Nebraska’s State Income Tax
Individual tax rates for Nebraska State income tax are assess over four different income brackets, and vary from 2.56% to 6.84%. Recently, the top two income brackets have been increased. Single taxpayers can expect the following rates:
- 2.56 % on the first $2,400 of taxable income.
- 3.57 % between $2,401 and $17,500 of taxable income
- 5.12 % between $17,501 and $27,000 of taxable income
- 6.84 % on $27,001 and greater of taxable income
Married Filing Jointly
- 2.56 % on the first $4,800 of taxable income.
- 3.57 % between $4,801 and $35,000 of taxable income
- 5.12 % between $35,001 and $54,000 of taxable income
- 6.84 % on taxable income of $54,001 and higher
Taxpayers who file single, head of household or married filing jointly and have an AGI of $173,000 or more (86,825 married filing separately) should use Additional Tax Rate Schedule to determine tax liability. Like other states, April 15th is the deadline for tax returns, provided that date isn’t on a weekend or holiday. If it is, returns are due the following business day.
Nebraska Residents
Residency is determined by domicile in Nebraska. Domicile is the permanent home of an individual, where they intend to return when absent, regardless of how long the absence is. A residence isn’t necessarily a domicile, as an individual can have a residence in another location, but typically establishes only one domicile. Domicile in Nebraska is established when an individual has no temporary or transitory reason for being in the state, and it remains the individual until it is abandoned without intent to return.
A permanent place of abode is a home or shelter maintained by the individual taxpayer, regardless of whether or not it is owned by the taxpaying occupant. It can refer to an apartment, room, house or other shelter that is legal for human occupancy. It doesn’t refer to vacation homes, camps, cottages or other properties kept for temporary dwelling.
Any individual who is physically present in the state and has a permanent place of abode for greater than six months is considered a resident of Nebraska for tax purposes. Even if a taxpayer lives in another state, if they are present in Nebraska for more than 183 days during the tax year, they are considered a resident. Any time spent in Nebraska during the day counts as a day toward the 183 day threshold.
