State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

Nebraska State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

Nebraska

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The Bottom Line
Flag of Nebraska

Least Tax-Friendly

While the cost of housing is comparatively low in the Cornhusker State, the average property tax rate in the state is quite high. For a $300,000 home, the state-wide average tax in Nebraska comes to $4,842 per year. That's the ninth-highest property tax amount in our U.S. rankings, and it's the primary reason why Nebraska is our list of least tax-friendly states.

Income Tax Range

Low: 2.46% (on up to $3,290 of taxable income for single filers and $6,570 for married couples filing jointly)

High: 6.84% (on taxable income over $31,750 for single filers and $63,500 for married couples filing jointly)

Sales Tax

5.5% state levy. Localities can add as much as 2.5%, and the average combined rate is 6.94%, according to the Tax Foundation.

Groceries: Exempt
Clothing: Taxable
Motor Vehicles: Taxable
Prescription Drugs: Exempt

Real Property Taxes

In Nebraska, the median property tax rate is $1,614 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 29.6¢ per gallon (28.6¢ per gallon effective July 1, 2021).
Diesel: 29¢ per gallon (28¢ per gallon effective July 1, 2021).

Sin Taxes

Cigarettes and many little cigars: $0.64 per pack
Moist snuff: $0.44 per ounce
Other tobacco products: 20% of the wholesale price

Beer: $0.31 per gallon
Wine: $0.95 per gallon
Liquor: $3.75 per gallon

Annual Car Taxes and Fees

An annual vehicle excise tax based on the car's sticker price (MSRP) and age is imposed until the vehicle is 14 years old.

Estate and Inheritance Taxes

With Nebraska's inheritance tax, the closer the heir's relationship to the decedent, the smaller the tax rate and the greater the exemption (surviving spouses are exempt from the tax). For example, the tax on heirs who are immediate relatives (e.g., parents, grandparents, siblings, children and other lineal descendants) is only 1% and does not apply to property that is worth less than $40,000. For remote relatives (e.g., uncles, aunts, nieces, nephews), the tax rate is 13% and the exemption amount is $15,000. For all other heirs, the tax is imposed at an 18% rate on property worth $10,000 or more.


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