Today, the Tax Foundation is honoring six individuals with the second annual award for Outstanding Achievement in State Tax Reform. As the award’s name suggests, the honorees were selected due to their extraordinary...
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 personal income tax system consists of four brackets and a top rate of 6.84%. That rate ranks 15th highest among states levying an individual income tax. Nebraska's state and local income tax collections per person were $938 in 2011 which ranked 21st 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 and a top rate of 7.81%. That rate ranks 19th highest among states levying a corporate income tax. Nebraska's state and local corporate income tax collections per person were $84 in 2011 which ranked 16th lowest 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 1.29%. Nebraska's state and local governments collect $921 per person in general sales taxes and $391 per person in excise taxes, for a combined figure of $1312, which ranks 25th lowest nationally. Nebraska's gasoline tax stands at 27.3¢ (24th highest nationally), while its cigarette tax stands at $0.64 (14th lowest 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 $1566 per person in property taxes, which ranks 14th highest 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 finally have earned enough money to pay off their total tax bill for the year. In 2014, Nebraska taxpayers worked until April 14th (23rd earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: South Dakota, April 4th (ranked 3rd earliest nationally); Iowa, April 13th (ranked 19th earliest nationally); Missouri, April 11th (ranked 15th earliest nationally); Kansas, April 18th (ranked 19th latest nationally); Colorado, April 22nd (ranked 13th latest nationally); and Wyoming, April 17th (ranked 21st latest nationally).
Nebraska's State and Local Tax Burden In Line with National Average
Nebraska's 2011 tax burden of 9.44% ranks 25th highest out of 50 states, and is below the national average of 9.8%. Nebraska's taxpayers pay $3991 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 2014 Business Tax Climate Index Ranks 34
Nebraska ranks 34th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: South Dakota, 2nd, Iowa, 40th, Missouri, 16th, Kansas, 20th, Colorado, 19th, and Wyoming, 1st.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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