Taxes in Nebraska

Nebraska Tax Rates, Collections, and Burdens

How does Nebraska’s tax code compare? Nebraska has a graduated individual income tax, with rates ranging from 2.46 percent to 6.84 percent. Nebraska also has a 5.58 percent to 7.50 percent corporate income tax rate. Nebraska has a 5.50 percent state sales tax rate, a max local sales tax rate of 2.50 percent, and an average combined state and local sales tax rate of 6.94 percent. Nebraska’s tax system ranks 35th overall on our 2022 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. Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

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July 25, 2016

Lunch Links: 44 Percent Pay No Federal Income Tax; California Property Taxes Grow Fast; New Jersey Gas Tax Standoff Continues

July 19, 2016

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July 11, 2016

Lunch Links: French Raid Google, Castles and Property Taxes, and the “Federal Student Tax”

May 25, 2016

Lunch Links: Gambling Not Fixing State Budgets, Florida vs. California, States Battle Colorado Marijuana Legalization

April 28, 2016

Property Tax Bills Stalled in Nebraska

May 1, 2015

10 Remaining States Provide Tax Filing Guidance to Same-Sex Married Taxpayers

March 20, 2015

Taxplainer: The State and Local Tax Impact of the Keystone Pipeline

January 7, 2015

Taxes in Many States Changing January 1, 2015

December 31, 2014

Nebraska’s Latest Tax Incentives Report is an Exaggeration

July 17, 2014

Business Tax Incentives in Nebraska: Is There a Better Way?

June 27, 2014

Nebraska Legislators Approve Inflation Indexing But Drop Major Tax Overhaul

March 12, 2014

Pro-Growth Tax Reform in the Cornhusker State

February 18, 2014

Open Sky Policy Institute: “Illinois is not an Example for Other States”

January 15, 2014

Should Nebraska Follow the Example of Illinois or Indiana?

January 10, 2014

Nebraska Department of Revenue Finds Tax Cuts Good for the State’s Economy

November 13, 2013

Expert Praises Our Nebraska Tax Reform Options

October 17, 2013

Building on Success: A Guide to Fair, Simple, Pro-Growth Tax Reform for Nebraska

October 3, 2013

Nebraska Governor Withdraws Tax Reform Proposal; Legislature Look to Commission to Develop Alternatives

February 25, 2013

Testimony Before the Nebraska Legislature Finance Committee on Income Tax Reform

February 6, 2013