Nebraska collects a state income tax, but has increased the size of its top two brackets. Individual tax rates range from 2.56 percent to 6.84 percent. Details on Nebraska taxes can be found in the tabbed pages below.
Personal income tax
- Nebraska collects income taxes from its residents based on four income brackets.
For single taxpayers:
-- 2.56 percent on the first $2,400 of taxable income.
-- 3.57 percent on taxable income between $2,401 and $17,500.
-- 5.12 percent on taxable income between $17,501 and $27,000.
-- 6.84 percent on taxable income of $27,001 and above.
For married taxpayers filing jointly:
-- 2.56 percent on the first $4,000 of taxable income.
-- 3.57 percent on taxable income between $4,001 and $31,000.
-- 5.12 percent on taxable income between $31,001 and $50,000.
-- 6.84 percent on taxable income of $50,001 and above.
In prior years, when a filer's adjusted gross income reached a certain level, the taxpayer's itemized deductions were reduced. However, effective with the 2006 tax year, the state no longer phases out the standard or itemized deduction or the Nebraska personal exemption credit. - Nebraska tax returns are due on April 15 or the next business day if that date falls on a weekend or holiday.
Sales taxes
- 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.
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 is limited and related to federal estate tax collection. The Nebraska estate tax has been repealed for all dates of death occurring on or after Jan. 1, 2007.
Other Nebraska tax facts
- Nebraska offers a refundable earned income tax credit to individual filers that is equal to 10 percent of the federal earned income tax credit.
- Nebraska taxpayers can e-file several personal and business forms.
- Nebraska does not levy an intangible personal property tax.
For more information, visit the Nebraska Department of Revenue Service Web site.To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.
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