowest is South Dakota at $0; the highest is Kansas at $5,493. Nebraska's average property tax rate is higher than in all 6.
Income tax is each state's own tax on the same state taxable income; local income taxes are not included.
More Nebraska tax notes
- LB 754 phases Nebraska's top rate down again in 2027.
Tax moves that matter most for Nebraska
If you own an S corporation, partnership or multi-member LLC, Nebraska's PTET election moves the Nebraska income tax on that profit to the business, where it is deductible federally and outside the SALT cap.
That is tied for the 7th highest of 51 and 1.7 times the national average, so property tax does much of the work of filling the SALT cap. Bunching two years of property tax into one can push itemized deductions past the standard deduction in alternate years.
An S-corp election can cut self-employment tax once profit is large enough to pay yourself a reasonable salary and still cover payroll and filing costs. The Nebraska calculator adds Nebraska's own entity fees and taxes to that breakeven.
With 1099 income, a Solo 401(k) can take up to $72,000 a year (2026) — usually more than a SEP-IRA at the same income. Contributions lower both federal and Nebraska income tax.
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