Nebraska state tax: Overview
Nebraska state tax might not be the most appealing for homeowners. That's because property taxes in Nebraska are higher than the national average. The Cornhusker State also imposes a hefty inheritance tax (for many types of heirs). However, not all taxes in Nebraska are high. For example, some residents will pay less income tax in 2024 due to a gradual reduction of the state's top income tax rate through 2027.
[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Nebraska income taxes
Nebraska Income Taxes: Married filing separately and single filers
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
| Up to $2,999 | 2.46% |
| $3,000 to $17,999 | 3.51% |
| $18,000 to $28,999 | 5.01% |
| More than $28,999 | 5.84% |
Nebraska Income Taxes: Married filing jointly
| Up to $5,999 | 2.46% |
| $6,000 to $35,999 | 3.51% |
| $36,000 to $57,999 | 5.01% |
| More than $57,999 | 5.84% |
Nebraska Income Taxes: Head of household
| Up to $5,599 | 2.46% |
| $5,600 to $28,799 | 3.51% |
| $28,800 to $42,999 | 5.01% |
| More than $42,999 | 5.84% |
Nebraska tax on retirement income: Nebraska no longer taxes Social Security retirement benefits. Military retirement income and Railroad Retirement benefits are tax-exempt.
Nebraska sales tax
Nebraska has a 5.5% state sales tax rate. Localities can add as much as 2%, and the average combined rate is 6.971%, according to the Tax Foundation.
- Groceries are tax-exempt.
- Prescription drugs are tax-exempt.
- Women's menstrual products are tax-exempt.
- Diapers are taxable.
How much are property taxes in Nebraska?
In Nebraska, the average effective property tax rate is 1.67%, which is higher than in most states.
Nebraska Property Tax Breaks for Retirees
Homestead Exemption: Nebraska homeowners 65 and older and those with disabilities may qualify for homestead exemption. The income thresholds for homeowners 65 and older and those who qualify based on disability status differ. Nebraska residents can view the Homestead Exemption Information Guide to see if they qualify.
Nebraska gas taxes (motor fuel)
Gasoline: $0.29 per gallon
Diesel: $0.32 per gallon.
Nebraska taxes on alcohol and tobacco
| Cigarettes | $0.64 per pack |
| Other tobacco products | 20% of wholesale price |
| Beer | $0.31 per gallon |
| Wine | $0.95 per gallon |
| Liquor | $3.75 per gallon |
Nebraska estate and inheritance taxes
Nebraska is one of the six states with an inheritance tax. Spouses are off the hook from paying the tax, but other heirs could get a hefty tax bill.
- Children, parents, siblings and grandparents are subject to a 1% tax on inheritances over $100,000.
- Aunts, uncles, nieces and nephews pay an 11% tax on inheritances over $40,000.
- Other heirs are responsible for a 15% inheritance tax on amounts over $25,000.
Related Content
-
Types of Income the IRS Doesn't TaxIncome Tax It may feel like the IRS taxes most of your hard-earned money, but some types of income are nontaxable.
-
Why You’ll Still Pay Oklahoma Grocery Tax
State Tax Oklahoma is eliminating state grocery taxes, but that doesn’t mean groceries will be tax-free.
-
Last-Minute Tax Savings Guide for 2023
Tax Savings April 15 is weeks away, so it's not too late to save your 2023 taxes.
-
Why You Should Care About Your 2026 Taxes Now
Tax Planning It's not to early to prepare for the possibility that your taxes will go up in 2026.
-
Capital Gains Tax Exclusion for Homeowners: What to Know
Tax Breaks The IRS capital gains home sale exclusion can be a valuable tax-saving tool if you’re eligible.
-
Save During Alabama’s Severe Weather Preparedness Tax Holiday
Sales Tax Holiday Certain items will be tax-free during the Alabama severe weather preparedness sales tax holiday this year, but there are specific rules to follow.
-
Will Your IRS Refund Be Less This Year?
Tax Refunds Data show federal tax refunds are lower this year than last. Will you get less money back from the IRS this tax season?
-
Four Things You Need to Know About Presidents Day and the IRS
Tax Season The weeks surrounding Presidents Day are a particularly busy tax time for the IRS.
