What Is the Nebraska State Tax Rate in 2027?
A quick answer on income, sales, and effective rates, and what it means for your pay
The short answer
For 2027, the Nebraska state income tax rate tops out at 3.99%. Lower slices of income are taxed at about 2.46% and 3.51%.
The statewide sales tax rate is 5.5%, and cities may add up to about 2% more (Omaha totals 7%). Nebraska has no local income tax on wages.
| Tax | 2027 rate | On a paycheck? |
|---|---|---|
| Income tax, top tier | 3.99% | Yes, through withholding |
| Income tax, lower tiers | about 2.46% and 3.51% | Yes, through withholding |
| State sales tax | 5.5% | No |
| Omaha combined sales tax | about 7% | No |
| Local wage or income tax | None | No |
If you only care about how much state tax leaves each paycheck, the Nebraska income tax withholding calculator gives a per-check figure based on your pay frequency and W-4N allowances.
Marginal vs. effective rate
Your marginal rate is the rate on your next dollar of income. Your effective rate is total Nebraska tax divided by your income.
Because Nebraska applies a standard deduction and a progressive schedule, a single worker earning $60,000 typically pays an effective state rate around 3%, not 3.99%. Lower earners pay noticeably less.
For a detailed breakdown of each tier, see Nebraska income tax brackets.
How the rate has changed
Nebraska enacted a multi-year rate reduction in 2023. The top individual rate dropped each year from 6.64% (2022) to 3.99% (2026).
The corporate rate followed a similar path. If you compare an old pay stub with a new one at the same salary, the lower Nebraska line is mostly the result of these cuts.
Other state taxes that touch your money
- Sales and use tax: 5.5% state plus local options. Groceries are generally exempt.
- Property tax: levied locally; partially offset by state property tax credits.
- Social Security benefits: fully exempt from Nebraska income tax since 2024.
- Unemployment tax: paid by employers, not deducted from your check.
Using the rate in planning
A quick rule of thumb: multiply your expected raise by your federal marginal rate, plus 7.65% FICA, plus about 3.5–4% Nebraska, to estimate how much of a raise you keep. For an exact paycheck estimate across all taxes, open the withholding guide for the state portion or the main calculator for everything at once.
Remember that rates and thresholds change. Treat any figure here as an estimate and confirm with the Nebraska Department of Revenue before filing.
Frequently asked questions
Is Nebraska's tax rate the same for everyone?
The schedule is the same, but your effective rate depends on income and filing status. Two people in the same city with different salaries will pay different effective rates even though the top marginal rate is identical.
Do retirees pay Nebraska state income tax?
Social Security benefits are exempt from Nebraska income tax. Pensions, IRA withdrawals, and most other retirement income remain taxable, while part of military retirement can be excluded.
Does Nebraska tax remote workers?
Nebraska taxes residents on all income and nonresidents on Nebraska-source wages. If you live in Nebraska and work remotely for an out-of-state company, you generally owe Nebraska tax and should file a W-4N with that employer.
Is there an inheritance tax?
Yes. Nebraska is one of few states with a county-level inheritance tax, though close relatives receive a sizable exemption and pay a low rate.
It does not affect paychecks.