Nebraska State Income Tax in 2025: A Guide

Nebraska state income tax follows a graduated system, meaning the tax rate increases as your income grows. For the 2024 tax year (the taxes you’ll file in 2025), Nebraska has four tax brackets, with rates ranging from 2.46% to 5.84%. Your tax rate depends on your filing status and how much money you earn.  

Factors like your adjusted gross income (AGI), deductions, and filing status all play a key role in determining how much you owe in taxes. Understanding which tax bracket you fall into is important for planning and maximizing potential savings in the Cornhusker State. 

*Note you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only.

Nebraska state income tax rates

Here’s a chart breaking down Nebraska’s tax brackets and rates for each filing status in 2024. This info can help you estimate your taxes and plan for the upcoming tax season. Remember, Nebraska state income taxes are due on April 15, 2025, aligning with the federal tax deadline.  

Single	Married filing jointly	Head of household	Married filing separately	Tax rate
$0 to $2,999	$0 to $5,999	$0 to $5,599	$0 to $2,999	2.46%
$3,000 to $17,999	$6,000 to $35,999	$5,600 to $28,799	$3,000 to $17,999	3.51%
$18,000 to $28,999	$36,000 to $57,999	$28,800 to $42,999	$18,000 to $28,999	5.01%
$29,000 and over	$58,000 and over	$43,000 and over	$29,000 and over	5.84%

What is the standard deduction in Nebraska?

The standard deduction reduces the amount of income subject to taxation, simplifying the tax process for many taxpayers. Alternatively, itemized deductions require you to list specific expenses—like medical bills, mortgage interest, or charitable contributions. If itemized deductions are greater than your standard deduction, you could potentially reduce your taxable income even further. 

Most taxpayers use the standard deduction because it’s simpler and often larger than their total itemized deductions. But if your itemized deductions exceed the standard deduction, itemizing could help you save more on taxes. 

In Nebraska, the standard deduction amounts for 2024 are: 

• Single: $8,350 
• Married filing separately: $8,350 
• Head of household: $12,250 
• Married filing jointly: $16,700 
• Qualifying Surviving Spouse: $16,700 

Additional deductions are available for taxpayers who are blind or 65 and older.

Who has to file Nebraska state income tax?

You must file Nebraska state income tax if you meet any of these conditions: 

• Nebraska residents: You’re required to file a federal tax return reporting a federal tax liability before applying any applicable credits, or you have $5,000 or more in Nebraska adjustments to your federal adjusted gross income (AGI) for such items as non-Nebraska state or local bond interest. 
• Partial-year residents or nonresidents: You earned income derived from or connected to Nebraska sources. 

How Nebraska residency impacts tax filing

Nebraska recognizes three residency statuses for state tax purposes: resident, partial-year resident, and nonresident. Each status determines how Nebraska taxes your income and whether income from Nebraska or other states is included in your taxable income. 

Below is a breakdown of Nebraska’s residency statuses and how they impact tax filing: 

Residency Status	Definition	How Nebraska Taxes Income
Resident	An individual with a Nebraska domicile or a permanent place of abode in Nebraska for 183 or more days.	All income is taxed, regardless of source.
Partial-year resident	An individual who moves into or out of Nebraska during the tax year.	Taxed on all income while a Nebraska resident and Nebraska-sourced income earned while a nonresident.
Nonresident	An individual without a Nebraska domicile but with income from Nebraska sources.	Taxed only on Nebraska-sourced income.

Other income tax considerations in Nebraska

Nebraska has specific rules for taxing different types of income. Below is an overview of how the state treats certain income sources under its tax laws. 

• Retirement and pension income tax: 
  • Military retirement income is exempt from income tax. 
  • Generally, other forms of retirement income, such as distributions from pensions and 401(k) plans, are subject to Nebraska state income tax. 
• Investment income tax: Nebraska taxes capital gains at the same rate as personal income. 
• Social Security income tax: 80% of Social Security benefits are exempt for 2024, with a 100% exemption by the 2025 tax year (the taxes you’ll file in 2026). 
• Military income tax: 
  • Nebraska resident servicemembers must file a state return if required to file federally. 
  • Military pay earned by nonresident servicemembers stationed in Nebraska is exempt from Nebraska state income tax.

Common Nebraska state tax deductions and credits

Nebraska offers several state-specific tax credits to support families, homeowners, volunteers, and those experiencing unique circumstances. Below is a summary of some tax credits available to Nebraska taxpayers. 

Tax credit	Description	Amount
Child Care Tax Credit Act	Refundable credit for parents/guardians of children 5 years old or younger if their child is enrolled in a licensed child care program. This credit is subject to household income limits.	$2,000 per child if the total household income is no more than $75,000. $1,000 per child if the total household income is more than $75,000 but no more than $150,000.
Designated Extremely Blighted Area Credit	Credit for individuals buying a primary residence in a designated extremely blighted area.	$5,000.
Nebraska Earned Income Credit (EIC)	Credit equal to 10% of federal EIC for eligible residents and partial-year residents.	10% of federal EITC; maximum federal EITC for 2024 is $7,830.
Credit for Qualified Volunteer Responders	Tax credit for volunteer firefighters, emergency responders, or rescue squad members with annual certification.	$250.
Stillborn Child Tax Credit	Credit for parents of a stillborn child who advanced to at least 20 weeks of gestation.	$2,000.

How to file Nebraska state income tax

Navigating Nebraska’s tax brackets, deductions, and credits might seem overwhelming—but filing your 2024 taxes doesn’t have to be. TurboTax makes it simple, whether you prefer to file on your own or work with a tax professional. 

With TurboTax, you can confidently file your Nebraska state return knowing you’re getting every deduction and credit you qualify for. Our expert-backed platform guides you, helping residents, partial-year residents, and nonresidents meet Nebraska’s tax requirements.  

Want extra help? TurboTax connects you with tax experts who understand Nebraska’s tax laws and can even file for you.