Nebraska Income Tax Calculator 2026 — 4 Brackets, 5.84% Top

Calculate your 2026 Nebraska state income tax across 4 brackets (2.46%–5.84%). Federal standard deduction, personal exemption credits, rate reform timeline and bracket detail.

$
= $5,417 / month
Common salaries:
$0
Nebraska State Tax (2026)
0%
NE Effective Rate
0%
NE Marginal Rate
$0
Est. Annual Take-Home

Nebraska Tax Calculation Breakdown (2026)

Nebraska Bracket-by-Bracket Detail

BracketRateIncome TaxedTax

Nebraska Income Tax 2026 — Rates and Reform

Nebraska's 4-bracket system taxes income progressively from 2.46% to 5.84%. Nebraska conforms to the federal standard deduction ($16,100 single / $32,200 MFJ for 2026), making the effective starting point for state tax higher than many states. The personal exemption credit reduces tax owed directly.

Calculation Formula

NE Taxable Income = Gross Income − Federal Standard Deduction
NE Tax (brackets) = Apply 2.46% / 3.51% / 5.01% / 5.84% progressively
Personal Exemption Credit = $159 × (taxpayers + dependents)
NE Tax Final = max(0, Bracket Tax − Exemption Credits)

Example: Single filer, $65,000, 1 dependent

NE Taxable: $65,000 − $15,000 = $50,000
2.46% on $3,700 = $91
3.51% on $18,470 ($22,170−$3,700) = $648
5.01% on $13,560 ($35,730−$22,170) = $679
5.84% on $14,270 ($50,000−$35,730) = $833
Bracket total: $2,251 | Exemption credit: 2 × $159 = $318
NE Tax: $2,251 − $318 = $1,933 | Effective rate: 2.97%
Extended

Nebraska Rate Reform Timeline

See how Nebraska's top rate has fallen and what future reductions mean for your tax bill

Nebraska's top rate has been declining steadily. Here's how past and projected rates affect your tax bill at your entered income.

Tax YearTop RateEst. NE Taxvs 2026

Future year estimates assume only the top bracket rate changes. Revenue trigger reductions are projected; actual reductions depend on Nebraska revenue benchmarks being met each year.

Frequently Asked Questions

What are Nebraska's income tax brackets for 2026?
Nebraska uses 4 graduated brackets for 2026: 2.46% on the first $3,700 ($7,400 MFJ), 3.51% from $3,700–$22,170 ($7,400–$44,340 MFJ), 5.01% from $22,170–$35,730 ($44,340–$71,460 MFJ), and 5.84% on income above $35,730 ($71,460 MFJ). Nebraska is on a scheduled rate-reduction path toward a long-term lower top rate.
Does Nebraska conform to federal standard deduction amounts?
Yes, Nebraska mirrors the federal standard deduction. For 2026 that means $16,100 for single filers and $32,200 for married filing jointly. Nebraska also allows a personal exemption credit of $159 per taxpayer and each dependent (adjusted periodically by the Legislature).
What is Nebraska's rate reform timeline?
Nebraska's LB 873 (2022) and subsequent legislation put the state on a glide path to reduce the top rate. The top rate was 6.84% in 2022, dropped to 5.84% in 2024, and further reductions are triggered when revenue benchmarks are met — with a long-term target near 3.99%. The timeline depends on state revenue performance each year.
Are Social Security benefits taxed in Nebraska?
Nebraska is phasing out the state taxation of Social Security benefits. For 2026, a significant portion — ultimately 100% — of federally taxable Social Security income is excluded from Nebraska taxable income. Retirees should check the current-year exclusion percentage, which has been increasing annually under LB 825.
How does Nebraska handle the personal exemption credit?
Nebraska provides a personal exemption credit (not a deduction) of approximately $159 per taxpayer and dependent. A single filer with no dependents gets a $159 credit; a married couple with 2 children gets $636 in credits. This credit directly reduces Nebraska tax owed after the bracket calculation.