Nebraska Tax Guide
5.84%top marginal rate
Nebraska has a progressive income tax with a top rate of 5.84%. The state has some of the highest property taxes in the nation, which has been a major political issue. Nebraska recently eliminated its inheritance tax.
Nebraska Tax at a Glance
Income Tax
5.84%
Top marginal rate
Sales Tax
5.5%
State-level rate
Property Tax
1.73%
57% above the national average
Estate Tax
No
No state estate tax
How Nebraska Compares to the National Average
Notable Tax Facts
- Property taxes are among the highest in the nation at ~1.73%
- Recently eliminated its inheritance tax — previously one of only six states with one
- High property taxes have been a contentious political issue for years
- Top income tax rate has been reduced from 6.84% in recent years
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Nebraska Tax FAQ
What is Nebraska's income tax rate?
Nebraska has a progressive income tax with a top rate of 5.84%. The state has been reducing rates from a previous top rate of 6.84%.
Why are Nebraska property taxes so high?
Nebraska relies heavily on property taxes to fund local schools and government. At about 1.73% effective rate, it's one of the highest in the country. This has been a major political issue.
Does Nebraska still have an inheritance tax?
Nebraska recently voted to phase out its inheritance tax. It was previously one of only six states that levied an inheritance tax.
Does Nebraska tax Social Security?
Nebraska has been phasing out its tax on Social Security benefits. The state is moving toward full exemption of Social Security income.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.