Graduated BracketsTop: 4.55% (cut from 5.84%)3.99% by 2027Last reviewed June 2026

Nebraska State Income Tax 2026

Nebraska's top income tax rate dropped to 4.55% on January 1, 2026, down from 5.84% in 2024. The state retains graduated brackets but the top has been reduced significantly. A legislated glide path takes the top rate to 3.99% by 2027. Social Security is now fully exempt as of 2026.

2026 top-rate cut: 5.84% to 4.55%

Nebraska's top marginal rate dropped from 5.84% to 4.55% on January 1, 2026. The path: 2022 6.84% top → 2023 6.64% → 2024 5.84% → 2025 5.20% → 2026 4.55% → 2027 scheduled 3.99%. Source: Nebraska LB 754 (2023). Social Security was also fully phased out of state tax in 2026.

Nebraska 2026 Quick Facts

Tax type	Graduated (4 brackets)
Top marginal rate (2026)	4.55% (down from 5.84% in 2024)
Lowest bracket	2.46% (up to $3,990 single)
Standard deduction	Conforms to federal
Local income tax	None
Reciprocity agreements	None
Social Security taxed	No (phased out by 2026)
Military pension	Exempt
2026 changes	Top rate cut + SS fully exempt
2027 target	Top rate 3.99%

2026 Nebraska Income Tax Brackets

Rate	Single Filer Income	Married Filing Jointly
2.46%	$0 - $3,990	$0 - $7,980
3.51%	$3,991 - $23,930	$7,981 - $47,860
4.40%	$23,931 - $38,580	$47,861 - $77,160
4.55%	Above $38,580	Above $77,160

Sources: Nebraska Department of Revenue (revenue.nebraska.gov), Nebraska LB 754 (2023 tax reform), Tax Foundation 2026 State Tax Guide. Data verified May 2026.

Nebraska Effective Rate Calculator

Annual Gross Income

Filing Status

Standard deduction: $15,000 applied before tax calculation.

Effective Rate

3.22%

State Tax Due

$2,417

Marginal Bracket

4.55%

State income tax only. Does not include federal income tax, Social Security, Medicare, or local income tax. Calculations are estimates for educational purposes. Verify with a licensed CPA before filing.

What You Actually Pay: Worked Examples

$50,000 income

State tax due$1,165

Effective rate2.3%

Marginal bracket4.55%

After state tax$48,835

$75,000 income

State tax due$2,275

Effective rate3.0%

Marginal bracket4.55%

After state tax$72,725

$100,000 income

State tax due$3,400

Effective rate3.4%

Marginal bracket4.55%

After state tax$96,600

$250,000 income

State tax due$10,225

Effective rate4.1%

Marginal bracket4.55%

After state tax$239,775

Single filer, standard deduction. Does not include federal tax, Social Security, or Medicare.

Local Income Tax in Nebraska

Nebraska does not have a personal local income tax. Omaha, Lincoln, Bellevue, Grand Island and other Nebraska cities do not levy an additional income tax on residents or workers.

The state-level graduated rate is the only income tax in Nebraska. This makes filing relatively straightforward despite the graduated bracket structure.

See the full local income tax guide for all US cities →

Nebraska Filing Requirements

Residents: File Nebraska Form 1040N if gross income exceeds the filing threshold. Residents are taxed on all income.

Part-year residents: File Form 1040N marked as part-year.

Non-residents: File Form 1040N marked as non-resident for Nebraska-source income.

Filing deadline: April 15. Extensions available.

Retirement Income Treatment in Nebraska

Social Security benefits	Exempt	Fully exempt as of 2026 (was partially taxed in prior years)
Traditional pension income	Taxed	Taxed at graduated rates as ordinary income
Government pension	Taxed	Taxed as ordinary income
Military pension	Exempt	Fully exempt from Nebraska state income tax
401(k) and IRA withdrawals	Taxed	Taxed at graduated rates as ordinary income
Roth IRA withdrawals	Exempt	Qualified distributions are tax-free

Nebraska has become more retirement-friendly with the 2026 full exemption of Social Security and the reduced top rate of 4.55%. Traditional pensions and 401(k) distributions remain taxable as ordinary income. See the full 50-state retirement income scorecard.

Nebraska Income Tax: FAQs

What are Nebraska's 2026 income tax brackets?

Nebraska uses a graduated income tax with 4 brackets in 2026 (single filers): 2.46% on income up to $3,990, 3.51% on $3,991 to $23,930, 4.40% on $23,931 to $38,580, and 4.55% on income above $38,580. The 4.55% top rate is the result of a 2023 reform (LB 754) that cut the top from 5.84% in stages.

Will Nebraska's tax rate keep dropping?

Yes. Nebraska's 2023 reform (LB 754) set a legislated path to reduce the top marginal rate to 3.99% by 2027. The 2026 top rate is 4.55%; 2027 is scheduled to drop to 3.99%. Whether subsequent reductions occur depends on revenue performance and future legislative action.

Does Nebraska have a local income tax?

No. Nebraska does not allow cities or counties to levy a personal income tax. The state-level rate is the only income tax in Nebraska. Omaha, Lincoln, Bellevue and other Nebraska cities do not have a city income tax.

Does Nebraska tax Social Security?

No. Nebraska began phasing out Social Security taxation; for 2026 Social Security benefits are fully exempt from Nebraska state income tax. Previously, Nebraska was one of the 11 states taxing Social Security, but the 2022 reform eliminated this gradually.

What is Nebraska's standard deduction?

Nebraska conforms to the federal standard deduction. For 2026, the federal standard deduction is approximately $15,000 for single filers and $30,000 for married filing jointly (using estimated inflation-adjusted figures). This is more generous than most state-specific standard deductions.

Sources: Nebraska Department of Revenue (revenue.nebraska.gov), Nebraska LB 754 (2023 tax reform), Tax Foundation 2026 State Tax Guide. Data verified May 2026. Not tax advice. Always confirm current figures with the Nebraska Department of Revenue or a licensed CPA or Enrolled Agent before filing.