Sales Tax
- Statewide: 5.5%
- Counties can levy an additional sales tax of no more than 4.2%.
- Current average sales tax (with local taxes included): 6.34%
- Common Exceptions at State Level:
- Unprepared Foods: Exempt
- Prepared Foods: 10%
- Prescription Medicine: Exempt
- Gasoline Tax: 48.40 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 53.80 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
- Personal Income Tax Rate Range: Four brackets from 2.46% to 5.84% (on income greater than $37,670).
- Standard deduction: Single Filing Status: $8,350 (over 65: additional $1,950)
- Personal Exemption Allowance: $166. Dependent Exemption: $166 (taken as tax credit)
- Itemized Deductions Allowed?: Yes, subject to limitations
- Retirement Income
- Social Security: Exempt
- IRAs: Taxable at ordinary income tax rates
- 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates.
- Private pensions: Taxable at ordinary income tax rates
- Public Pensions: Taxable at ordinary income tax rates
- Military Pay
- Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income
- Military Retirement Pay: Exempt
- Military Disability Pay: Exempt
- VA Disability Dependency & Indemnity Compensation Benefits: Exempt
- SBP/SSBP/RCSBP/RSFPP: Taxable at ordinary income tax rates.
Property Tax
- Local municipalities average 1.54% of the property's assessed value.
- Calculation of assessed value: 100% of fair market value
- Relief programs for:
- 65 and Over/Disabled/Disabled Veterans and Surviving Spouses/Surviving Spouse of KIA servicemember: Full or partial exemption based on disability rating and income.
- Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: There is an inheritance tax of 1% on estates over $100,000 for immediate relatives (there is no inheritance tax if the heir is 21 or younger), an 11% tax for estates over $40,000 for remote relatives, and an 15% tax on estates over $25,000 for other beneficiaries. There is no estate tax.
Department of Revenue website: https://revenue.nebraska.gov
