Nebraska income tax goes up to 4.55% at the top bracket. Calculate your combined federal + state effective tax rate for 2026. Formula shown, sources cited — no account required.
Nebraska uses a graduated income tax with multiple brackets leading to a current top rate of 4.55%, which is scheduled to decline further in coming years as part of the state's ongoing tax reform. The structure steps through lower rates at the bottom of the income scale, with the top bracket kicking in above about $33,180 for single filers. For the median household at $76,376, a significant portion of income falls near or at the top rate before deductions. Nebraska conforms closely to federal adjusted gross income as the starting point for its own calculation, which simplifies the filing process but also means most federal deductions carry through to the state return. Retirement income, including IRA withdrawals and pensions, is fully taxable at current rates, though Social Security is being phased out of taxation. On the federal side, Nebraska's median earner typically lands in the 22% bracket, pushing the combined marginal rate to about 26.55%. Nebraska's high property taxes are not deductible at the state level, though they are on the federal return for itemizers. Use the tax bracket calculator to see how Nebraska's current brackets apply to your income.
Nebraska Tax Brackets Explained (2026)
Nebraska has a state income tax with a top marginal rate of 4.55%. On top of federal rates (10%–37%), residents can face a combined marginal rate exceeding 35% at higher income levels. However, your effective rate is always lower than the marginal rate because only income above each threshold is taxed at that bracket's rate.
The median household in Nebraska earns $76,376/year. At that income (single filer), the federal effective rate is approximately 12–14%, bringing total income tax (federal + state) to roughly 15–17%.
How Marginal vs. Effective Rate Works
The marginal rate is the rate on your last dollar of income — it does not apply to all income. The effective rate is your total tax divided by total income. For example, someone earning $100,000 in Nebraska has a 22% federal marginal rate but an effective federal rate of roughly 15%, because the first $44,725 (2024) is taxed at 10% and 12%, not 22%.