What’s the proper way to tax personal saving and investment? It’s a great question, and under current tax law, we have lots of different answers! Specifically, we have four of them, which I’ll get to in a moment. But...
The facts on Nebraska’s Tax Climate
6.84%Individual Income Tax
7.81%Corporate Income Tax
5.5%Sales and Excise Taxes
Nebraska's Individual Income Tax System
Nebraska's individual income tax system consists of four brackets with a top rate of 6.84%. The top rate ranks 16th highest among states levying an individual income tax. Nebraska's state and local tax collections per person were $1,124 in 2013, which ranked 18th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Nebraska's Corporate Income Tax System
Nebraska's corporate income tax system consists of two brackets with a top rate of 7.81%. The top rate ranks 16th highest among states levying a corporate income tax. Nebraska's state and local corporate income tax collections per person were $147 in 2013 which ranked 20th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Nebraska Sales and Excise Taxes
Nebraska levies a 5.5% general sales or use tax on consumers, which is below the national median of 5.95%. The average local sales tax rate is an additional 1.4%. Nebraska's state and local governments collect $1,075 per person in general sales taxes and $335 per person in excise taxes, for a combined figure of $1,410, which ranks 29th highest nationally. Nebraska's gasoline tax stands at 27.7 cents per gallon, 28th highest nationally, while its cigarette tax stands at $0.64, 39th highest nationally.
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Nebraska Property Tax Collections Relatively High
Nebraska's state and local governments collected approximately $1,649 per person in property taxes in 2013, which ranks 13th nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 14th in Nebraska
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Nebraska taxpayers have to work until April 14th (14th earliest nationally) to pay their total tax bill.
Nebraska's State and Local Tax Burden Ranks 30th
Nebraska's 2012 tax burden of 9.2% ranks 30th highest in the nation, and is below the national average of 9.9%. Nebraska's taxpayers pay $4,197 per capita in state and local taxes.
Nebraska's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Nebraska's 2016 Business Tax Climate Index Ranks 27th
Nebraska ranks 27th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (31st), individual income taxes (24th), sales taxes (26th), unemployment insurance taxes (2nd), and taxes on property (39th), including residential and commercial property.
State Business Tax Climate Index (full study)
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