How does Nebraska’s tax code compare? Nebraska has a graduated state individual income tax, with rates ranging from 2.46 percent to 5.84 percent. Nebraska has a graduated corporate income tax, with rates ranging from 5.58 percent to 5.84 percent. Nebraska also has a 5.50 percent state sales tax rate and an average combined state and local sales tax rate of 6.97 percent. Nebraska has a 1.44 percent effective property tax rate on owner-occupied housing value.
Nebraska has an inheritance tax. Nebraska has a 30 cents per gallon gas tax rate and a $0.64 cigarette excise tax rate. The State of Nebraska collects $6,345 in state and local tax collections per capita. Nebraska has $8,165 in state and local debt per capita and has a 98 percent funded ratio of public pension plans. Overall, Nebraska’s tax system ranks 30th on our 2024 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Nebraska is no exception. The first step towards understanding Nebraska’s tax code is knowing the basics. How does Nebraska collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?
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Does your state have a small business exemption for machinery and equipment?
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In 2021 and 2022 alone, more states enacted laws converting graduated-rate individual income tax structures into single-rate income tax structures than did so in the whole 108-year history of state income taxation up until that point.
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Short FormWorking from home is great. The tax complications? Not so much.
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Graduated corporate rates are inequitable—that is, the size of a corporation bears no necessary relation to the income levels of the owners.
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