How Paycheck Taxes Work in Nebraska
How paycheck taxes work in Nebraska: Your employer withholds federal income tax based on your W-4, then Nebraska state income tax using state withholding tables. Social Security (6.2%) and Medicare (1.45%) are also deducted from each paycheck. Nebraska applies progressive income tax with moderate top rates. Standard deductions reduce taxable income before brackets apply.
Nebraska State Tax Information
Nebraska income tax rates range from 2.46% to 5.2%.
Nebraska applies progressive income tax with moderate top rates. Standard deductions reduce taxable income before brackets apply.
Federal Income Tax
Federal income tax uses progressive brackets — higher income is taxed at higher rates. The standard deduction reduces your taxable income before brackets apply. Your W-4 determines how much your employer withholds each pay period.
Social Security
Social Security tax (FICA) is 6.2% of wages up to the annual wage base ($184,500 in 2026). Both employee and employer pay this amount; this calculator shows the employee portion.
Medicare
Medicare tax is 1.45% on all wages with no cap. High earners pay an additional 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).