Nebraska

Sales Tax

  • Statewide: 5.5%
  • Counties can levy an additional sales tax of no more than 4.5%.
  • Current average sales tax (with local taxes included): 6.325%
  • Common Exceptions at State Level:
    • Groceries: Exempt
    • Prepared Foods: 10%
    • Prescription Medicine: Exempt
  • Gasoline Tax: 44.10 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 49.50 cents/gallon (Includes all state, local, and federal taxes)

 

Personal Income Tax

  • Personal Income Tax Rate Range: Ten brackets from 2.46% to 6.84% (on income greater than $32,210). Top rate dropped to 6.64% effective Jan. 1, 2023.
  • Standard deduction: Same as Federal. Single Filing Status: $7,350 Married Filing Jointly: $14,700
  • Personal Exemption Allowance: $146. Dependent Exemption: $146 (taken as tax credit)
  • Itemized Deductions Allowed?: Yes, subject to limitations
  • Retirement Income
    • Social Security: Exempt if income less than $44,460, $59,960 for joint filers or chose to deduct 40% of Social Security benefits
    • IRAs: Taxable at ordinary income tax rates
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates.
    • Private pensions: Taxable at ordinary income tax rates
    • Public Pensions: Taxable at ordinary income tax rates
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income 
    • Military Retirement Pay: Exempt
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Exempt

 

Property Tax

  • Local municipalities average 1.73% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value
  • Relief programs for:
    • 65 and over/Disabled/Disabled Veteran & Surviving Spouse/Surviving Spouse of KIA servicemember: Full or partial exemption based on assessed value (must be less than $95,000) and income (must be less than $45,101; $53,601 for married filing jointly).
  • Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: There is an inheritance tax of 1% on estates over $40,000 ($100,000 effective Jan. 1, 2023) for immediate relatives (there is no inheritance tax if the heir is 21 or younger), a 13% tax for estates over $15,000 for remote relatives (changed to 11% for over $40,000 as of Jan. 1, 2023), and an 18% tax on estates over $25,000 for other beneficiaries (surviving spouses are exempt; changed to 15% as of Jan. 1, 2023). There is no estate tax.

 

Department of Revenue website: www.revenue.nebraska.gov

More Financial Guidance From MOAA 

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