Estimate your take-home pay in Nebraska. The state levies a graduated income tax that tops out at 5.2% (2.46% to 5.2% across 4 brackets). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
Disclaimer: All figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Tax rates, brackets, and withholding rules change and vary by locality and personal circumstances. Verify current rates with the Nebraska Department of Revenue or the IRS, and consult a qualified tax professional before making financial decisions.
Nebraska Tax Snapshot
- State Income Tax
- 5.2% top rate
- Sales Tax (state + local avg)
- 6.94%
- Avg Property Tax Rate
- 1.61%
- Median Home Value
- $226,500
- State Minimum Wage
- $13.50/hr
Did You Know?
Nebraska is reducing its top income tax rate toward 3.99% by 2027.
How Nebraska's Graduated Brackets Affect Your Paycheck
When you earn a paycheck in Nebraska, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on 2.46% to 5.2% across 4 brackets. The state minimum wage is $13.50 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 1.61% property tax rate on homes valued around $226,500.
Nebraska also levies a combined state and average local sales tax of 6.94%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.
How Nebraska's Income Tax Compares Nationally
Nebraska uses a graduated income tax — 2.46% to 5.2% across 4 brackets — so higher slices of income are taxed at higher rates rather than one flat percentage.
Its 5.2% top rate is the 23rd-highest nationally among the 42 states and jurisdictions that tax wages, below the median top rate of 5.54%.
For comparison, nearby states line up like this: Colorado (top rate 4.4%); Iowa (top rate 3.8%); Kansas (top rate 5.7%); Missouri (top rate 4.7%); South Dakota (no income tax).