Use our Nebraska Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions and get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your Nebraska Paycheck is Calculated
Your take-home pay, or net pay, is the amount you receive after taxes and deductions are withheld from your gross income. Here’s the basic formula used:
Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s what each term means:
- Gross Pay: The total amount you earn before taxes or deductions, including wages, bonuses, and overtime.
- Federal Income Tax: The tax withheld by the IRS based on your income level, filing status, and W-4 information.
- FICA Taxes: Social Security and Medicare taxes that fund federal benefit programs.
- State Income Tax: The amount withheld by the State of Nebraska based on your taxable income.
- Local Taxes: Additional city or county taxes, which are uncommon in Nebraska.
A Guide to Nebraska State Payroll Taxes
Nebraska State Income Tax
Nebraska has a progressive income tax system with four tax brackets. Below are the 2025 Nebraska state income tax rates for single filers and married individuals filing jointly:
| Nebraska Taxable Income | Tax Rate |
|---|---|
| Up to $3,730 | 2.46% |
| $3,731 – $22,440 | 3.51% |
| $22,441 – $36,430 | 5.01% |
| Over $36,430 | 5.84% |
Standard Deduction:
- $8,750 for single filers
- $17,500 for married couples filing jointly
Personal Exemption: Nebraska follows the federal personal exemption rules, meaning no separate state exemption applies.
These deductions help reduce your taxable income, lowering the total amount of Nebraska state income tax withheld from your paycheck.
State-Specific Programs & Withholdings
Nebraska does not require employees to contribute to state disability insurance (SDI) or paid family leave programs. However, employers contribute to the State Unemployment Insurance (SUI) fund, and some local governments may collect small occupational taxes.
Employees are not responsible for paying SUI directly. This makes payroll deductions in Nebraska relatively simple, as most employees only see federal, state, and FICA taxes withheld.
Understanding Federal & FICA Taxes
Federal and FICA taxes apply to all U.S. workers, regardless of where they live. These taxes fund programs such as Social Security and Medicare.
- Social Security Tax: 6.2% on wages up to $168,600 in 2025.
- Medicare Tax: 1.45% on all wages, plus an extra 0.9% on income over $200,000 for single filers and $250,000 for married couples filing jointly.
Employers match these contributions, paying the same percentage for each employee. These taxes are a significant part of the deductions that determine your take-home pay.
Local Taxes in Nebraska
Nebraska does not levy local income taxes at the state level. However, a few cities and counties collect small occupational or municipal taxes. For example:
- Omaha: Imposes a 1.5% occupation tax on employees who work within city limits.
- Lincoln: Has a 1.5% occupation tax on wages earned in the city.
If you work in one of these areas, your employer will automatically withhold the correct amount from your paycheck. Most other parts of Nebraska do not have additional local income taxes.
Frequently Asked Questions (FAQs) About Nebraska Paychecks
What is the minimum wage in Nebraska?
As of 2025, Nebraska’s minimum wage is $13.50 per hour. This rate is part of a gradual increase approved by voters and will continue to rise annually until it reaches $15.00 in 2026.
How often are paydays in Nebraska?
Nebraska law requires employers to pay employees at least once per month. However, most employers pay on a bi-weekly or semi-monthly basis.
What is the Nebraska state tax rate for 2025?
For 2025, Nebraska’s state income tax rates range from 2.46% to 5.84%, depending on your taxable income.
Are 1099 contractors subject to Nebraska taxes?
Yes. Independent contractors must pay both federal and Nebraska state income taxes directly, as no employer withholds taxes for them. They are also responsible for self-employment taxes, which include Social Security and Medicare contributions.
What are the overtime laws in Nebraska?
Nebraska follows federal overtime laws under the Fair Labor Standards Act (FLSA). Employees must be paid 1.5 times their regular pay rate for all hours worked over 40 in a workweek, unless they qualify for an exemption.
Disclaimer
This Nebraska Paycheck Calculator provides an estimate based on current tax rates and general information. Actual paycheck amounts may vary depending on your specific situation, benefit selections, and employer withholdings. For personalized tax advice, consult a licensed tax professional or financial advisor.