Nebraska taxes

Nebraska taxes personal income at 2.46% to 5.2%, and does not tax Social Security. A sole proprietor owes no separate business tax. An LLC files a report every second year from $25. Corporations pay an occupation tax every second year, at least $26, based on their paid-up capital stock. C corporations also pay 5.2% corporate income tax.

Personal income tax

Nebraska residents file Form 1040N, due April 15, 2026. There is no automatic extension, but Nebraska accepts your federal extension, or you can file its Form 4868N. An extension can be at most six months, and tax not paid by April 15, 2026 is charged interest.

For single filers the rate on taxable income is 2.46% on the first $4,030, 3.51% on the next $20,090, 5.01% on the next $14,750 and 5.2% above $38,870. Married couples filing jointly pay 2.46% on the first $8,040, 3.51% on the next $40,210, 5.01% on the next $29,480 and 5.2% above $77,730. Head of household filers have their own steps.

Nebraska's personal exemption is a credit of $171 per person, taken off the tax itself rather than off your income. Social Security and military retirement are not taxed. Civil Service (CSRS) pensions are exempt, but FERS pensions are not.

Return

Form 1040N

Due date

April 15, 2026, with no automatic extension

Rates

2.46%, 3.51%, 5.01%, 5.2%

Standard deduction

$8,600 single or married filing separately, $17,200 married filing jointly, $12,600 head of household

Age 65 or blind

$2,000 more each for single and head of household filers, $1,650 for married filers

Personal exemption credit

$171 per person, off the tax

Not taxed

Social Security, military retirement, and Civil Service (CSRS) pensions

Early or lump-sum retirement payouts

An extra tax of 29.6% of the federal tax on them

Earned income credit

10% of the federal credit, refundable

Sole proprietor

A sole proprietor with no LLC files nothing with Nebraska for the business and pays no fee. The biennial report is only for registered entities.

Your business profit is taxed on your own Form 1040N, at the personal rates above.

Single-member LLC

Every Nebraska LLC files a biennial report with the Secretary of State every second year, in odd-numbered years, by April 1. It is late from June 16. The fee is $25 filed online or $30 on paper, whatever the business earned.

The LLC's profit is taxed on your own Form 1040N.

Partnership

A partnership with Nebraska income files Form 1065N, the Nebraska return of partnership income, by the 15th day of the third month after its tax year ends, so March 15 for a calendar year.

A limited liability partnership files an annual report with the Secretary of State every year by April 1, late from June 16. The fee is $25 online or $30 on paper. A limited partnership files no regular report at all.

The profit passes through to the partners, who report it on their own returns.

Nebraska makes the business pay Nebraska tax of 5.20% of each nonresident individual owner's Nebraska share, unless that owner signs a Nonresident Income Tax Agreement, Form 12N, or the business has elected the pass-through entity tax. The amount is not worked out here, because it needs each owner's residence and share.

S corporation

An S corporation files Form 1120-SN, the Nebraska S corporation income tax return, on the same day as its federal return.

A Nebraska corporation, S corporations included, files a biennial report and pays an occupation tax every second year, in even-numbered years, by March 1. It is late from April 15. This is a different cycle from Nebraska LLCs.

The occupation tax is based on paid-up capital stock, not profit: $26 at $10,000 or less, rising to $23,990 above $100,000,000. The profit passes through to the shareholders, who report it on their own returns.

Nebraska makes the business pay Nebraska tax of 5.20% of each nonresident individual owner's Nebraska share, unless that owner signs a Nonresident Income Tax Agreement, Form 12N, or the business has elected the pass-through entity tax. The amount is not worked out here, because it needs each owner's residence and share.

C corporation

A C corporation files Form 1120N, the Nebraska corporation income tax return, on the same day as its federal return.

A C corporation pays a flat 5.2% of the income apportioned to Nebraska for 2025, and the rate is set to fall to 3.99% by 2027. The rate that applies is the one in force on the first day of the corporation's tax year. A corporation selling into other states counts only its Nebraska share, measured by Nebraska sales over total sales.

It also pays the occupation tax every second year, in even-numbered years, by March 1. It is based on paid-up capital stock: $26 at $10,000 or less, rising to $23,990 above $100,000,000.

Corporate income tax

5.2% of Nebraska income for 2025, falling to 3.99% by 2027

Multi-state profit

Nebraska sales over total sales

Occupation tax

$26 to $23,990, based on paid-up capital stock, every second year

Occupation tax due

March 1 of even-numbered years, late from April 15

Estimate your state tax

Pick your business type and enter this year's numbers to see the state business tax Nebraska charges. It assumes all your sales are in Nebraska.

An estimate for planning, not tax advice.

Sources

• Nebraska Individual Income Tax Booklet, 2025
• Nebraska Form 1040N, 2025
• Nebraska Tax Calculation Schedule, 2025
• sos.nebraska.gov Annual/Biennial Reporting (due date and delinquency for LLCs)
• sos.nebraska.gov Forms and Fee Information
• revenue.nebraska.gov 2025 Nebraska Corporation Income Tax Booklet (Forms 1120N and 1120-SN), Who Must File
• revenue.nebraska.gov 2025 Nebraska Return of Partnership Income Booklet (Form 1065N)
• revenue.nebraska.gov 2025 Nebraska S Corporation Income Tax Booklet (Form 1120-SN), Nonresident Shareholders
• revenue.nebraska.gov 2025 Nebraska Corporation Income Tax Booklet (8-303-2025): "What's New: Corporate Tax Rate Change (LB 754, 2023). For the 2025 taxable year, the corporate tax rate for Nebraska taxable income is reduced to 5.20%", and the line 11 instruction

Last reviewed August 2026.