Nebraska

Tax Rate Range: - 2.56%; High - 6.84%
Income Brackets: * Lowest - $2,400; Highest - $27,000
Number of Brackets: 4
Personal Tax Credits: Single - $106; Married - $212; Dependents - $106;
Standard Deduction: Single - $5,130, Married - $8,580
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Railroad Retirement benefits are exempt. Out-of-state government pensions are fully taxed. Social Security is taxable to the extent of federal taxation.
Retired Military Pay: Follows federal tax rules.

State Tax Software

Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
* The tax brackets reported are for a single individual. For married couples filing jointly, the same rates apply for income under $4,000 to over $50,000.

Sales Taxes

State Sales Tax: 5.5% (food and prescription drugs exempt); local option taxes could add an additional 2.25% to the state rate.
Gasoline Tax: 28.0 cents/gallon
Diesel Fuel Tax: 27.4 cents/gallon
Cigarette Tax: 64 cents/pack of 20

The state has a homestead exemption that provides relief from property taxes by exempting all or a portion of the valuation of the homestead from taxation. There are three groups of exemptions: A) persons age 65, B) certain disabled individuals, and C) certain disabled veterans and their widow(er)s. Call 800-742-7474 or 402-471-5984 for details or click here.

Nebraska's inheritance tax is collected at the county level. The estate tax is limited and related to federal estate tax collection. The estate tax rate for the first $100,000 of a taxable estate was reduced retroactively in 2004 to 5.6 percent for decedents dying on or after July 1, 2003. A new bracket of 12 percent was created for taxable estates between $3.5 million and $4 million. The highest rate is now 16.8 percent for taxable estates of more than $9 million.
For further information, visit the Nebraska Department of Revenue site.
Note: The state has a statutory provision for automatic adjustment of tax brackets, personal exemptions or standard deductions to the rate of inflation.