Income Tax
Nebraska is phasing its top income tax rate down toward 3.99%, standing at 5.20% for 2025.
Individual income tax collections
1990–2025Census State Government Tax Collections (FRED NEINCTAX).
Property Tax
Nebraska has one of the higher effective property tax rates in the country, averaging about 1.61% of home value.
State-level property tax collections
1990–2025Census State Government Tax Collections; excludes local property taxes (FRED NEPROPTAX).
| Indicator | Nebraska | U.S. |
|---|---|---|
| Effective Property Tax Rate (%) | 1.61 | 0.9 |
- •High agricultural land property taxes have made property tax relief a recurring political issue in Nebraska.
Sales Tax
Nebraska's state sales tax rate is 5.5%, with local option taxes pushing the average combined rate to about 6.94%.
General sales tax collections
1990–2025Census State Government Tax Collections (FRED NESALESTAX).
| Indicator | Nebraska | U.S. |
|---|---|---|
| Avg. Combined Sales Tax Rate (%) | 6.94 | 7.12 |
- •Nebraska exempts most groceries from its state sales tax.
Tax Burden
Nebraska's total state and local tax burden is about 9.7% of income, close to the national average.
State tax collections per resident
1990–2025Census tax collections (NETOTLTAX) divided by Census resident population (NEPOP).
| Indicator | Nebraska | U.S. |
|---|---|---|
| Total Tax Burden (%) | 9.7 | 9.9 |
- •High property taxes offset Nebraska's relatively moderate sales and income tax rates.
Tax Revenue
Nebraska collects about $6.5 billion in annual state tax revenue, driven mainly by sales and individual income taxes.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED NETOTLTAX).
- •Individual income and sales taxes together make up the large majority of Nebraska's state tax revenue.