Nebraska State Taxes: A Simple Guide

🌽Nebraska state income tax

Nebraska taxes personal income with its own rules, separate from federal law. In general:

• •Residents above certain income thresholds generally must file a Nebraska income tax return.
• •Nonresidents may need to file if they earn Nebraska-source income.
• •Nebraska's definitions of taxable income, deductions, and credits are not identical to federal rules.

A typical resident will file a federal Form 1040 plus a Nebraska return if they meet filing requirements.

🛒Sales and use tax

Nebraska has a state sales tax, and many cities and counties add their own local sales taxes on top. Total rates vary depending on location.

• •Many retail sales of goods are taxable.
• •Some purchases (such as certain groceries or medicines) may be exempt or taxed differently.
• •If you buy taxable items from out of state or online without tax, you may owe use tax to Nebraska.

Nebraska businesses selling taxable goods or services generally must collect and remit state and local sales tax where required.

🏡Property taxes

Property taxes in Nebraska are imposed mainly by counties, cities, and school districts based on the assessed value of homes, land, and other real property.

• •Homeowners receive property tax bills from their county.
• •Property taxes fund schools, local government services, and other public needs.
• •Some residents may qualify for credits or relief programs, especially based on age or income.

🔗Putting Nebraska taxes together

A typical Nebraska resident may deal with:

• •Federal income tax (Form 1040)
• •Nebraska state income tax
• •State and local sales and use taxes
• •Local property taxes if they own a home

Once you understand how filing works, Nebraska's rules are easier to fit into the big picture.