If you’re wondering, “How do I figure out how much money I take home in Nebraska?” we’ve got you covered.
Use our simple paycheck calculator to estimate your net or “take home” pay after taxes, as an hourly or salaried employee in Nebraska.
Paycheck Calculator
Paycheck Calculator
Disclaimer: Please note that this paycheck calculator is designed to provide an estimate and should not be considered as professional tax advice. The actual withholding amounts and taxes owed may vary depending on individual circumstances and other factors. For accurate and personalized tax advice, we recommend consulting with a tax professional.
If your gross pay is $78,109.00 per year in the state of Nebraska, your net pay (or take home pay) will be $57,948.89 after tax deductions of 25.81% (or $20,160.11). Deductions include a total of [1] 12.74% (or $9,952.08) for the federal income tax, [2] 5.42% (or $4,232.69) for the state income tax, [3] 6.20% (or $4,842.76) for the social security tax and [4] 1.45% (or $1,132.58) for Medicare.
The Federal Income Tax is collected by the government and is consistent across all U.S. regions. In contrast, the State Income Tax is levied by the state of residence and work, leading to substantial variations. The Social Security Tax is used to fund Social Security, which benefits retirees, persons with disabilities and survivors of deceased workers. Medicare involves a federal payroll tax designated for the Medicare insurance program. As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not levy a state income tax.
Meanwhile, get ahead with our free resources:
How Does the Paycheck Calculator Work?
Input your salary information, such as wage and pay frequency, and our tool will handle the tax calculations for you. Once you’ve filled in all the information, click the “Calculate Tax” button, and the calculator will provide an estimate of your net or “take home” pay for the specified pay period.
Overview of Nebraska Taxes
The income tax rates in Nebraska range from a 2.46% on taxable income up to $3,440 for single filers (or $6,860 for married couples filing jointly) to a higher 6.84% on taxable income over $33,180 for single filers (or $66,360 for married couples filing jointly).
However, starting this year, these rates will gradually decrease, ultimately reaching 5.84% in 2027.
Nebraska imposes a 5.50% sales tax rate, while the maximum local sales tax rate is 2%. Therefore, the average combined state and local sales tax rate is 6.95%.
The Cornhusker State imposes taxes on various goods, including motor fuels, alcohol and tobacco. Gasoline and diesel come with specific per-gallon taxes, and the taxation of cigarettes, cigars and other tobacco products varies based on type and quantity.
Similarly, taxes on alcoholic beverages vary by type and volume.
When it comes to property taxes in Nebraska, they have their own unique dynamics. While housing costs are relatively low, the state has a relatively high median property tax rate of $1,509 per $100,000 of assessed home value.
However, there’s good news for retirees. Those over the age of 65 who meet specific criteria can qualify for a homestead exemption, potentially reducing their property tax burden.
Nebraska also has an inheritance tax system. The tax rate depends on the heir’s relationship to the decedent. Immediate relatives enjoy a low 1% tax rate, exempting property worth less than $100,000. Notably, this tax doesn’t affect heirs 21 years of age or younger.
Median Household Income in Nebraska
Nebraska ranks 25th among all U.S. states in terms of overall economic performance. This shows that Nebraska has a balanced economy and and is capable of dealing with economic crises.
At the heart of Nebraska’s prosperity are its leading industries, notably Corn, Wheat & Soybean Wholesaling, Meat, Beef & Poultry Processing, and Health & Medical Insurance.
Although Nebraska’s employment growth rate over the past five years has slightly lagged behind the national average, standing at 1.6% compared to the national average of 3.7%, key sectors such as Healthcare and Social Assistance, Retail Trade, and Information have continued to provide significant job opportunities.
Salaries in the state of Nebraska vary widely based on position. However, the median household income can give you a glimpse at the average salary a household is earning in this state.
| Year | Median Household Income |
|---|---|
| 2021 | $78,109 |
| 2020 | $72,248 |
| 2019 | $73,071 |
| 2018 | $67,575 |
| 2017 | $59,583 |
| 2016 | $59,374 |
| 2015 | $60,474 |
| 2014 | $56,870 |
| 2013 | $57,623 |
| 2012 | $52,196 |
| 2011 | $55,616 |
Tips for Maximizing Your Paycheck
Here are some tips to help you maximize your paycheck:
- Create a realistic monthly budget
- Be aware of tax deductions and credits available to Nebraska residents
- Consider contributing to retirement accounts like a 401(k) or an IRA
- If your employer offers an HSA, take advantage of it
- Be a savvy shopper by looking for sales, using coupons, and comparing prices
- Periodically review your insurance policies, including auto and home insurance
