Nebraska Income Tax Rates 2025
Nebraska has a progressive income tax system with 4 brackets and rates ranging from 2.46% to 5.84%. The state has been gradually reducing its top rate in recent years as part of ongoing tax reform efforts.
Tax Type
Progressive
Rate Range
2.46% – 5.84%
Brackets
4
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Nebraska is only part of the equation — federal taxes apply too.
State Tax Ranking
At $75,000 income (single filer), Nebraska ranks #35 out of 51 states — where #1 is the lowest tax burden.
Best states to move to from Nebraska →Tax at Different Income Levels
| Income | State Tax | Effective Rate | Take-Home |
|---|---|---|---|
| $50,000 | $2,252 | 4.50% | $43,876 |
| $75,000 | $3,712 | 4.95% | $63,339 |
| $100,000 | $5,172 | 5.17% | $81,379 |
| $150,000 | $8,092 | 5.39% | $116,841 |
| $200,000 | $11,012 | 5.51% | $151,921 |
Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).
2025 Tax Brackets — Single Filer
| Taxable Income | Rate |
|---|---|
| $0 – $3,700 | 2.5% |
| $3,700 – $22,170 | 3.5% |
| $22,170 – $35,730 | 5.0% |
| Over $35,730 | 5.8% |
2025 Tax Brackets — Married Filing Jointly
| Taxable Income | Rate |
|---|---|
| $0 – $7,400 | 2.5% |
| $7,400 – $44,340 | 3.5% |
| $44,340 – $71,460 | 5.0% |
| Over $71,460 | 5.8% |
Tax Overview
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tax Planning Tip
In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Nebraska's progressive tax applies marginal rates to each bracket of income. The state uses federal adjusted gross income as the starting point for calculating state taxable income, with various Nebraska-specific adjustments. Nebraska partially taxes Social Security benefits, though exemptions are available for lower-income retirees.
Property Tax & Cost of Living
Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.
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Frequently asked questions
What is Nebraska's income tax rate in 2025?
Nebraska has a progressive income tax with 4 brackets ranging from 2.46% to 5.84%. Your effective rate depends on your total taxable income.
Does Nebraska tax Social Security benefits?
Nebraska partially taxes Social Security benefits, though exemptions are available for lower-income retirees.