Nebraska State Taxes

Nebraska Income Tax

Nebraska uses a graduated tax rate structure that ranges between 2.46% and 4.55%.

2026 Nebraska Income Tax Rates – Single or Married Filing Separately

Taxable Income	Tax Rate
$0 – $2,999	2.46%
$3,000 – $17,999	3.51%
$18,000 – $28,999	4.55%
Over $29,000	4.55%

2026 Nebraska Income Tax Rates – Married Filing Jointly or Surviving Spouse

Taxable Income	Tax Rate
$0 – $5,999	2.46%
$6,000 – $35,999	3.51%
$36,000 – $57,999	4.55%
Over $58,000	4.55%

2026 Nebraska Income Tax Rates – Head of Household

Taxable Income	Tax Rate
$0 – $5,599	2.46%
$5,600- $28,799	3.51%
$28,800 – $42,999	4.55%
Over $43,000	4.55%

Nebraska’s top tax rate will decrease each year until reaching 3.99% for the 2027 tax year.

Who Must File?

Full-year Nebraska residents who are required to file a federal income tax return must also file a state return (1040N). You must also file a Nebraska income tax return if you have $5,000 or more of net Nebraska adjustments to your federal adjusted gross income (AGI). This includes non-Nebraska state and local bond interest exempt from federal tax.

Partial-year and non-residents must file a Nebraska income tax return if they have income derived from or connected with state sources.

Nebraska Sales Tax

Nebraska’s state sales and use tax rate is 5.5%. Local governments (city and county) can levy an additional sales tax rate of .05% to 2%, making the top combined sales tax rate 7.5%.

Nebraska Property Taxes

Nebraska has some of the highest property tax rates in the United States. On average, residents pay 1.54% of their property value.

The median property tax paid in Nebraska is $3,167. Wheeler County has the highest property tax at an average of $4,853. The lowest amount is $879 in Adams County.

Nebraska Property Tax

Highest	$4853
Median	$3167
Lowest	$879

Yearly Cost Per Resident

Nebraska Tax Holidays

There are no tax holidays scheduled in Nebraska at this time.

Nebraska Tax Relief

Tax debt can quickly become more difficult to manage when Nebraska income taxes remain unpaid. In addition to a growing balance due to penalties and interest, taxpayers may face collection efforts from the Nebraska Department of Revenue (DOR). Whether you’re dealing with past-due returns, a period of financial hardship, or unpaid business taxes, taking action early can help you better understand your options and prevent the problem from escalating.

If paying your Nebraska tax bill in full isn’t financially possible, you may have alternative ways to resolve the debt. Depending on your situation and eligibility, you may be able to request a payment plan, submit a tax settlement request, or pursue other available resolution options. Addressing the balance before collection efforts advance may also help you avoid or resolve actions such as tax liens, wage garnishments, and bank levies.

Knowing what to expect from Nebraska’s tax collection process can make an outstanding balance feel more manageable. By exploring your tax relief options and taking steps to resolve what you owe, you can work toward bringing your Nebraska tax account back into compliance.

Common Nebraska State Tax Problems

How Nebraska Collects Tax Debt

If you owe Nebraska income taxes and don’t pay, the state follows a structured process for collecting back taxes. It starts with the initial Balance Due Notice, which outlines what you owe and a payment deadline.

The next step, if you haven’t complied, is the Notice of Demand for Payment. This gives you a final window for payment before things escalate. Once DOR certifies the debt, the state can offset (seize) any state or federal refunds you are due.

If you are uncooperative or fail to make payment arrangements, the state will then move to legal enforcement powers, such as:

• Wage garnishment
• Bank levy
• Placing your name on a delinquent taxpayer list
• Assigning your account to a private collection agency

Balance Due Notice sent to taxpayer

Notice of Demand for Payment

Referral to Collections

Nebraska State Tax Relief Options

Nebraska offers a few relief options, including:

• Payment Plans – If you can’t pay your tax bill on time, you may be eligible to pay over several months (up to 24) through a payment plan.
• Tax Settlement – The NE DOR may consider settling a tax debt for less than is owed if the taxpayer has limited income or is facing a financial hardship. You can submit a Financial Hardship Request for Individuals to see if you qualify.
• Penalty Abatement – You can request abatement of a tax penalty (Form 21) only after the tax, interest, and penalty fee have been paid. The state will consider abatement if there was reasonable cause for the late payment or filing.

If you’re experiencing financial hardship and can’t pay your Nebraska income tax bill, contact the Department of Revenue as soon as possible to avoid collection actions.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

Nebraska Tax Relief FAQs

How do I set up an Nebraska payment plan?

If you owe Nebraska income taxes and have received a bill, you can request a payment plan online through the Tyler Technologies website.  Existing users may need to reset their password due to recent system upgrades. New users must register by selecting “Create Account.”

Be sure to have your Nebraska identification number (located on the Balance Due Notice), Social Security number (SSN), and bank information (account and routing number) on hand before starting the process.

All payment plan requests require a minimum monthly payment of $25 and must resolve your unpaid balance within 24 months. The payment start date must commence within 40 days of submitting your payment plan request. Most plans receive immediate online approval.

What happens if I ignore Nebraska tax notices?

If you don’t pay your Nebraska income taxes and ignore notices, the state will seize future tax refunds, garnish your wages, seize your bank accounts and property, and potentially send your account to a private collection agency.

Can Nebraska garnish my wages for unpaid taxes?

Yes, Nebraska can garnish your wages for back taxes. They typically take up to 25% of your disposable income (15% if you’re head of household).

Can Nebraska levy my bank account?

Yes. The NE Department of Revenue can seize the money in your bank accounts to satisfy an outstanding tax debt.

How long does Nebraska have to collect back taxes?

Nebraska generally has 10 years to actively collect on a tax debt once a notice of lien is filed. The state can also file continuation statements to extend the 10 years or bring a civil action in court to collect the delinquent amount.

Nebraska Tax Resources

If you need assistance preparing your Nebraska state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the Nebraska Department of Revenue website for additional resources.

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