Does Nebraska have a state income tax?

Yes. Nebraska has a state income tax with a top rate of 4.5%.

How much is Nebraska state tax on a $100,000 salary?

On a $100,000 salary in Nebraska, state income tax is approximately $3,817. Your estimated total take-home pay is $75,363/year.

What other taxes does Nebraska have?

Nebraska has a 5.5% state sales tax with local add-ons bringing combined rates to 5.5-7.5% (Omaha 7%, Lincoln 7.25%). Property tax averages 1.61% effective — moderate to high. Nebraska has no estate tax (the inheritance tax was eliminated in 2017; estate tax never existed). Nebraska conforms to federal standard deduction (with some adjustments). Senior tax credit + military retirement subtraction available.

How does Nebraska compare to other states for taxes?

Nebraska's top rate of 4.5% compares favorably — below the national median for state income taxes.

What is Nebraska's income tax rate?

Nebraska has 4 brackets: 2.46% / 3.51% / 5.01% / 4.55% top above $35,730 (single). Most professionals are effectively in the 4.55% top bracket. The 5.01% middle bracket is unusual — it's higher than the top rate, due to the LB 754 (2023) phase-down which prioritized the top rate first. Top rate is phasing toward 3.99% by 2027.

What's special about Omaha's Fortune 500 cluster?

Omaha hosts an unusually concentrated Fortune 500 presence for a city its size: Berkshire Hathaway HQ (Warren Buffett's holding company), Mutual of Omaha (insurance), Union Pacific Railroad HQ, Peter Kiewit Sons' (construction), TD Ameritrade (now Schwab), ConAgra Foods. This creates substantial corporate finance + insurance + transportation industry employment.

How does Nebraska compare to neighbors for taxes?

NE 4.55% phasing to 3.99% vs IA 3.8% flat (IA slightly favorable now, NE matches by 2027). NE 4.55% vs KS 5.7% top (NE favorable). NE property tax (1.61%) vs IA (~1.50%) — comparable, both moderate to high. For working professionals, IA currently has the slight edge but NE catches up by 2027.

Is Nebraska retirement-friendly?

Moderately. Top rate 4.55% applies to retirement income but Social Security is fully exempt. Military retirement income subtraction available. No estate tax (since 2017). Property tax 1.61% — moderate. Cost of living below national average. Berkshire Hathaway's annual shareholder meeting drives unique Omaha events but doesn't directly affect retirement planning.

State Tax Guide

Nebraska State Income Tax Guide (2026)

Nebraska has a 4-bracket progressive income tax topping at 4.55% (phasing toward 3.99% by 2027 per LB 754) — combined with Omaha's Fortune 500 cluster (Berkshire Hathaway, Mutual of Omaha, Union Pacific HQ) and stable Midwest economy.

Top State Rate

4.5%

$100k Take-Home

$75,363

/year (single)

State Tax on $100k

$3,817

single filer

Nebraska Income Tax Brackets (2026)

Marginal Rate	Taxable Income (Single Filer)
2.46%	$0→$3,700
3.51%	$3,700→$22,170
5.01%	$22,170→$35,730
4.55%	$35,730→All income above $35,730

Each rate applies only to income within that bracket. Your effective rate is the average across all brackets — meaningfully lower than your top marginal rate.

Standard deduction: $7,900 single / $15,800 married filing jointly

Brackets reflect the most recently published schedules. Some states inflation-index thresholds annually — specific 2026 amounts may shift slightly. Verify with your state's Department of Revenue before filing.

$100,000 Salary in Nebraska — Full Tax Breakdown

Category	Annual	Monthly
Gross Salary	$100,000	$8,333
Federal Tax	−$13,170	−$1,098
FICA (SS + Medicare)	−$0.00	−$0.00
Nebraska State Tax	−$3,817	−$318
Take-Home Pay	$75,363	$6,280

Assumes single filing status, standard deduction, no 401(k) or HSA contributions. 2026 tax year.

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The 30-second version

1.Nebraska has 4 brackets topping at 4.55% (phasing toward 3.99% by 2027 per LB 754).
2.Omaha Fortune 500 cluster — Berkshire Hathaway HQ + Mutual of Omaha + Union Pacific HQ + ConAgra + Peter Kiewit + TD Ameritrade legacy.
3.Property tax 1.61% effective — moderate to high.
4.Standard deduction $7,900 single / $15,800 MFJ. No estate tax (eliminated 2017).
5.Major employers: Berkshire Hathaway HQ Omaha, Mutual of Omaha, Union Pacific Railroad HQ, ConAgra Foods, Peter Kiewit Sons', Nebraska Medicine (UNMC), Methodist Health System, University of Nebraska, agriculture sector.

Why you can trust these numbers

Numbers reflect 2026 IRS federal brackets, FICA caps, and Nebraska Department of Revenue 4-bracket progressive structure per LB 754 (2023) phase-down. The calculator applies NE's progressive rates. Nebraska conforms to federal AGI starting point with state-specific adjustments.

Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; state brackets verified against the Tax Foundation 2026 State Income Tax Rates compilation and the Nebraska Department of Revenue's published 2026 schedule.

Our honest opinion (which is just an opinion)

Nebraska is genuinely competitive for Omaha's Fortune 500 cluster employees + healthcare workers + insurance industry professionals. The phase-down to 3.99% by 2027 makes NE structurally favorable for the medium term. Property tax is the persistent caveat for buyers.

The case for Nebraska:

4.55% top phasing to 3.99% by 2027 — meaningfully favorable
Omaha Fortune 500 cluster (Berkshire Hathaway HQ + Mutual of Omaha + UP)
No estate tax (eliminated 2017)
Strong UNMC + Nebraska Medicine healthcare employment
Cost of living dramatically below coastal markets
Strong UNL + Creighton university talent pipelines

The case against:

Property tax 1.61% effective — moderate to high
Tornado risk genuine — property insurance considerations
Limited high-comp career mobility outside Omaha + Lincoln
5.01% middle bracket creates quirky progressive structure
Cold winters significant lifestyle factor
Smaller specialty subspecialty markets than peer Midwest states

Honest take: Nebraska is genuinely competitive for Omaha Fortune 500 employees (Berkshire Hathaway, Mutual of Omaha, UP), Nebraska Medicine + UNMC healthcare workers, insurance industry professionals, and family-stage Midwest living. The 2027 phase-down to 3.99% improves NE's competitive position vs neighboring IA + KS.

Sources & further reading

A few honest notes

Not personal tax, legal, or financial advice. Verify with a licensed CPA, EA, or tax attorney.
Tax law changes. This guide reflects 2026 IRS schedules and current Nebraska Department of Revenue rules.
Phase-down to 3.99% by 2027 is contingent on revenue triggers per LB 754.
Property tax estimates vary by county. Douglas (Omaha) and Lancaster (Lincoln) differ from rural counties.
Tornado insurance is a structural Plains state caveat.
No client relationship is created by reading this page.

Last updated April 2026 with 2026 IRS schedules and current Nebraska Department of Revenue guidance.