Nebraska's income tax tops out at 5.2% for 2025, and the state has been cutting that rate aggressively, with a schedule to bring it down toward 3.99% over the next few years.
A solid standard deduction keeps the effective rate moderate, and Nebraska now fully exempts Social Security. Here is how the brackets work on your paycheck. See your exact take-home with the free Nebraska paycheck calculator.
How Nebraska's income tax works
Nebraska uses four brackets: 2.46% up to $4,030, 3.51% to $24,120, 5.01% to $38,870, and 5.2% above that (single filer). It applies after a standard deduction ($8,600 single / $17,200 married). There is no local income tax.
Nebraska has been lowering its top rate quickly, from above 6.8% a few years ago to 5.2% now, with further cuts scheduled toward 3.99%, so the state portion keeps shrinking.
| Taxable income | Rate |
|---|---|
| $0 – $4,030 | 2.46% |
| $4,030 – $24,120 | 3.51% |
| $24,120 – $38,870 | 5.01% |
| Over $38,870 | 5.2% |
Your take-home on a $65,000 salary in Nebraska
Here is how a $65,000 salary breaks down for a single filer, using 2025 federal and FICA figures alongside Nebraska's graduated rates from 2.46% to 5.2%.
| Item | Annual |
|---|---|
| Federal income tax | $5,246 |
| FICA (Social Security + Medicare) | $4,973 |
| Nebraska income tax | $2,455 |
| Take-home pay | $52,327 |
| Percent of gross kept | 80.5% |
On a $65,000 salary a single filer owes about $2,455 in Nebraska income tax, an effective rate near 3.8%, and keeps roughly $52,327, or 80.5% of gross. As Nebraska's scheduled rate cuts phase in, that take-home should keep rising, and living costs in Omaha and Lincoln run near or below the national average. Compare with Iowa.
A top rate that keeps getting cut
Nebraska's story is its rapid rate-cutting: the top rate has fallen sharply in recent years and is legislated to keep dropping toward 3.99%, so a Nebraskan's tax bill is on a downward path year over year.
Nebraska now fully exempts Social Security benefits, a recent change that meaningfully helps retirees on top of the falling rates.
How to keep more of your Nebraska paycheck
Because Nebraska starts from a federal-style base, a traditional 401(k) and HSA lower your Nebraska and federal taxable income together (and the HSA also avoids FICA), the cleanest way to push your take-home higher.