Nebraska

Sales Tax

  • Statewide: 5.5%
  • Counties can levy an additional sales tax of no more than 2.5%.
  • Current average sales tax (with local taxes included): 6.047%
  • Common Exceptions at State Level:
    • Groceries: Exempt
    • Prepared Foods: 10%
  • Gasoline Tax: 47.00 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 52.40 cents/gallon (Includes all state, local, and federal taxes)
  • Cigarette Tax: 64 cents/pack of 20

 

Personal Income Tax

  • Personal Income Tax Rate Range: Four brackets from 2.46% to 6.84% (on income greater than $32,210)
  • Standard deduction: Same as Federal. Single Filing Status: $7,100 Married Filing Jointly: $14,200
  • Personal Exemption Allowance: $142. Dependent Exemption: $142 (taken as tax credit)
  • Itemized Deductions Allowed?: Yes, subject to limitations
  • Retirement Income
    • Social Security: Exempt if income less than $44,460, $59,100 for joint filers or chose to deduct 5% 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, nonresidents deductible
    • Military Retirement Pay: Taxable at ordinary income tax rates*
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Exempt
*Military retirees can choose to exclude 40% for seven consecutive years beginning with year election was made or 15% of all years beginning with age 67. Military retirement pay will be 100% exempt beginning in 2022.

 

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 $52,001).
  • Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: There is an inheritance tax of 1% on estates over $40,000 for immediate relatives, a 13% tax for estates over $15,000 for remote relatives, and an 18% tax on estates over $40,000 for other beneficiaries (surviving spouses are exempt). There is no estate tax.

 

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

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