Personal income tax
Nebraska collects income taxes from its residents based on four income brackets.
For single taxpayers:
- 2.46 percent on the first $3,000 of taxable income.
- 3.51 percent on taxable income between $3,001 and $18,000.
- 5.01 percent on taxable income between $18,001 and $29,000.
- 6.84 percent on taxable income of $29,001 and above.
For married taxpayers filing jointly:
- 2.46 percent on the first $6,000 of taxable income.
- 3.51 percent on taxable income between $6,001 and $36,000.
- 5.01 percent on taxable income between $36,001 and $58,000.
- 6.84 percent on taxable income of $58,001 and above.
If adjusted gross income is more than $254,200 (single), $305,050 (married, filing jointly and surviving spouse), $152,525 (married, filing separately), or $279,650 (head of household), also use the 2014 Nebraska Additional Tax Rate Schedule to calculate added tax liability.
Effective Jan. 1, 2015, individual income tax brackets will be adjusted annually for inflation.
Nebraska tax returns are due April 15 or the next business day if that date falls on a weekend or holiday.
Nebraska has a state sales tax of 5.5 percent.
In addition to the state tax, some Nebraska cities assess a city sales and use tax, up to a maximum of 1.5 percent.
As of Jan. 1, 2014, there are no longer any counties in Nebraska that impose a sales tax.
Personal and real property taxes
All real property located within the state of Nebraska is taxable unless specifically exempted by statute.
County assessors compute the value of property within their jurisdictions, but are subject to the supervision of the Property Tax Administrator. Each county board of equalization must equalize the valuation of individual tracts, lots or parcels of real property in the county. Personal property is to be valued and taxed on the basis of depreciated cost with reasonable class lives, to be determined by the legislature.
Nebraska offers a homestead exemption for property owners. To receive it, taxpayers must submit an Application or Certification of Status, Form 458, to their county tax assessor.
Inheritance and estate taxes
Inheritance tax is collected at the county level.
Nebraska's estate tax was limited and related to federal estate tax collection, but it opted to decouple from the federal law and collected an estate tax on estates of persons who died between July 1, 2003, and Dec. 31, 2006. Nebraska lawmakers subsequently repealed the state's estate tax effective Jan. 1, 2007.
Other Nebraska tax facts
Nebraska offers a Beginning Farmer Credit to help residents get a start in farming and ranching.
Nebraska taxpayers e-file several personal and business forms.
Nebraska does not levy an intangible personal property tax.