Nebraska Tax Overview
Nebraska has a four-bracket progressive income tax with a top rate of 5.64%, which has been gradually declining from 6.84% under recent tax reform legislation. The state is phasing in a reduction of taxes on Social Security benefits and has moderately high property taxes. Nebraska eliminated its inheritance tax on immediate family members in recent years.
Nebraska Tax Quick Facts (2026)
| Income Tax | progressive (top rate: 5.6%) |
| Sales Tax (State) | 5.50% |
| Property Tax (Avg Effective) | 1.52% |
| Median Household Income | $69,957 |
| Capital | Lincoln |
| Population | 2.0 million |
Nebraska Income Tax Brackets (2026)
| Income Range | Tax Rate |
|---|---|
| $0 — $3,700 | 2.46% |
| $3,700 — $22,170 | 3.51% |
| $22,170 — $35,730 | 5.01% |
| $35,730+ | 5.64% |
Frequently Asked Questions About Nebraska Taxes
Does Nebraska have a state income tax?+
Yes, Nebraska has a progressive income tax system with a top marginal rate of 5.6%.
What is the property tax rate in Nebraska?+
The average effective property tax rate in Nebraska is approximately 1.52% of assessed home value. On a $300,000 home, that is about $4,560 per year.
What is the sales tax rate in Nebraska?+
The state sales tax rate in Nebraska is 5.50%. Local jurisdictions may add additional sales tax.
What is the median household income in Nebraska?+
The median household income in Nebraska is approximately $69,957 per year.
How does Nebraska's tax burden compare to other states?+
Nebraska's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.