Nebraska Tax

Nebraska State Tax

Nebraska Income Tax

State tax is an amount of money levied by the state on profitable transactions. Taxes are primarily collected to help generate funds for state projects and operations including law enforcement, infrastructure, and programs for education, social service, and health services. State tax rates and regulations differ from state to state.

The Nebraska Department of revenue regulates tax activities in Nebraska. The state taxes income, businesses, properties, and sales of goods and services, among others.

Income Tax

Personal income tax rate brackets in Nebraska are as follows: 2.56% for incomes up to $2400; 3.57% for incomes up to $17,500; 5.12% for incomes up to $27,000; and 6.84% for incomes $27,001 and above. The state doubles the bracket width for couples filing jointly.

Corporate income tax rate brackets are as follows: 5.58% for adjusted gross incomes up to $100,000; and 7.81% for incomes $100,001 and above. All corporations except non-profit entities are required to file corporate income tax returns.

Nebraska Property Tax

The counties with the highest and lowest property tax rates in Nebraska are Sarpy County and Grant County, respectively. The average property tax collected in the state is 1.76% of the property’s fair market value. The total property tax collection makes up 3.62% of Nebraska residents’ yearly income.

Nebraska Sales Tax

State sales tax in Nebraska is 5.5%. The state has over 200 special sales tax jurisdictions and up to 1.5% surtax levied by local cities and municipalities. Some areas like Omaha levy an additional 2.5% special sales tax on sales of items like prepared food and drinks.