Nebraska paycheck taxes at a glance
| Income tax on wages | Progressive, 2.46% – 4.55% |
|---|---|
| Standard deduction | $8,850 single · $17,700 married filing jointly |
| Personal exemption credit | $176 single · $352 joint · $176 per dependent |
| Minimum wage (2026) | $15.00 an hour (employers with 4 or more employees; tipped employees $2.13 an hour plus tips) |
2026 Nebraska income tax brackets (single filers)
| Taxable income | Rate |
|---|---|
| $0 – $4,129 | 2.46% |
| $4,130 – $24,759 | 3.51% |
| $24,760 and up | 4.55% |
Example: a $81,600 salary in Nebraska
The median household income in Nebraska is about $81,614 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $3,138.46 |
|---|---|
| Federal income tax | −$350.85 |
| Social Security | −$194.58 |
| Medicare | −$45.51 |
| Nebraska income tax | −$108.97 |
| Take-home pay | $2,438.55 |
That's $63,402 a year in take-home pay, or 22.3% of gross pay going to taxes.
Take-home pay by salary in Nebraska
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State taxes | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,283.83 | $33,380 | $940 | 16.6% |
| $60,000 | $1,866.91 | $48,540 | $1,850 | 19.1% |
| $80,000 | $2,398.06 | $62,350 | $2,760 | 22.1% |
| $100,000 | $2,904.21 | $75,510 | $3,670 | 24.5% |
| $150,000 | $4,147.91 | $107,846 | $5,945 | 28.1% |
| $200,000 | $5,411.79 | $140,707 | $8,220 | 29.6% |
What changed for 2026
- The top rate fell from 5.20% to 4.55%. For 2026 the third and fourth brackets share the same 4.55% rate, so a single filer pays 4.55% on every dollar of taxable income above $24,760.
- The minimum wage rose from $13.50 to $15.00 an hour on January 1, 2026.
- LB 258 (2026) created a $13.50 youth minimum wage for 14- and 15-year-olds, effective July 18, 2026. It also sets the regular minimum wage to rise by 1.75% each January 1 starting in 2027.
Nebraska pay rules worth knowing
- Employers pay on regular paydays they designate and must give 30 days' written notice before changing them.
- When you leave a job, your final wages are due on the next regular payday or within two weeks of your last day, whichever is sooner. Earned but unused vacation or PTO is owed as wages.
Nebraska’s rate cuts, year by year
Nebraska law sets out a schedule of cuts to the top income tax rate:
| Tax year | Top rate |
|---|---|
| 2024 | 5.84% |
| 2025 | 5.20% |
| 2026 | 4.55% |
| 2027 and later | 3.99% |
For 2026, the cut also erased the gap between the top two brackets, which now share the 4.55% rate. For a single filer, the lower rates of 2.46% and 3.51% apply only to the first $24,760 of taxable income, so most full-time workers pay 4.55% on their last dollars of income.
Nebraska builds taxable income from your federal adjusted gross income, minus a Nebraska standard deduction that’s smaller than the federal one. Personal exemptions come off later, as a credit against the tax rather than a deduction.
Retirement income and Social Security
Since the 2024 tax year, Nebraska has fully exempted Social Security benefits from state income tax. If you’re near retirement, your paychecks are still taxed at the rates above, but the benefits you collect later won’t be. That can make a difference if you’re comparing Nebraska with a neighboring state for retirement.
Property tax credits on your income tax return
Nebraska homeowners and other property owners can claim a credit on their state income tax return for community college property taxes paid, using Form PTC. The Department of Revenue’s Property Tax Look-up Tool helps you find the amount. The credit doesn’t change your paycheck, but it lowers the tax due when you file.
The minimum wage after LB 258
Nebraska’s minimum wage reached $15.00 on January 1, 2026, the final step of the schedule in state law. A 2026 law, LB 258, then changed what comes next:
- Fixed raises. Starting January 1, 2027, the minimum rises by 1.75% each year. The Department of Labor must publish each new rate by October 15.
- Youth wage. Since July 18, 2026, employers may pay 14- and 15-year-olds $13.50 an hour.
Tipped employees can still be paid a $2.13 cash wage, as long as tips bring them up to the full minimum.
The salary calculator converts an hourly wage into annual pay, and the income tax calculator estimates your full-year federal tax.
Estimates only. Your employer’s payroll system, your W-4 and W-4N determine your actual paycheck.
Sources
- Nebraska Department of Labor: Wages fact sheet
- U.S. Department of Labor: State minimum wage laws
- Nebraska Revised Statute 48-1203: Minimum wage
- Nebraska Legislature: LB 258 (2026), slip law
- Nebraska Revised Statute 48-1230: Paydays and final wages
- Nebraska Revised Statute 77-2715.03: Income tax rates
- Nebraska Revised Statute 77-2716: Adjustments (Social Security subtraction)
- Nebraska Department of Revenue: Income tax withholding forms
- Nebraska Department of Revenue: Property Tax Incentive Act credit
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- revenue.nebraska.gov
- IRS Publication 15-T (federal withholding)
Frequently asked questions
Does Nebraska tax Social Security benefits?
No. Starting with the 2024 tax year, Nebraska subtracts 100% of the Social Security benefits included in your federal adjusted gross income. That matters most for retirees, but it also helps a working household where one spouse already draws benefits.
Will Nebraska take less from my paycheck in 2027?
The top rate is set by law to fall from 4.55% to 3.99% for 2027. The Department of Revenue has already posted a new Circular EN, its withholding guide, for wages paid on or after January 1, 2027.
Can Nebraska employers pay teenagers less than $15.00?
Yes, in some cases. Since July 18, 2026, employers may pay a youth minimum wage of $13.50 an hour to 14- and 15-year-olds who aren't emancipated minors. Student-learners in a bona fide vocational training program can be paid at least 75% of the regular minimum.
What is Nebraska's personal exemption credit?
Nebraska doesn't give personal exemptions as deductions. Instead, it subtracts a credit of $176 for each personal exemption from your tax for 2026. A single filer with no dependents claims one, worth $176 a year.
How much are tipped workers paid in Nebraska?
Employers may pay a cash wage of $2.13 an hour to employees who receive tips. Wages plus tips must reach at least the $15.00 minimum, and the employer has to make up any shortfall.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.