Nebraska pay stubs: state taxes and withholding
Nebraska paycheck withholding: graduated state income tax with a 4.55% top rate for 2026, no local income tax, and federal payroll taxes.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
Nebraska taxes wages under graduated rates, and it is partway through a multi-year rate cut. For 2026 the top rate is 4.55%, down from 5.2% in 2025, and further cuts are scheduled. Employees submit Form W-4N for Nebraska withholding. Employers use the state's withholding tables for the current year.
Because the rates are falling year by year, avoid carrying last year's withholding setup into January. Load the new tables each year.
Other state payroll deductions
Nebraska keeps the state side of the paycheck short:
- No state disability insurance deduction
- No paid family and medical leave payroll contribution
- No employee unemployment tax. Nebraska employers pay state unemployment insurance themselves.
Local taxes
Nebraska cities and counties do not charge income tax on wages. Local sales taxes exist, but they don't show up on a pay stub.
Federal withholding still applies
Federal deductions work the same in Nebraska as anywhere else. Withhold federal income tax based on Form W-4. Withhold Social Security at 6.2% until the employee's wages hit the annual Social Security wage base. Withhold Medicare at 1.45% of all wages, and add 0.9% additional Medicare on wages over $200,000 in the year.
Creating a Nebraska pay stub with PayStubNest
In the pay stub generator, enter hours and an hourly rate, or a salary and pay schedule, then pick Nebraska. The calculator applies federal withholding and Nebraska state tax and keeps year-to-date totals running across your stubs. The exact amounts depend on pay, pay frequency, the employee's W-4 choices, any deductions and year-to-date totals. PayStubNest works all of that out automatically. Previewing is free. You pay only when you download a finished stub.
Working across state lines
Many people in the Omaha area live in Iowa or work across the river. When an employee lives in one state and works in another, which state's tax to withhold depends on both states' rules. Check with the Nebraska Department of Revenue before you set up withholding for a cross-border employee.
Record-keeping tip
Keep copies of each year's stubs together with the rate that applied that year. With Nebraska's rates changing annually, this makes it easy to explain why the state line changed between December and January. The Nebraska Department of Revenue publishes the current tables.