Sales Tax
- Statewide: 5.5%
- Local governments can levy an additional sales tax of no more than 2.0%.
- Current average sales tax (with local taxes included): 6.4%
- Common Exceptions at State Level:
- Unprepared Foods: Exempt
- Prepared Foods: 10%
- Prescription Medicine: Exempt
- Gasoline Tax: 49.70 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 55.10 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
- Personal Income Tax Rate Range: Four brackets from 2.46% to 4.55% (on income greater than $22,170).
- Standard deduction (capped at 20% of Adjusted Gross Income): Minimum $2,320, Maximum $5,800. Over 65: Additional $6,000.
- Personal Exemption Allowance: $171. Dependent Exemption: $171 (taken as tax credit)
- Itemized Deductions Allowed?: Yes, subject to limitations
- Retirement Income
- Social Security: Exempt
- 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: Civil Service Retirement Systems annuities exempt. All others are taxable at ordinary income tax rates.
- Military Pay
- Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income. Nebraska National Guard member pay exempt if included in federal AGI.
- 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 1.49% of the property's assessed value.
- Calculation of assessed value: 100% of fair market value
- Relief programs for:
- Low-Income Owner-Occupied: Up to 100% exemption available.
- 65 and Over/Disabled/Disabled Veterans and Surviving Spouses: Full or partial exemption based on income (and, for veterans, their disability rating).
- Veteran: Full or partial exemption if meet certain requirements.
- Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: There is an inheritance tax of 1% on estates over $100,000 for immediate relatives (there is no inheritance tax if the heir is 21 or younger), an 11% tax for estates over $40,000 for remote relatives, and an 15% tax on estates over $25,000 for other beneficiaries. There is no estate tax.
Department of Revenue Website: https://revenue.nebraska.gov
