Nebraska tax burden — broken down.
Nebraska’s combined tax burden (income + property + sales) lands at 12.43% on our composite — ranking #17 of 51 jurisdictions. The top marginal individual income tax rate is 5.20%.
Nebraska burden, broken into 3 components
| Component | Nebraska rate | National median |
|---|---|---|
| Top marginal income | 5.20% | ~5.30% |
| Effective property | 1.73% | ~1.07% |
| State sales tax | 5.50% | ~5.50% |
| Combined composite | 12.43% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in Nebraska
Nebraska taxes most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are NOT taxed by Nebraska. Federal taxation of these income sources is unchanged regardless of state.
How Nebraska compares
Of all 51 US jurisdictions ranked by combined burden composite, Nebraska sits at #17. That places Nebraska in the middle of the pack — burden is moderate without being a particular outlier in either direction. For the live cross-state heat map, see the interactive tax burden map.
Nebraska metros — local tax overlay
State rates are uniform across Nebraska— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
- Omahaproperty 1.60% · pop 1.0Mmedian $68,200 →
- Lincolnproperty 1.60% · pop 0.4Mmedian $60,800 →
- Grand Islandproperty 1.80% · pop 0.1Mmedian $52,500 →
More Nebraska metros coming as we expand city coverage.
Nebraska tax — common questions
What is the Nebraska top marginal income tax rate in 2025?
Nebraska's top marginal individual income tax rate is 5.20% on the highest bracket.
What is the Nebraska effective property tax rate?
Nebraska's statewide effective property tax rate is 1.73% of home value (annual). On a $400,000 home that's roughly $6,920/yr. Local variation can be ±0.5pp.
Does Nebraska tax retirement income or Social Security?
Nebraska taxes most retirement income, and does NOT tax Social Security benefits.
Are there any Nebraska-specific tax quirks I should know about?
Nebraska has an inheritance tax (one of 6 states) — collected at the COUNTY level (uniquely), with rates 1% (lineal) to 15% (non-relatives).
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.