-
Overall Rank
16
Up 8 places since 2026 -
9
Up 4 places since 2026 -
13
Up 9 places since 2026 -
14
No change since 2026 -
42
Up 3 places since 2026 -
Unemployment Insurance Tax Rank
4
Down 1 place since 2026
Nebraska ranks 16th overall on the 2027 State Tax Competitiveness Index.
Score 5.39 / 10
Notable Changes Nebraska is singled out in the study for this year's changes.
In the 2027 Index
Nebraska improved eight places overall, from 24th to 16th, due to the continued phase-down of its income tax rates. The state’s top individual income tax rate decreased from 5.2 percent to 4.55 percent, with a resulting elimination of its fourth bracket, moving Nebraska from 22nd to 13th on the individual income tax component. The state’s flat corporate rate also decreased to 4.55 percent, and its conformity to full bonus depreciation has allowed the Cornhusker State’s corporate tax rank to climb four spots to 9th.
Snapshot date: The 2027 Index measures each state's tax law as of July 1, 2026. Changes enacted after that date are not reflected in these ranks.
About Nebraska's Tax Code
Nebraska has taken strides to improve its income tax competitiveness in recent years by reducing its individual and corporate income tax rates. Currently, the state’s graduated individual income tax rates range from 2.46 percent to 4.55 percent, and its corporate income tax rate is now a flat 4.55 percent.
Despite these improvements, Nebraska maintains an uncompetitive “convenience of the employer rule,” which can lead to double taxation (with no offsetting credit) for remote employees working for businesses located in Nebraska—ultimately a disincentive for businesses to locate in the state if they want to be able to hire across the country. Nebraska also requires individual income tax filing and withholding for nonresidents working in the state for even a single day. Additionally, Nebraska conforms to Section 951A of the federal tax code and therefore includes net CFC tested income (NCTI) in its corporate tax base. This inclusion results in higher corporate income tax liability for Nebraska companies with operations in other countries.
Notably, Nebraska’s property taxes are on the high side regionally and nationally, and Nebraska is one of the few states that continues to impose an antiquated capital stock tax, which is assessed against the net worth of Nebraska corporations and imposed regardless of whether a firm makes a profit. The Nebraska Occupation Tax, as it is known in the state, is collected every other year, which complicates the filing process, since firms must track their net worths across two tax years. Nebraska also retains an inheritance tax and is the only state to have adopted but later abandoned a tangible personal property tax de minimis exemption.
Component Scores
#16 overall · 5.39 / 10Each component is scored from 0 to 10, where 10 is best. Select a component for its detail page.
| Component | Rank | Score | |
|---|---|---|---|
| Corporate Taxes | #9 | 5.72 / 10 | |
| Individual Income Taxes | #13 | 5.67 / 10 | |
| Sales Taxes | #14 | 5.27 / 10 | |
| Property Taxes | #42 | 4.04 / 10 | |
| Unemployment Insurance Taxes | #4 | 6.03 / 10 |
Ranking Changes, 2020–2027
#16 in 2027 · up 9 places from 2020Nebraska ranked 25th in 2020 and ranks 16th in 2027, an improvement of 9 places. The axis is zoomed to the state's range. Ranks for 2020 through 2026 are backcast under the current methodology.
Show the Table
| Year | Overall | Corporate | Individual Income | Sales | Property | Unemployment Insurance |
|---|---|---|---|---|---|---|
| 2020 | 25 (5.13) | 30 (5.08) | 27 (5.16) | 12 (5.48) | 44 (3.79) | 2 (6.21) |
| 2021 | 24 (5.14) | 29 (5.09) | 25 (5.20) | 11 (5.44) | 45 (3.85) | 2 (6.15) |
| 2022 | 23 (5.16) | 29 (5.09) | 25 (5.24) | 13 (5.33) | 45 (3.80) | 1 (6.43) |
| 2023 | 23 (5.18) | 30 (5.11) | 27 (5.21) | 10 (5.49) | 44 (3.99) | 1 (6.19) |
| 2024 | 28 (5.11) | 30 (5.11) | 29 (5.18) | 12 (5.49) | 45 (3.83) | 2 (6.00) |
| 2025 | 23 (5.25) | 24 (5.29) | 27 (5.30) | 12 (5.48) | 40 (4.25) | 3 (6.00) |
| 2026 | 24 (5.25) | 13 (5.54) | 22 (5.37) | 14 (5.24) | 45 (3.93) | 3 (6.06) |
| 2027 | 16 (5.39) | 9 (5.72) | 13 (5.67) | 14 (5.27) | 42 (4.04) | 4 (6.03) |
Nebraska Compared across the States
#16 overallEach row places the states on a 0 to 10 score scale for one measure. Nebraska is the large outlined dot, and the dashed line is the 50-state median, so a dot to its right scores better than the typical state. Hover over or tab to any dot for detail, and select it to open that state's profile.
Overall
#16 5.39
Corporate Taxes
#9 5.72
Individual Income Taxes
#13 5.67
Sales Taxes
#14 5.27
Property Taxes
#42 4.04
Unemployment Insurance Taxes
#4 6.03
- Nebraska
- Other states, by rank (1st to 50th)
- 50-state median
Nebraska and Its Neighbors
#16 overallNebraska borders 6 states and ranks 16th overall; 3 of them rank higher and 3 rank lower.
What Each Component Includes
The five components of the Index, what each one covers, and where Nebraska lands. Open any component for the full breakdown.
-
Corporate Taxes
Rank #9Includes corporate income taxes and gross receipts taxes. Measures the impact of each state’s principal tax on business activities.
Full Breakdown for Nebraska → -
Individual Income Taxes
Rank #13Covers the tax individuals pay on income, and with it a significant number of businesses — sole proprietorships, partnerships, and S corporations — that report their income through the individual income tax code.
Full Breakdown for Nebraska → -
Sales Taxes
Rank #14Covers the general sales tax levied on the purchase price of goods and services, plus excise taxes on gasoline, diesel, tobacco, vapor products, beer, and spirits, and taxes on digital advertising.
Full Breakdown for Nebraska → -
Property Taxes
Rank #42Includes taxes on real and personal property, net worth, and the transfer of assets — among them capital stock, estate, inheritance, and real estate transfer taxes.
Full Breakdown for Nebraska → -
Unemployment Insurance Taxes
Rank #4Covers the taxes employers pay into the state unemployment insurance program to finance benefits for workers recently unemployed.
Full Breakdown for Nebraska →
Tax Data Explorer
Every policy variable behind Nebraska's 2027 scores, grouped by the report's tables, as of July 1, 2026. Its bordering states are shown alongside to start. Search the variables and values, or add up to 4 states to compare side by side.
151 data points · Shaded values differ from Nebraska
Corporate Taxes: Corporate Income Tax Rates
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Bracket 1 | 4.55% > $0 | 4.4% > $0 (differs) | 5.5% > $0 (differs) | 3.5% > $0 (differs) | 4.0% > $0 (differs) | None (differs) | None (differs) |
| Bracket 2 | n.a. | n.a. | 7.1% > $100,000 (differs) | 6.5% > $50,000 (differs) | n.a. | n.a. | n.a. |
| Gross Receipts Tax | No | No | No | No | No | No | No |
Corporate Taxes: Tax Credits and Gross Receipts Deductions
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Job Credits | Yes | Yes | Yes | Yes | Yes | No (differs) | No (differs) |
| Research and Development Credits | Yes | Yes | Yes | Yes | Yes | No (differs) | No (differs) |
| Investment Credits | Yes | Yes | Yes | Yes | Yes | No (differs) | No (differs) |
| Compensation Expenses Deductible | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Cost of Goods Sold Deductible | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Corporate Taxes: Net Operating Losses
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Conforms to Federal NOL Treatment | No | No | Yes (differs) | No | No | n.a. (differs) | n.a. (differs) |
| Carryback (Years) | 0 | 0 | Conforms to federal treatment (differs) | 0 | 2 (differs) | n.a. (differs) | n.a. (differs) |
| Carryback Cap | $0 | $0 | Conforms to federal treatment (differs) | $0 | Unlimited (differs) | n.a. (differs) | n.a. (differs) |
| Carryforward (Years) | 20 | 20 | Conforms to federal treatment (differs) | Unlimited (differs) | 20 | n.a. (differs) | n.a. (differs) |
| Carryforward Cap | Unlimited | 80% (differs) | Conforms to federal treatment (differs) | Unlimited | Unlimited | n.a. (differs) | n.a. (differs) |
Corporate Taxes: Treatment of Capital Investment
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Section 168(k) Expensing | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Conforms to Section 163(j) Limitation | Yes | Yes | No (differs) | No (differs) | No (differs) | No (differs) | No (differs) |
| GILTI Inclusion | 60% Inclusion | 50% Inclusion (differs) | Decouples (differs) | Decouples (differs) | Decouples (differs) | n.a. (differs) | n.a. (differs) |
| Section 174 Expensing | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Section 168(n) Expensing | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Corporate Taxes: Other Corporate Base Variables
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | Yes | Yes | Yes | Yes | n.a. (differs) | n.a. (differs) |
| Conformity Status | Rolling | Rolling | Rolling | Rolling | Rolling | n.a. (differs) | n.a. (differs) |
| Allows Federal ACRS or MACRS Depreciation | Yes | Yes | Yes | Yes | Yes | n.a. (differs) | n.a. (differs) |
| Allows Federal Depletion | Yes | Yes | Yes | Yes | Yes | n.a. (differs) | n.a. (differs) |
| Throwback Rule | No | Yes (differs) | No | Yes (differs) | No | n.a. (differs) | n.a. (differs) |
| Foreign Tax Deductibility | Yes | No (differs) | Yes | No (differs) | Yes | n.a. (differs) | n.a. (differs) |
| Corporate AMT | No | No | No | No | No | n.a. (differs) | n.a. (differs) |
| Brackets Indexed for Inflation | Flat CIT | Flat CIT | No (differs) | No (differs) | Flat CIT | n.a. (differs) | n.a. (differs) |
Individual Income Taxes: Individual Income Tax Rates
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Bracket 1 | 2.46% > $0 | 4.4% > $0 (differs) | 3.8% > $0 (differs) | 5.2% > $0 (differs) | 2.0% > $1,348 (differs) | No Income Tax (differs) | No Income Tax (differs) |
| Bracket 2 | 3.51% > $4,130 | n.a. (differs) | n.a. (differs) | 5.58% > $23,000 (differs) | 2.5% > $2,696 (differs) | n.a. (differs) | n.a. (differs) |
| Bracket 3 | 4.55% > $24,760 | n.a. (differs) | n.a. (differs) | n.a. (differs) | 3.0% > $4,044 (differs) | n.a. (differs) | n.a. (differs) |
| Bracket 4 | n.a. | n.a. | n.a. | n.a. | 3.5% > $5,392 (differs) | n.a. | n.a. |
| Bracket 5 | n.a. | n.a. | n.a. | n.a. | 4.0% > $6,740 (differs) | n.a. | n.a. |
| Bracket 6 | n.a. | n.a. | n.a. | n.a. | 4.5% > $8,088 (differs) | n.a. | n.a. |
| Bracket 7 | n.a. | n.a. | n.a. | n.a. | 4.7% > $9,436 (differs) | n.a. | n.a. |
| Standard Deduction (Single Filer) | $8,850 | $16,100 (differs) | $16,100 (differs) | $3,605 (differs) | $16,100 (differs) | n.a. (differs) | n.a. (differs) |
| Personal Exemption (Single Filer) | n.a. | n.a. | n.a. | $9,160 (differs) | n.a. | n.a. | n.a. |
| Personal Exemption Credit (Single Filer) | $176 | n.a. (differs) | $40 (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Personal Exemption per Dependent | n.a. | n.a. | n.a. | $2,320 (differs) | n.a. | n.a. | n.a. |
| Personal Exemption Credit per Dependent | $176 | n.a. (differs) | $40 (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Average Local Income Tax Rate | None | 0.06% (differs) | 0.10% (differs) | None | 1.00% (differs) | None | None |
| Surtaxes on Wage Income | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Individual Income Taxes: Marriage Penalty, Capital Income, Indexation
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Marriage Penalty | No | No | No | No | No | n.a. (differs) | n.a. (differs) |
| Married Couples Can File Separately on One Return | No | No | Yes (differs) | No | Yes (differs) | n.a. (differs) | n.a. (differs) |
| Convenience Rule | Yes | No (differs) | No (differs) | No (differs) | No (differs) | No (differs) | No (differs) |
| Interest Taxed | Yes | Yes | Yes | Yes | Yes | n.a. (differs) | n.a. (differs) |
| Dividends Taxed | Yes | Yes | Yes | Yes | Yes | n.a. (differs) | n.a. (differs) |
| Capital Gains Taxed | Yes | Yes | Yes | Yes | No (differs) | n.a. (differs) | n.a. (differs) |
| Combined Capital Gains Tax Rate | 4.55% | 4.4% (differs) | 3.943% (differs) | 5.58% (differs) | 0% (differs) | n.a. (differs) | n.a. (differs) |
| Tax Brackets Indexed for Inflation | Yes | Yes | Yes | No (differs) | Yes | n.a. (differs) | n.a. (differs) |
| Standard Deduction Indexed for Inflation | Yes | Yes | Yes | No (differs) | Yes | n.a. (differs) | n.a. (differs) |
| Personal Exemption Indexed for Inflation | Yes | Yes | No (differs) | No (differs) | Yes | n.a. (differs) | n.a. (differs) |
| Progressivity Ratio | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | n.a. (differs) | n.a. (differs) |
Individual Income Taxes: Other Individual Base Variables
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | Yes | Yes | Yes | Yes | n.a. (differs) | n.a. (differs) |
| Conformity Status | Rolling | Rolling | Rolling | Rolling | Rolling | n.a. (differs) | n.a. (differs) |
| Credits for Taxes Paid to Other States | Yes | Yes | Yes | Yes | Yes | n.a. (differs) | n.a. (differs) |
| AMT Levied | No | Yes (differs) | No | No | No | n.a. (differs) | n.a. (differs) |
| Recognition of S Corporation Status | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Section 179 Expensing Limit | $2,560,000 | $2,560,000 | $2,560,000 | $2,560,000 | $2,560,000 | $2,560,000 | $2,560,000 |
| Tips | Taxable | Exempt (differs) | Exempt (differs) | Taxable | Taxable | n.a. (differs) | n.a. (differs) |
| Overtime | Taxable | Taxable | Exempt (differs) | Taxable | Taxable | n.a. (differs) | n.a. (differs) |
| Filing and Withholding Threshold Index | 0 | 0 | 0.565 (differs) | 0 | 0.339 (differs) | 10 (differs) | 10 (differs) |
Individual Income Taxes: Other Individual Income Variables
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Income Recapture | No | No | No | No | No | n.a. (differs) | n.a. (differs) |
Sales Taxes: Sales and Excise Tax Rates
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| State Sales Tax Rate | 5.50% | 2.90% (differs) | 6.00% (differs) | 6.50% (differs) | 4.23% (differs) | 4.20% (differs) | 4.00% (differs) |
| Average Local Sales Tax Rate | 1.48% | 4.99% (differs) | 0.94% (differs) | 2.21% (differs) | 4.22% (differs) | 1.91% (differs) | 1.39% (differs) |
| Maximum Local Sales Tax Rate | 2.00% | 9.10% (differs) | 2.00% | 4.25% (differs) | 6.25% (differs) | 4.50% (differs) | 3.00% (differs) |
| Gasoline Tax (Cents per Gallon) | 32.70 | 30.18 (differs) | 30.00 (differs) | 25.03 (differs) | 29.99 (differs) | 30.00 (differs) | 24.00 (differs) |
| Diesel Tax (Cents per Gallon) | 32.1 | 35.68 (differs) | 32.5 (differs) | 27.03 (differs) | 29.99 (differs) | 30 (differs) | 24 (differs) |
| Cigarette Tax (Dollars per Pack of 20) | $0.64 | $2.24 (differs) | $1.36 (differs) | $1.29 (differs) | $0.17 (differs) | $1.53 (differs) | $0.60 (differs) |
| Beer Tax (Dollars per Gallon) | $0.31 | $0.08 (differs) | $0.19 (differs) | $0.18 (differs) | $0.06 (differs) | $0.2742 (differs) | $0.0189 (differs) |
| Spirits Tax (Dollars per Gallon) | $3.75 | $2.28 (differs) | $15.14 (differs) | $2.50 (differs) | $2.00 (differs) | $4.93 (differs) | $0.00 (differs) |
| Vapor Tax Ratio to Cigarette Tax | 5.00% | 146.5333% (differs) | n.a. (differs) | 5.00% | n.a. (differs) | n.a. (differs) | 39.25% (differs) |
Sales Taxes: Business-to-Business Exemptions
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Business Inputs | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable |
| Farm Equipment | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Office Equipment | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Manufacturing Machinery | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Manufacturing Raw Materials | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Business Fuel and Utilities | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Business Leases and Rentals | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Information Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Software as a Service (SaaS) | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Platform as a Service (PaaS) | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Digital B2B Products | Taxable | Exempt (differs) | Exempt (differs) | Exempt (differs) | Exempt (differs) | Taxable | Exempt (differs) |
| Payroll Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Data Center Purchases | Exempt | Taxable (differs) | Exempt | Exempt | Exempt | Taxable (differs) | Partial (differs) |
| Digital Advertising Tax | No | No | No | No | No | No | No |
Sales Taxes: Consumer Goods and Services in the Base
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Groceries | Exempt | Exempt | Exempt | Local Tax Only (differs) | Alternate Rate (differs) | Taxable (differs) | Exempt |
| Clothing | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Prescription Medication | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Nonprescription Medication | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Gasoline | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Landscaping | Taxable | Exempt (differs) | Taxable | Exempt (differs) | Exempt (differs) | Taxable | Exempt (differs) |
| Repair Services | Taxable | Exempt (differs) | Taxable | Taxable | Exempt (differs) | Taxable | Taxable |
| Real Estate Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Parking | Exempt | Exempt | Taxable (differs) | Exempt | Exempt | Taxable (differs) | Exempt |
| Dry Cleaning | Exempt | Exempt | Taxable (differs) | Taxable (differs) | Exempt | Taxable (differs) | Taxable (differs) |
| Fitness Services | Taxable | Exempt (differs) | Taxable | Taxable | Taxable | Taxable | Exempt (differs) |
| Barber Services | Exempt | Exempt | Taxable (differs) | Exempt | Exempt | Taxable (differs) | Exempt |
| Veterinary Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| E-Books | Taxable | Taxable | Taxable | Exempt (differs) | Exempt (differs) | Taxable | Taxable |
| Streaming Video | Taxable | Taxable | Taxable | Exempt (differs) | Exempt (differs) | Taxable | Taxable |
| Medical Services | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Legal Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Financial Services | Exempt | Exempt | Taxable (differs) | Exempt | Exempt | Exempt | Exempt |
| Accounting Services | Exempt | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Sales Tax Holiday | No | No | Yes (differs) | No | Yes (differs) | No | No |
Sales Taxes: Sales Tax Structure
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Uniform Base Definitions | Yes | No (differs) | Yes | Yes | Yes | Yes | Yes |
| Unified Tax Administration | Yes | No (differs) | Yes | Yes | Yes | Yes | Yes |
| Safe Harbor for Remote Sellers | Sales or Transactions Threshold | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) |
Property Taxes: Property and Capital Stock Tax Rates
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Property Tax Collections per Capita | $2,354 | $2,379 (differs) | $2,104 (differs) | $2,017 (differs) | $1,567 (differs) | $1,864 (differs) | $2,635 (differs) |
| Property Tax as a Percentage of Personal Income | 3.24% | 2.88% (differs) | 3.22% (differs) | 3.06% (differs) | 2.41% (differs) | 2.47% (differs) | 3.04% (differs) |
| Assessment Limit | No | No | Yes (differs) | No | No | Yes (differs) | Yes (differs) |
| Levy Limit | No | Yes (differs) | No | No | Yes (differs) | Yes (differs) | No |
| Capital Stock Tax Rate | Fixed dollar payment schedule | None (differs) | None (differs) | None (differs) | None (differs) | None (differs) | 0.02% (differs) |
| Capital Stock Tax Maximum Payment | $11,995 | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | Unlimited (differs) |
| Payment Options for Capital Stock and Corporate Income Taxes | Pay both | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | Pay both |
Property Taxes: Property Tax Bases
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Tangible Personal Property Tax | Yes | Yes | No (differs) | Yes | Yes | Partial (differs) | Yes |
| Tangible Personal Property De Minimis Exemption | None | $56,000 (differs) | n.a. (differs) | None | None | n.a. (differs) | $75,000 (differs) |
| Intangible Property Tax | No | No | Yes (differs) | No | No | Yes (differs) | No |
| Inventory Tax | No | No | No | No | No | No | No |
| Real Estate Transfer Tax | Yes | Yes | Yes | No (differs) | No (differs) | Yes | No (differs) |
| Split Roll | No | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) |
| Split Roll Ratio | 1.00 | 3.82 (differs) | 2.02 (differs) | 2.17 (differs) | 1.68 (differs) | 1.23 (differs) | 1.33 (differs) |
| Estate Tax | No | No | No | No | No | No | No |
| Inheritance Tax | 15% | No (differs) | No (differs) | No (differs) | No (differs) | No (differs) | No (differs) |
| Gift Tax | No | No | No | No | No | No | No |
Unemployment Insurance Taxes: UI Tax Rates
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Minimum Rate | 0.00% | 0.72% (differs) | 0.00% | 0.00% | 0.00% | 0.00% | 0.10% (differs) |
| Maximum Rate | 5.40% | 10.85% (differs) | 5.40% | 6.95% (differs) | 6.00% (differs) | 9.13% (differs) | 8.60% (differs) |
| Taxable Wage Base | $9,000 | $30,600 (differs) | $20,400 (differs) | $15,100 (differs) | $9,000 | $15,000 (differs) | $33,800 (differs) |
| Most Favorable Schedule: Minimum Rate | 0.00% | 0.51% (differs) | 0.00% | 0.20% (differs) | 0.00% | 0.00% | 0.00% |
| Most Favorable Schedule: Maximum Rate | 5.40% | 6.28% (differs) | 7.00% (differs) | 7.60% (differs) | 5.40% | 9.30% (differs) | 8.50% (differs) |
| Least Favorable Schedule: Minimum Rate | 0.00% | 0.75% (differs) | 0.00% | 0.20% (differs) | 0.00% | 0.00% | 0.00% |
| Least Favorable Schedule: Maximum Rate | 5.40% | 10.39% (differs) | 9.00% (differs) | 7.60% (differs) | 7.80% (differs) | 9.45% (differs) | 8.50% (differs) |
| Employer Contributions as a Share of Total Wages | 0.17% | 0.62% (differs) | 0.53% (differs) | 0.28% (differs) | 0.21% (differs) | 0.10% (differs) | 0.43% (differs) |
| Employer Contributions as a Share of Taxable Wages | 0.87% | 1.86% (differs) | 0.97% (differs) | 0.83% (differs) | 1.08% (differs) | 0.33% (differs) | 0.89% (differs) |
| Trust Fund Solvency Ratio | 1.31 | 0.4 (differs) | 1.54 (differs) | 1.67 (differs) | 0.7 (differs) | 1.7 (differs) | 2.36 (differs) |
| New Employer Rate | 2.50% | 1.70% (differs) | 3.00% (differs) | 1.75% (differs) | 2.70% (differs) | 1.20% (differs) | 3.00% (differs) |
Unemployment Insurance Taxes: Experience Formulas and Charging Methods
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Experience Formula Based On | Reserve Ratio | Reserve Ratio | Benefits Ratio (differs) | Reserve Ratio | Reserve Ratio | Reserve Ratio | Benefits Ratio (differs) |
| Benefits Charged in Proportion to Base-Period Wages | No (base-period employers in inverse chronological order) | No (base-period employers in inverse chronological order) | No (base-period employers in inverse chronological order) | Yes (differs) | Yes (differs) | No (base-period employers in inverse chronological order) | Yes (differs) |
| Charged If Employee's Benefit Award Is Reversed | No | No | No | Yes (differs) | No | No | No |
| Charged for Reimbursements on Combined Wage Claims | Yes | No (differs) | No (differs) | Yes | Yes | Yes | Yes |
| Charged If Employee Left Voluntarily | No | No | No | No | No | No | No |
| Charged If Employee Was Discharged for Misconduct | No | No | No | No | No | No | No |
| Charged If Employee Refused Suitable Work | Yes | Yes | No (differs) | Yes | No (differs) | Yes | Yes |
| Charged If Employee Continues to Work Part-Time | No | No | No | No | No | Yes (differs) | No |
Unemployment Insurance Taxes: Other UI Base Variables
| Variable | Nebraska | Colorado | Iowa | Kansas | Missouri | South Dakota | Wyoming |
|---|---|---|---|---|---|---|---|
| Solvency Tax | No | Yes (differs) | No | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) |
| Taxes for Socialized Costs or Negative Balance Employers | No | No | No | No | No | No | Yes (differs) |
| Loan and Interest Repayment Surtaxes | No | Yes (differs) | Yes (differs) | No | Yes (differs) | No | No |
| Reserve Taxes | Yes | No (differs) | Yes | No (differs) | No (differs) | No (differs) | No (differs) |
| Surtaxes for UI Administration or Non-UI Purposes | No | No | No | No | Yes (differs) | Yes (differs) | Yes (differs) |
| Temporary Disability Insurance | No | No | No | No | No | No | No |
| Voluntary Contributions | Yes | Yes | No (differs) | Yes | Yes | Yes | No (differs) |
| Years to Qualify for Experience Rating | 1 | 1 | 3 (differs) | 2 (differs) | 2 (differs) | 2 (differs) | 3 (differs) |
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About the Authors
Janelle Fritts is a Senior Policy Analyst with the Tax Foundation’s Center for State Tax Policy. She is the lead researcher on the annual State Tax Competitiveness Index and serves as a resource to policymakers in their efforts to modernize and improve the structures of their state tax codes. Her work has been cited in The New York Times, the Associated Press, Bloomberg, and numerous state media outlets across the country.
Jared Walczak is a Senior Fellow at the Tax Foundation, where he spent five years as Vice President of State Projects, and president of Walczak Policy Consulting.
Nicole Fox is a Policy Analyst with the Center for State Tax Policy at the Tax Foundation, where she serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Katherine Loughead is the Vice President of State Tax Policy at the Tax Foundation, where she oversees the state tax policy team’s research agenda and serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
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