Enter your pay details below to estimate your Nebraska take-home pay using the 2026 tax rates. Nebraska cut its top income tax rate on January 1, 2026, so if your paycheck looks different this year than last year, this is why.
Quick answer: what comes out of a Nebraska paycheck calculator
| Deduction |
2026 Rate |
Applies To |
| Federal income tax |
10 percent to 37 percent, graduated |
Taxable wages after your Form W-4 elections |
| Nebraska state income tax |
2.46 percent, 3.51 percent, or 4.55 percent |
Nebraska taxable income, per Form W-4N |
| Social Security (OASDI) |
6.2 percent |
First $184,500 of wages |
| Medicare |
1.45 percent |
All wages, no cap |
| Additional Medicare |
0.9 percent |
Wages above $200,000 single, $250,000 joint, $125,000 married filing separately |
| Nebraska local income tax |
0 percent |
No Nebraska city or county levies one |
| Nebraska state disability insurance |
0 percent |
Nebraska has no SDI program |
The maximum Social Security tax any single employer will withhold in 2026 is $11,439. Once your year-to-date wages with that employer pass $184,500, the 6.2 percent line stops, and your paychecks get larger for the rest of the year.
Nebraska income tax rates and brackets for 2026
Nebraska is in the middle of a legislated rate reduction. Under LB 873 of 2022 and LB 754 of 2023, the top marginal rate has been stepping down each year: 5.84 percent in 2024, 5.20 percent in 2025, 4.55 percent in 2026, and a scheduled 3.99 percent in 2027.
For tax year 2026, the top two brackets are both set at 4.55 percent, so in practice Nebraska now has three effective rates.
Single filers and married filing separately
| Nebraska Taxable Income |
Rate |
| $0 to $4,130 |
2.46 percent |
| $4,130 to $24,760 |
3.51 percent |
| Above $24,760 |
4.55 percent |
Married filing jointly
| Nebraska Taxable Income |
Rate |
| $0 to $8,250 |
2.46 percent |
| $8,250 to $49,530 |
3.51 percent |
| Above $49,530 |
4.55 percent |
Head of household
| Nebraska Taxable Income |
Rate |
| $0 to $7,700 |
2.46 percent |
| $7,700 to $39,620 |
3.51 percent |
| Above $39,620 |
4.55 percent |
Two figures that matter just as much as the rates:
- Nebraska standard deduction for 2026: $8,850 for single filers and $17,700 for married filing jointly.
- Personal exemption credit for 2026: $176 per exemption. This is a credit, not a deduction, so it comes straight off your calculated tax rather than off your income.
Nebraska bracket thresholds are indexed for inflation each year under state statute, so they shift slightly every January, even in years when the rates hold steady.
Marginal rate is not your real rate
This trips up almost everyone. Hitting the 4.55 percent bracket does not mean you pay 4.55 percent on everything. Only the income above $24,760 is taxed at 4.55 percent.
A single filer earning $75,000 in Nebraska pays roughly $2,533 in state income tax after the personal exemption credit. That is an effective state rate of about 3.4 percent, not 4.55 percent. Any tool or article telling you Nebraska takes 5.84 percent or 6.8 percent of your paycheck is either using old brackets or confusing the marginal rate with the effective one.
Nebraska Form W4N: the step people miss
Nebraska requires its own state withholding certificate, Form W4N, separate from the federal Form W4. Your employer uses Form W4N together with the Nebraska Circular EN to determine your state withholding.
Why this matters for your paycheck:
- If you never submitted a Form W4N, your employer may be withholding at a default rate that does not match your situation, which typically means over-withholding.
- Your federal Form W4 allowances and your Nebraska W4N allowances do not have to match, and for many people they should not.
- If you claim exemption from Nebraska withholding, that exemption expires. You must give your employer a new Form W4N by February 15 each year to keep it.
If your state withholding line looks wrong on your stub, Form W4N is the first place to look.
How to calculate your Nebraska take home pay
Gross pay minus pre-tax deductions minus federal income tax minus Nebraska state income tax minus FICA minus post-tax deductions equals net pay
Step 1: Find your gross pay for the period. Salaried: divide annual salary by pay periods. Weekly is 52, biweekly is 26, semimonthly is 24, monthly is 12. Hourly: hours times rate, plus overtime at 1.5 times the regular rate for hours over 40 in a workweek.
Step 2: Subtract pre tax deductions. Traditional 401k, HSA and FSA contributions, and Section 125 health premiums come out before income tax is calculated. For 2026, the 401k elective deferral limit is $24,500, with a catch-up of $8,000 at age 50 and up and $11,250 for ages 60 through 63. Note that 401k contributions reduce federal and Nebraska income tax but not FICA, while Section 125 health premiums reduce all three.
Step 3: Calculate federal income tax withholding. Based on your Form W4 and the IRS percentage method tables in Publication 15.
Step 4: Calculate Nebraska state income tax. Nebraska starts from your federal adjusted gross income, subtracts the Nebraska standard deduction or your itemized amount, applies the graduated brackets above, then subtracts the $176 personal exemption credit per exemption.
Step 5: Calculate FICA. Social Security at 6.2 percent until your year-to-date wages reach $184,500, plus Medicare at 1.45 percent on everything.
Step 6: Subtract post-tax deductions. Roth 401k contributions, wage garnishments, union dues, and similar items.
Example: Nebraska take home pay in 2026
Illustrative estimates for a single filer with no dependents, taking the standard deduction, with no pre tax deductions. Your actual withholding depends on your Form W4 and Form W4N.
| Income / Deduction |
$50,000 |
$75,000 |
$110,000 |
| Gross annual pay |
$50,000 |
$75,000 |
$110,000 |
| Social Security (6.2 percent) |
$3,100 |
$4,650 |
$6,820 |
| Medicare (1.45 percent) |
$725 |
$1,088 |
$1,595 |
| Estimated federal income tax |
$3,820 |
$7,670 |
$15,370 |
| Nebraska state income tax |
$1,395 |
$2,533 |
$4,125 |
| Nebraska local income tax |
$0 |
$0 |
$0 |
| Estimated annual take home |
$40,960 |
$59,060 |
$82,090 |
| Estimated biweekly take home |
$1,575 |
$2,272 |
$3,157 |
| Effective Nebraska state rate |
2.8 percent |
3.4 percent |
3.8 percent |
Run your own numbers in the calculator above for a figure that reflects your actual filing status, allowances, and deductions.
Living in Nebraska, working in Iowa (and the reverse)
The Omaha and Council Bluffs metro straddles a state line, so a large share of the region’s workforce crosses it every day. Nebraska residency alone does not settle your tax question.
- Nebraska resident, Iowa job. Iowa generally taxes income you earn there. You file an Iowa nonresident return and claim a credit on your Nebraska return for tax paid to Iowa, so you are not taxed twice on the same dollars, but you may owe a difference if the rates diverge.
- Iowa resident, Nebraska job. Nebraska taxes wages sourced to Nebraska. Your employer withholds Nebraska tax, and you file a Nebraska nonresident return.
- Remote work. If you live in Nebraska and work remotely for an out-of-state employer, Nebraska taxes you as a resident on all income. Where your employer is headquartered does not change that.
This calculator models the Nebraska scenario, meaning wages earned by someone whose work state is Nebraska. If you cross the line for work, use it for the Nebraska portion and consult a tax professional for the multi-state return.
Nebraska wage and hour rules that affect your paycheck
Minimum wage. $15.00 per hour effective January 1, 2026, the final step of the schedule Nebraska voters approved under Initiative 433 in 2022. Beginning January 1, 2027, the rate rises by a fixed 1.75 percent each year under LB 258, which replaced the original inflation indexing. The Nebraska Department of Labor publishes the adjusted figure each October 15.
Tipped wage. The tipped cash wage stays at $2.13 per hour. Nebraska did not raise it alongside the minimum wage, so the gap between cash wage and full minimum is now among the widest in the country. Employers must make up any shortfall so tipped employees reach $15.00 per hour.
Youth and training wages. Under LB 258, effective July 17, 2026, employers may pay $13.50 per hour to non-emancipated employees aged 14 and 15, and may use a $13.50 training wage for new employees aged 16 through 19 subject to duration limits.
Overtime. 1.5 times the regular rate for hours over 40 in a workweek for employees who are not exempt.
Paid sick time. Under the Nebraska Healthy Families and Workplaces Act, which took effect October 1, 2025, following Initiative 436 and was amended by LB 415, private employers with 11 or more employees must provide earned paid sick time. Employees accrue one hour for every 30 hours worked, with annual caps that vary by employer size. Nebraska has no state paid family and medical leave program.
Retirement and Social Security income. Nebraska no longer taxes Social Security retirement benefits, and military retirement and Railroad Retirement benefits are exempt.
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For Nebraska employers: your side of the ledger
Nebraska gives employers more to manage than most Midwest states, largely because of how unemployment insurance is structured.
State income tax withholding. Register with the Nebraska Department of Revenue. Collect a Form W4N from every employee. Calculate withholding using the Circular EN, which the Department reissues for each tax year. The 2026 Circular EN reflects the new bracket structure, so if you are still running last year’s tables, you are over-withholding for your staff.
State Unemployment Insurance (SUI), paid entirely by you, never withheld from employees:
- Taxable wage base: the first $9,000 of each employee’s annual wages for most employers, but $24,000 for employers assigned to category 20, the highest rate group. This two-tier wage base is unusual and easy to get wrong.
- New employer rate: 1.25 percent for non-construction employers and 5.4 percent for construction employers.
- Experienced employer rates: range from 0.00 percent to 5.4 percent, assigned through Nebraska’s 20-category array system based on your reserve ratio. Employers with a positive experience rating cannot be placed in category 20.
- Filing: quarterly combined tax and wage reports through NEworks with the Nebraska Department of Labor.
Federal Unemployment Tax (FUTA): 6.0 percent on the first $7,000 of each employee’s wages, with a credit of up to 5.4 percent for paying state unemployment tax in full and on time, giving an effective rate of 0.6 percent, or roughly $42 per qualifying employee per year.
Employer FICA match: 6.2 percent Social Security up to $184,500 and 1.45 percent Medicare with no cap. You do not match the additional 0.9 percent Medicare tax.
From estimate to document
A calculator gives you a number. A landlord, lender, or loan officer wants a document.
If you are self employed, a contractor, or a small business owner in Nebraska and you need proof of income, the figures you just calculated can be turned into a formatted pay stub showing gross pay, itemized federal deductions, the Nebraska state withholding line, net pay, and year-to-date totals.
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Frequently asked questions
What is the Nebraska income tax rate for 2026? Nebraska uses graduated rates of 2.46 percent, 3.51 percent, and 4.55 percent for tax year 2026. The top rate of 4.55 percent applies to Nebraska taxable income above $24,760 for single filers and $49,530 for married filing jointly. It dropped from 5.20 percent in 2025 and is scheduled to fall again to 3.99 percent in 2027.
Why did my Nebraska paycheck change in January 2026? The state cut its top rate from 5.20 percent to 4.55 percent effective January 1, 2026, and the bracket thresholds were adjusted for inflation. Employers switched to the 2026 Circular EN withholding tables, which reduced state withholding for most Nebraska workers.
Does Nebraska have a local income tax? No. No city or county in Nebraska levies a local income tax, and that includes Omaha and Lincoln. Several online calculators claim otherwise. They are wrong.
How much is taken out of a Nebraska paycheck? Federal income tax based on your Form W4, Nebraska state income tax based on your Form W4N, 6.2 percent Social Security on the first $184,500 of 2026 wages, and 1.45 percent Medicare on all wages. For a single filer earning $75,000, total withholding runs roughly 21 percent of gross.
What is the Nebraska minimum wage in 2026? $15.00 per hour, effective January 1, 2026. The tipped cash wage is $2.13 per hour, with the employer required to cover any shortfall to $15.00.
Does Nebraska tax Social Security benefits or retirement income? Nebraska no longer taxes Social Security retirement benefits. Military retirement and Railroad Retirement benefits are also exempt. Other retirement distributions are generally taxable at the regular graduated rates.
What is Form W4N and do I need one? Form W4N is Nebraska’s own withholding allowance certificate, separate from the federal Form W4. Yes, you need one on file with your employer. If you claim exemption from Nebraska withholding, you must file a new Form W4N by February 15 each year to renew it.
What is the Nebraska SUTA rate for 2026? New employers pay 1.25 percent, or 5.4 percent for construction. Experienced employers range from 0.00 percent to 5.4 percent under the state’s 20-category array. The taxable wage base is $9,000 for most employers and $24,000 for category 20 employers. Only employers pay it. It is never deducted from employee wages.
I live in Nebraska but work in Iowa. What do I owe? Iowa taxes the income you earn there, and you file an Iowa nonresident return. You then claim a credit on your Nebraska resident return for tax paid to Iowa, so the same income is not fully taxed twice.
Does this calculator handle hourly and salaried pay? Yes. Switch between hourly and salary mode, choose any pay frequency, add overtime hours, and enter pre-tax or post-tax deductions.
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