Nebraska Take-Home Pay Calculator
3.99% flat rateEstimate your net paycheck after federal taxes, FICA, and Nebraska state income tax.
Last updated: April 2026
Nebraska Income Tax
Nebraska enacted a flat 3.99% income tax rate for 2026, down from a graduated system that topped at 5.84% just two years prior.
Nebraska State Income Tax: What You Need to Know
Nebraska enacted a flat 3.99% income tax rate for 2026, down from a graduated system that topped at 5.84% just two years prior.
Nebraska completed a dramatic tax transformation under LB 873 (2022), cutting its top income tax rate from 6.84% to a flat 3.99% by 2026 — a reduction of nearly 3 percentage points in four years. The reform also simplified Nebraska's graduated bracket structure, ultimately landing at a single flat rate. Nebraska taxable income generally conforms to federal adjusted gross income with Nebraska adjustments. Nebraska has no city income tax on wages at the state level, though Omaha and Lincoln do not separately tax wages. Nebraska also exempts Social Security benefits for lower-income taxpayers.
On top of state taxes, all workers also pay federal income tax based on the 2026 progressive brackets, plus FICA taxes: Social Security (6.2% up to $176,100) and Medicare (1.45% on all wages).
Our calculator applies Nebraska's 3.99% flat rate to your gross income as a simplified estimate. Actual state taxes may vary based on deductions, exemptions, and local taxes not captured in this estimate.
Nebraska Take-Home Pay Examples (2026, Single Filer)
Estimates based on standard deduction, no pre-tax deductions. Last updated: April 2026.
| Salary | Federal Tax | State Tax | FICA | Take-Home |
|---|---|---|---|---|
| $40,000 | $3,167 | $1,596 | $3,060 | $32,177 |
| $60,000 | $6,617 | $2,394 | $4,590 | $46,399 |
| $80,000 | $10,817 | $3,192 | $6,120 | $59,831 |
| $100,000 | $15,617 | $3,990 | $7,650 | $72,743 |
Frequently Asked Questions: Nebraska Taxes
What is Nebraska's income tax rate for 2026?
Nebraska has a flat 3.99% income tax rate for 2026. This is the result of LB 873 (2022), which set a schedule to cut Nebraska's top rate from 6.84% down through 5.84% (2023), 5.20% (2024), 4.55% (2025), and 3.99% flat (2026). It is one of the most aggressive state income tax reductions in recent US history.
How did Nebraska cut its income tax so significantly?
Nebraska Governor Pete Ricketts signed LB 873 in 2022, setting mandatory annual rate reductions culminating in a flat 3.99% rate in 2026. The cuts were not contingent on revenue benchmarks — they were written into law with fixed dates. Nebraska went from a 6.84% top rate to a 3.99% flat rate in just four years.
Does Nebraska have a local income tax?
No. Nebraska cities and counties do not impose a local income tax on wages. Workers in Omaha, Lincoln, Grand Island, and all other Nebraska communities pay only the 3.99% state flat rate and federal income taxes on wages — no local withholding applies.
Does Nebraska tax Social Security benefits?
Nebraska has been phasing out taxation of Social Security benefits. As of 2024, Nebraska exempts Social Security benefits for taxpayers with adjusted gross income below $75,000 (single) or $100,000 (married filing jointly). Above those thresholds, some Social Security income may be taxable. Nebraska is on a path to fully exempt Social Security by 2025 or 2026.
How does Nebraska's 3.99% rate compare to neighboring states?
Nebraska's 3.99% flat rate is now very competitive regionally. It's lower than Minnesota (up to 9.85%), Iowa (3.8% — slightly lower than Nebraska), Missouri (4.8%), and comparable to Kansas (graduated, up to 5.7%). South Dakota and Wyoming (no income tax) are the only neighbors lower. Nebraska's transformation has made it one of the more tax-competitive Midwestern states.
What is Nebraska's minimum wage in 2026?
Nebraska's minimum wage is $13.50/hour in 2026, increased under Initiative 433, which Nebraska voters approved in 2022. The initiative raised the minimum from $9.00/hour in steps to $15.00/hour by 2026. Nebraska's minimum applies statewide — cities cannot set separate higher local minimums under state law.