NE

Nebraska Paycheck Calculator

See exactly what you take home after federal taxes, Nebraska state income tax, Social Security, and Medicare. Updated for 2026.

State tax: 6.84% SS: 6.2% Medicare: 1.45% 2026 brackets
$
Annual take-home pay
—
Per paycheck
—
Total taxes
—
Effective rate
—
Tax breakdown
1099 freelancer note: You owe both halves of Social Security & Medicare — that's 15.3% self-employment tax on top of income tax. Quarterly estimated payments due Apr 15, Jun 16, Sep 15, Jan 15.
Nebraska state income tax (2026) Nebraska top rate is 6.84% for income over $35,730.
$0–$3,700: 2.46%, $3,700–$22,170: 3.51%, $22,170–$35,730: 5.01%, over $35,730: 6.84%

Nebraska Income Tax Explained (2026)

Nebraska has a state income tax with a progressive (2.46%–5.84% in 2026) structure. Workers earning typical wages generally pay an effective state rate between 3.4% and 6.8% depending on income and deductions. Understanding how Nebraska's tax works helps you accurately predict your take-home pay and plan your withholding.

Nebraska residents also pay federal income tax (10%–37%), Social Security (6.2% up to $184,500), and Medicare (1.45%). The combination of federal and state taxes is the primary driver of the gap between your gross pay and your actual paycheck.

How Nebraska compares to neighboring states

Iowa
~3.8% flat
Lower
Kansas
Up to 5.7%
Lower
South Dakota
No income tax
Zero tax
Wyoming
No income tax
Zero tax

What taxes come out of a Nebraska paycheck?

A Nebraska W-2 employee's paycheck is reduced by federal income tax (progressive 10%–37%), Nebraska state income tax (progressive (2.46%–5.84% in 2026)), Social Security at 6.2% on wages up to $184,500, and Medicare at 1.45% on all wages. High earners above $200,000 also pay an additional 0.9% Medicare surtax on excess wages.

Nebraska freelancers and 1099 contractors pay self-employment tax of 15.3% — covering both employee and employer portions of Social Security and Medicare — on top of both federal and state income taxes. Half of the self-employment tax is deductible from federal adjusted gross income, reducing the effective burden slightly. Nebraska freelancers must also make quarterly estimated state tax payments.

Nebraska tax tips for 2026

  • Rate reductions: Nebraska has been cutting its income tax rates significantly. The top rate is dropping from 6.84% to 5.84% by 2024, with further reductions planned through 2027 targeting 3.99%.
  • Standard deduction: Nebraska conforms to federal standard deduction amounts ($13,850 single / $27,700 married in 2026).
  • Retirement income: Nebraska taxes Social Security income but is phasing in a full exemption. By 2025, Social Security is expected to be 100% exempt from Nebraska state income tax.
  • Estimated taxes: Nebraska requires quarterly estimated payments if you expect to owe more than $500. Use Nebraska Form 1040N-ES.

Frequently asked questions

Nebraska has been dramatically cutting its rates as part of major tax reform. For 2026, Nebraska's top rate is expected to be approximately 5.2%–5.84% (down from 6.84% in 2023), with the goal of reaching 3.99% by 2027. Nebraska has four brackets, with the top rate applying to income above ~$36,000 for single filers.
For a single filer earning $75,000 in Nebraska in 2026, after the ~$13,850 standard deduction, state income tax is approximately $2,800–$3,200 depending on the current year's rate schedule. Combined with federal tax (~$10,294), Social Security ($4,650), and Medicare ($1,088), total deductions are ~$19,232. Take-home is approximately $55,768/year or ~$2,145 bi-weekly.
Nebraska has been phasing out its tax on Social Security benefits. Starting in 2024, 100% of Social Security benefits are exempt from Nebraska state income tax, regardless of income level. This is a major improvement for retirees in Nebraska and removes a burden that previously affected many fixed-income households.
Nebraska's ongoing rate cuts are making it increasingly competitive with neighboring states. The planned reduction to 3.99% by 2027 would put Nebraska well below Kansas (5.7%) and Iowa (3.8%), and not far above South Dakota and Wyoming (both 0%). The tax reform is intended to attract businesses and workers to Nebraska by improving its relative tax competitiveness.
← Back to full calculator & all states