Nebraska Retirement Income Tax 2025
See how Nebraska treats Social Security, private pensions, annuities, and IRA distributions for a full-year resident, then run the official-source estimate with your own income.
Social Security
For tax years beginning in 2025, Nebraska subtracts 100% of Social Security benefits included in federal adjusted gross income.
Pension and IRA income
Private pension and IRA income included in federal adjusted gross income is generally taxable.
Estimated 2025 state tax
$2,941Resident return; local taxes and unmodeled credits excluded.
Modeled state taxable income
$65,000Retirement-income subtraction
$15,000For tax years beginning in 2025, Nebraska subtracts 100% of Social Security benefits included in federal adjusted gross income.
Private pension and IRA income included in federal adjusted gross income is generally taxable.
Scope: Military retirement, railroad retirement, and other special Nebraska subtractions are not modeled.
Nebraska worked example
For a single filer age 68 with $80,000 of federal AGI, including $15,000 of federally taxable Social Security, $30,000 of pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income:
Retirement subtraction
$15,000
Modeled state taxable income
$65,000
Estimated 2025 state tax
$2,941
This is an illustration, not a tax return. Local taxes, credits, and unmodeled state adjustments are excluded.
What this model does not include
Military retirement, railroad retirement, and other special Nebraska subtractions are not modeled. Review the official instructions before filing.
Review the full Nebraska income tax guide →Nebraska retirement income tax FAQs
Does Nebraska tax Social Security benefits in 2025?
For tax years beginning in 2025, Nebraska subtracts 100% of Social Security benefits included in federal adjusted gross income.
Does Nebraska tax pensions and IRA withdrawals?
Private pension and IRA income included in federal adjusted gross income is generally taxable.
What does the Nebraska retirement tax example include?
The example uses a single filer age 68 with $80,000 of federal AGI, $15,000 of federally taxable Social Security, $30,000 of private pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income.
Is this a complete Nebraska resident return?
No. The estimate focuses on retirement-income treatment and the state rate schedule. It excludes local income tax and does not reproduce every deduction, credit, addition, subtraction, or special pension rule. Military retirement, railroad retirement, and other special Nebraska subtractions are not modeled.
Sources
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