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.
Before those brackets apply, Nebraska subtracts a standard deduction of $8,600 for a single filer ($17,200 married filing jointly, for 2025). Because the 5.2% top rate does not begin until $38,870 of taxable income, most of a typical salary is taxed in the 3.51% and 5.01% bands, so the effective Nebraska rate on a middle income lands noticeably below the 5.2% headline.
| 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 2026 federal and FICA figures alongside Nebraska's graduated rates from 2.46% to 5.2%.
| Item | Annual |
|---|---|
| Federal income tax | $5,620 |
| FICA (Social Security + Medicare) | $4,973 |
| Nebraska income tax | $2,455 |
| Take-home pay | $51,953 |
| Percent of gross kept | 79.9% |
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 $51,953, or 79.9% 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.
Nebraska's take-home pay across salaries
Estimated annual take-home for a single filer at common salaries, using 2026 federal and FICA figures alongside Nebraska's graduated rates from 2.46% to 5.2%. Open the Nebraska paycheck calculator to add a 401(k), HSA, or a different filing status.
| Annual salary | Take-home pay | % kept |
|---|---|---|
| $40,000 | $33,151 | 82.9% |
| $60,000 | $48,195 | 80.3% |
| $80,000 | $61,875 | 77.3% |
| $100,000 | $74,905 | 74.9% |
| $150,000 | $106,916 | 71.3% |
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.
Nebraska also charges no local income tax, so two people earning the same salary owe the same state tax whether they live in Omaha, Lincoln, or a rural county — there are no city or county add-ons layered on top of the state brackets.
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.