Nebraska is phasing down its income tax under LB 388 (2023). For TY2026, Nebraska uses a four-bracket graduated income tax with rates from 2.46% to 4.55%,reduced from a 5.84% top rate in 2025. The next scheduled reduction brings the top rate to 3.99% for TY2027. Nebraska's standard deduction is $8,850 (single) / $17,700 (MFJ). Social Security benefits are fully exempt from Nebraska income tax since TY2022 (LB 873). Nebraska has no local income taxes and no grocery sales tax.
State Income Tax
2.46% – 4.55%
Standard Deduction (Single)
$8,850
Supplemental Rate
4.55%
Grocery Tax
0% (exempt)
Nebraska Income Tax Brackets 2026
Nebraska's four-bracket schedule is verified from the 2026 Form 1040N-ES rate schedule (Neb. Rev. Stat. 77-2715.03). Married filing separately uses the same thresholds as single. Head of household uses its own thresholds ($7,700 / $39,620 / $59,160). Note: Circular EN (employer withholding tables) uses intentional approximations that differ from these statutory thresholds,see the FAQ below.
Nebraska Taxable Income (Single/MFS)
Rate
$0 – $4,130
2.46%
$4,130 – $24,760
3.51%
$24,760 – $39,900
4.55%
Over $39,900
4.55%
MFJ thresholds: $8,250 / $49,530 / $79,800 (same rates). HoH thresholds: $7,700 / $39,620 / $59,160. The third and fourth brackets both carry the 4.55% rate for TY2026, reflecting the phase-down of two previously distinct upper brackets.
Nebraska Standard Deduction 2026
Nebraska uses its own standard deduction,not the federal amount. For TY2026: $8,850 for single filers (and MFS) and $17,700 for married filing jointly, per the NE DOR Chronology of individual income tax rates and tax tables.
Nebraska Income Tax Phase-Down Schedule
LB 388 (2023) established a multi-year phase-down of Nebraska's top income tax rate. The schedule (per NE Revenue projections): 5.84% (TY2025) › 4.55% (TY2026) › 3.99% (TY2027, scheduled, subject to NE Revenue certification). The bottom bracket rate of 2.46% is not scheduled to change. Once certified, the 2027 rate reduction will be reflected in updated withholding tables. Nebraska also enacted property tax relief alongside this income tax phase-down.
OBBBA Conformity,Nebraska Status Pending
Nebraska has its own income tax code (Neb. Rev. Stat. Chapter 77). No Nebraska DOR guidance confirming OBBBA tips or overtime deduction conformity has been published as of mid-2026. Verify from NE DOR guidance or 2026 Nebraska legislative outcomes when published.
Nebraska Grocery Tax
Nebraska exempts food for home consumption from both state and local sales tax. There is no state grocery tax in Nebraska, and the local sales tax exemption applies statewide as well. This makes Nebraska's effective grocery tax rate 0%.
Nebraska uses a four-bracket graduated income tax for TY2026 with rates of 2.46%, 3.51%, 4.55%, and 4.55%. For single filers, the thresholds are $4,130 / $24,760 / $39,900 / above $39,900. The top rate was reduced from 5.84% (2025) to 4.55% as part of Nebraska's multi-year income tax phase-down under LB 388 (2023). The next scheduled reduction brings the top rate to 3.99% for TY2027 (pending NE Revenue certification).
Why does Nebraska's third and fourth bracket have the same 4.55% rate?
Nebraska's phase-down schedule under LB 388 (2023) reduced two separate former brackets,the third bracket (previously 5.01%) and the top bracket (previously 5.84%),both to 4.55% for TY2026. The statutory structure in Neb. Rev. Stat. 77-2715.03 retains four bracket thresholds for compatibility with the withholding tables, even though the upper two brackets now share the same rate. This collapses to a practical three-rate structure above $24,760 for most single filers.
What is Nebraska's standard deduction for 2026?
Nebraska uses its own standard deduction,not a direct copy of the federal amount. For TY2026, the Nebraska standard deduction is $8,850 for single filers and $17,700 for married filing jointly, per the NE DOR Chronology of individual income tax rates. These amounts are confirmed for 2026 and are significantly lower than the federal standard deduction.
Why does Nebraska's Circular EN withholding table show different bracket amounts?
Nebraska's Circular EN (employer withholding percentage-method tables) uses intentional approximations that differ from the statutory bracket thresholds in Neb. Rev. Stat. 77-2715.03. The withholding tables are designed for payroll efficiency and may not precisely match the exact statutory thresholds. The statutory brackets are the controlling figures for actual tax return calculations,the Circular EN is for payroll withholding estimation only. This discrepancy is by design and does not reflect an error in either document.
Does Nebraska conform to the OBBBA tips and overtime deductions?
Nebraska's OBBBA conformity status is not yet confirmed. Nebraska has its own income tax code (Neb. Rev. Stat. Chapter 77). No Nebraska DOR guidance or 2026 legislative action on OBBBA tips or overtime deduction conformity has been published as of mid-2026. Verify from NE DOR guidance or the 2026 Nebraska legislature outcomes.
Is Social Security taxed in Nebraska?
No,Nebraska fully exempted Social Security benefits from state income tax under LB 873 (2022), effective beginning TY2022. This was a significant change for Nebraska retirees. Other retirement income (pensions, IRA distributions, 401(k) withdrawals) remains fully taxable in Nebraska at the regular graduated rates up to 4.55% for TY2026.
What is Nebraska's income tax phase-down schedule?
Nebraska enacted LB 388 (2023) to phase down income tax rates over multiple years. The top rate was 5.84% in 2025, dropped to 4.55% for TY2026, and is scheduled to fall to 3.99% for TY2027 (subject to NE Revenue certification). The bottom rate of 2.46% and the 3.51% second bracket have remained stable through this phase-down, with only the upper brackets being reduced.
We use cookies for analytics (Google Analytics 4) and advertising (Google AdSense). Your calculator inputs never leave your browser.Learn more
