NEBRASKA PAYCHECK CALCULATOR

Our Nebraska Paycheck Calculator 2026 gives Cornhusker State workers a precise, verified breakdown of every paycheck after all mandatory deductions. Nebraska’s income tax is in the middle of the most consequential transformation in state history: LB 754 (2023), signed by Governor Jim Pillen, set a phased reduction schedule that dropped the top rate to 4.55% in 2026 — down from 5.2% in 2025 — with a final destination of 3.99% in 2027. What was once a four-bracket progressive system has effectively become a flat tax for virtually all Nebraska wage earners.

Nebraska’s 2026 tax structure is straightforward: one flat rate of 4.55% applies to all Nebraska taxable income after a generous standard deduction of $8,850 (Single) or $17,700 (Married Filing Jointly). A personal exemption credit of $176 per exemption then directly reduces the tax owed. No city, no county, and no municipality in Nebraska levies a local income tax, making paycheck math uniform whether you work in Omaha, Lincoln, Grand Island, or a sandhills ranch.

See how Nebraska compares to Great Plains and Midwest neighbors at our USA Paycheck Calculator hub, or jump directly to Iowa, Kansas, South Dakota, or Colorado.

Every Deduction on a Nebraska Paycheck in 2026

Nebraska keeps paycheck deductions to the absolute minimum. No state disability insurance, no paid family leave contribution, no city or county income tax anywhere in the state. Whether you work for a tech company in Omaha's Aksarben corridor, a meatpacking plant in Lexington, a farm operation in the Sandhills, or the University of Nebraska in Lincoln — every Nebraska worker sees the same four deductions:

• Federal Income Tax — Calculated using the 2026 progressive federal schedule (10%–37%) after the federal standard deduction. Single filers deduct $16,100, MFJ filers deduct $32,200, and HOH filers deduct $24,150 before federal brackets apply.
• Social Security — 6.2% of gross wages up to the 2026 annual wage base of $176,100. Wages above this ceiling are Social Security-exempt for the remainder of the calendar year.
• Medicare — 1.45% on all earned income with no cap. An additional 0.9% Medicare surtax applies to individual wages exceeding $200,000 per year.
• Nebraska State Income Tax — A flat 4.55% rate on Nebraska taxable income (gross wages minus the state standard deduction), minus the $176 personal exemption credit ($352 for MFJ).

Nebraska Income Tax Rate 2026 — The LB 754 Flat Tax

Nebraska's old four-bracket progressive system — with rates of 2.46%, 3.51%, 5.01%, and 5.20% — has effectively been replaced by a single rate for 2026. Here is how the transformation unfolded under LB 754:

In 2026, the third and fourth brackets — previously 5.01% and 5.20% respectively — have both been consolidated to the same 4.55% rate as confirmed by Neb. Rev. Stat. § 77-2715.03(2)(c)(v). Since most Nebraska wage earners' income lands entirely in these upper brackets after the standard deduction, 4.55% is effectively a flat rate for the vast majority of workers.

NE Taxable = $70,000 − $8,850 (std ded) = $61,150
$61,150 × 4.55% = $2,782.33
Less personal exemption credit = −$176.00
Total NE State Tax = $2,606.33

Nebraska Standard Deduction 2026

Nebraska's standard deduction is a fixed dollar amount, adjusted annually for inflation. For tax year 2026, the deduction amounts are:

Workers over 65 or who are blind receive an additional standard deduction: $2,050 for Single/HOH filers, or $1,700 per qualifying spouse for Married filers. These additional amounts are per qualifying condition — both age and blindness together add double the single amount.

Nebraska also allows taxpayers to itemize deductions using their federal itemized amounts, minus the state and local income tax deduction (since Nebraska taxes are not deductible against themselves). The standard deduction versus itemization calculation mirrors the federal decision logic, and for most wage earners without significant mortgage interest or charitable giving, the standard deduction is the larger figure.

Nebraska Personal Exemption Credit 2026

Nebraska's personal exemption works differently from most states. Rather than reducing taxable income, it functions as a nonrefundable tax credit that directly reduces the tax owed — which is more valuable to lower-income workers than an income deduction would be.

The $176 credit value is adjusted annually for inflation. Additional exemption credits are available for each dependent claimed — so families with children receive $176 per dependent on top of the base credit, further reducing the final Nebraska income tax bill.

Nebraska vs Great Plains & Midwest Neighbors — Take-Home at $70,000

Nebraska's flat 4.55% rate in 2026 places it in a competitive position among its peer states. Here is how the region stacks up on $70,000 gross income filing as Single:

Nebraska's $2,606 state tax at $70,000 Single puts it near the middle of the regional pack. It is more competitive than Kansas ($3,080) and far below Minnesota ($4,250), while coming in slightly above Colorado ($2,420) and Iowa ($2,320). Against the no-income-tax neighbors South Dakota and Wyoming, Nebraska workers at $70,000 pay approximately $2,606 more per year in state income tax — about $217 per month.

Once LB 754 reaches its 3.99% destination in 2027, Nebraska will close that gap further. At 3.99% and a $70,000 salary, state tax will fall to approximately $2,429 — making Nebraska one of the most tax-competitive income states in the Midwest.

Nebraska's LB 754 Reform — The Full Story

Nebraska's income tax reform predates LB 754 — the state had been cutting rates gradually since 2012 under LB 970. But the 2023 passage of LB 754, championed by Governor Jim Pillen, represented the largest single commitment to income tax reduction in Nebraska history. The bill locked in a four-year phase-down schedule with specific statutory rates for each year, removing the cuts from the annual political process and guaranteeing workers could plan around a known trajectory.

LB 754 also included two landmark provisions beyond the rate cuts:

• Full Social Security exemption (effective 2025): Nebraska now fully exempts Social Security benefits from state income tax. This was phased in — 60% exempt in 2023, 80% in 2024, 100% from 2025 onward. Nebraska retirees on Social Security owe zero state tax on those benefits.
• Military retirement income exemption: Enacted under LB 387 (2021) and carried forward, all military retirement pay is fully exempt from Nebraska income tax — a significant benefit for the large veteran population in the Omaha and Lincoln metro areas near Offutt Air Force Base.

2026 Federal Tax Brackets for Nebraska Workers

Federal income tax applies uniformly to all Nebraska employees. For 2026, the IRS increased standard deduction amounts significantly following the One Big Beautiful Bill Act (OBBBA): Single filers now deduct $16,100 (up from $15,000 in prior guidance), MFJ filers deduct $32,200, and HOH filers deduct $24,150. After those deductions, Single filer taxable income passes through these federal tiers:

• 10% on the first $11,925 of federal taxable income
• 12% from $11,925 to $48,475
• 22% from $48,475 to $103,350
• 24% from $103,350 to $197,300
• 32% from $197,300 to $250,525
• 35% from $250,525 to $626,350
• 37% on federal taxable income above $626,350

Nebraska Paycheck Calculator FAQs

What is Nebraska's income tax rate in 2026?
Nebraska applies a flat 4.55% to all Nebraska taxable income in 2026. This is a reduction from 5.2% in 2025, enacted under LB 754 (2023). The same 4.55% rate applies regardless of income level or filing status — Single, MFJ, and HOH all pay the same rate on their Nebraska taxable income after the standard deduction.

How does Nebraska's personal exemption credit work?
Nebraska's personal exemption of $176 (2026) functions as a nonrefundable tax credit, not an income deduction. It directly reduces your Nebraska tax owed by $176 per exemption. Married couples filing jointly claim two exemptions for a $352 credit. Each qualifying dependent adds another $176 credit. This credit structure is especially valuable for lower-income workers since the savings are fixed regardless of tax bracket.

How much will I take home on a $70,000 salary in Nebraska?
Filing as Single on $70,000, your Nebraska taxable income is $61,150 after the $8,850 standard deduction. At 4.55%, that produces $2,782 in state tax, reduced by the $176 exemption credit to $2,606. Combined with approximately $6,593 in federal income tax (using the 2026 $16,100 standard deduction) and $5,355 in FICA, estimated annual take-home is about $55,446, or roughly $4,620 per month.

Does Nebraska have any local income taxes?
No. Nebraska does not permit any city, county, or local government to levy an income tax on wages. Workers in Omaha, Lincoln, Grand Island, Kearney, Bellevue, or any other community pay only the statewide 4.55% — there is no local surcharge.

Is Social Security taxed in Nebraska in 2026?
No. Since 2025, Nebraska fully exempts 100% of Social Security benefits from state income tax under LB 754. This followed a phase-in: 60% exempt in 2023, 80% exempt in 2024, and 100% exempt from 2025 onward. Nebraska retirees receiving Social Security pay no state income tax on those benefits at all.

When does Nebraska reach the 3.99% final rate?
Nebraska's income tax is scheduled to reach its 3.99% permanent rate beginning January 1, 2027 — the final step in the LB 754 phase-down. Once in effect, Nebraska will have one of the lowest flat income tax rates in the Midwest, below Iowa's 3.8% flat rate and competitive with states across the region.

Run your Nebraska estimate again any time: Nebraska Paycheck Calculator 2026