Nebraska State Income Tax Withholding
Last Updated: January 2026
Overview
Nebraska imposes a progressive state income tax. The state has been significantly reducing its top rate as part of ongoing tax reform, with the rate dropping from 5.01% to 4.55% for 2026, and scheduled to decrease further to 3.99% in 2027.
2026 Tax Rates
Nebraska uses a progressive bracket structure. The top marginal rate for 2026:
| Status | Top Rate |
|---|---|
| All filers | 4.55% |
The tax is calculated using graduated brackets with rates increasing incrementally up to the 4.55% top rate.
Future Rate: The top rate is scheduled to decrease to 3.99% for 2027 and beyond.
Deductions and Exemptions
Standard Deduction: Nebraska conforms to federal standard deduction amounts:
- Single: $14,600
- Married Filing Jointly: $29,200
- Head of Household: $21,900
Personal Exemption Credit: Nebraska provides a credit rather than a deduction for personal exemptions.
Special Considerations
State W-4 Form
Nebraska accepts the federal Form W-4 for withholding purposes. Employees may submit Nebraska Form W-4N to claim different allowances for state purposes or to request additional withholding.
Electronic Payment Requirement
Important for 2026: Employers must pay Nebraska withholding tax electronically if their 2025 calendar year withholding exceeded $5,000.
This is a new threshold that affects more employers than previous requirements.
Electronic Filing Options
Nebraska offers electronic filing through:
- EFT (ACH Credit or ACH Debit)
- Nebraska e-pay system
No Local Income Taxes
Nebraska does not permit local income taxes. Only state withholding is required.
Rate Reduction Schedule
Nebraska has enacted significant tax rate reductions:
- 2023: 6.84% top rate
- 2024: 5.84% top rate
- 2025: 5.01% top rate
- 2026: 4.55% top rate
- 2027+: 3.99% top rate (scheduled)
Withholding Tables
Nebraska Department of Revenue publishes annual withholding tables reflecting the new rates. Ensure you are using 2026 tables that reflect the 4.55% top rate.