Nebraska Tax Calculator 2025
Calculate your Nebraska state income tax with our comprehensive 2025 calculator featuring the Cornhusker State's progressive tax rates from 2.46% to 6.84%, agricultural benefits, and advanced tax planning tools for Nebraska's farming and business economy.
Calculate Your Nebraska Tax
Enter your income information to calculate Nebraska's progressive state income tax with rates ranging from 2.46% to 6.84% plus applicable deductions and Cornhusker State considerations.
Nebraska Tax Structure 2025
Nebraska operates a progressive income tax system with rates ranging from 2.46% to 6.84%, making it moderately competitive in the Midwest region. The Cornhusker State provides benefits for retirees, military veterans, and agricultural workers.
NE Progressive Tax Brackets (2025)
- 2.46% on income up to $3,340 (single) / $6,680 (joint)
- 3.51% on income $3,341-$19,990 (single) / $6,681-$39,990 (joint)
- 5.01% on income $19,991-$32,210 (single) / $39,991-$64,430 (joint)
- 6.84% on income over $32,210 (single) / $64,430 (joint)
Standard Deductions (2025)
- Single: $7,700
- Married Filing Jointly: $15,400
- Married Filing Separately: $7,700
- Head of Household: $11,550
Nebraska Tax Benefits and Cornhusker State Advantages
Nebraska provides moderate tax benefits, particularly for retirees, military veterans, and agricultural workers. The state's central location and agricultural economy create specific tax advantages.
- Personal Exemption: $158 per taxpayer and qualifying dependent
- Military Retirement Exemption: Full exemption for military retirement pay
- Social Security Partial Exemption: Partial exemption for low-income retirees
- Retirement Income Deduction: Deductions for taxpayers 60+ following federal limits
- Agricultural Benefits: Special treatment for farm income and equipment
- Standard Deduction: Reasonable standard deductions for all filing statuses
- Property Tax Credits: Various property tax relief programs available
Nebraska Residency and Agricultural Tax Planning
Understanding Nebraska residency requirements and agricultural tax planning strategies is important given the state's farming economy and central location.
Establishing NE Residency
Nebraska considers you a resident if you are domiciled in Nebraska or you maintain a permanent place of abode in Nebraska and spend more than 183 days in the state during the tax year.
Agricultural Tax Advantages
Nebraska's agricultural economy benefits from special property tax treatment for agricultural land, sales tax exemptions for farm equipment, and various agricultural income deductions.
Retirement Planning
Nebraska is moderately retirement-friendly with partial Social Security exemption for low-income retirees, military retirement pay exemption, and retirement income deductions.
Business Considerations
Nebraska offers competitive corporate tax rates, various business incentives, and reasonable individual tax rates for business owners and entrepreneurs.
Frequently Asked Questions
What are Nebraska's income tax rates for 2025?
Nebraska has progressive income tax rates ranging from 2.46% to 6.84% for 2025. The rates increase across four brackets, with the top rate of 6.84% applying to income over $32,210 for single filers and $64,430 for joint filers.
Is Nebraska tax-friendly for retirees?
Nebraska is moderately retirement-friendly with partial Social Security exemption for low-income retirees, military retirement pay exemption, and retirement income deductions for taxpayers 60 and older up to federal limits.
What is Nebraska's sales tax rate?
Nebraska has a state sales tax rate of 5.5%, with local jurisdictions able to add additional sales tax, resulting in combined rates typically ranging from 5.5% to 7.5% depending on location.
Does Nebraska tax agricultural income?
Nebraska taxes agricultural income as ordinary income at the same progressive rates (2.46%-6.84%), but provides various agricultural deductions, equipment exemptions, and special treatment for qualifying farming operations.
What deductions are available for Nebraska taxpayers?
Nebraska offers standard deductions, personal exemptions, agricultural deductions, military retirement exemption, Social Security partial exemption, and various business deductions for qualifying activities.
How does Nebraska compare to neighboring states for taxes?
Nebraska has moderate tax rates compared to neighboring states. It's higher than South Dakota's no income tax but generally competitive with Iowa and Kansas, and lower than many coastal states.