Updated for tax year 2025.
If you live or work in Nebraska, you’ll likely need to file a Nebraska state income tax return along with your federal return. Nebraska uses a progressive income tax system, so your filing status and taxable income affect how much state tax you owe.
This guide explains Nebraska’s 2025 income tax rates and brackets, standard deduction rules, exemptions and credits, and updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Nebraska’s tax rules to help you accurately prepare your Nebraska return alongside your federal return.
What is the Nebraska state income tax?
Nebraska state income tax is a tax on income earned by individuals. It is collected by the Nebraska Department of Revenue and helps fund state services.
For tax year 2025, Nebraska uses a progressive bracket structure with rates from 2.46% to 5.20%, depending on filing status and taxable income.
Nebraska income tax rates and tax brackets
Nebraska’s 2025 rate schedule is progressive. Here are the 2025 Nebraska income tax brackets:
| Tax Rate | Single or Married Filing Separately | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 2.46% | Up to $2,999 | Up to $5,999 | Up to $5,599 |
| 3.51% | $3,000-$17,999 | $6,000-$35,999 | $5,600-$28,799 |
| 5.01% | $18,000-$28,999 | $36,000-$57,999 | $28,800-$42,999 |
| 5.20% | $29,000+ | $58,000+ | $43,000+ |
If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes. See the Nebraska tax booklet and 2025 tax tables for official computation details.
Nebraska standard deduction
If you use the standard deduction on your federal return, you must use the Nebraska standard deduction on your Nebraska return. For 2025, the base Nebraska standard deduction amounts (before additional line 2a box adjustments) are:
- $8,600 for single and married filing separately
- $17,200 for married filing jointly and qualifying surviving spouse
- $12,600 for head of household
Nebraska’s standard deduction can be higher when additional age/blindness boxes are checked on Form 1040N. If you itemized on your federal return, Nebraska generally allows the larger of Nebraska standard deduction or federal itemized deductions minus state and local income taxes claimed on Schedule A.
Nebraska exemptions and credits
Nebraska provides personal exemptions and several credits that may reduce your tax. Common examples include:
- Nebraska personal exemption credit is a nonrefundable credit
- Nebraska College Savings Plan and Enable plan subtractions for qualifying contributions (up to $10,000, or $5,000 if married filing separately)
- Credit for tax paid to another state for qualifying income taxed by both Nebraska and another state
- Property tax credits and other credits listed on Form 1040N and supporting schedules
- Other state credits listed in the Nebraska individual income tax booklet and credit schedules
Eligibility, limits, and carryforward rules vary by credit. Review the 2025 Nebraska Individual Income Tax Booklet for current requirements.
Nebraska tax changes for 2025
For tax year 2025, Nebraska’s top individual income tax rate is 5.20% (down from 5.84% in 2024). The rate is scheduled to decrease again for later tax years under current law.
The 2025 booklet also includes several updated credit programs and filing guidance, including credits tied to qualifying donations and workforce programs. The return due date is generally April 15, 2026.
FAQs
The bottom line
Nebraska’s 2025 income tax is progressive, with rates up to 5.20%. Understanding your bracket, deduction method, and available credits can help you estimate what you may owe or get back.
When you’re ready to file, TaxAct can help you prepare your federal and Nebraska returns in one place so you can file with confidence.
Already filed your taxes and waiting for your refund? Learn more about where your Nebraska state tax refund is.
This article is for informational purposes only and not legal or financial advice.
All TaxAct offers, products and services are subject to applicable terms and conditions.
The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.
Citations
Nebraska Department of Revenue. “2025 Nebraska Individual Income Tax and Amended Return Booklet.” Accessed 19 Aug. 2026.
Nebraska Department of Revenue. “Form 1040N Nebraska Individual Income Tax Return.” Accessed 19 Aug. 2026.
Nebraska Legislature. “Neb. Rev. Stat. § 77-2715.03.” Accessed 19 Aug. 2026.