On May 31, 2023, Nebraska Governor Jim Pillen signed LB 754 into law, which included a reduction of individual income taxes incrementally by 2027. Refer to the following table to view the agency’s plan to reduce rates and tax brackets.
2024 - Individual Income Tax Brackets and Rates | |||||
Bracket Number | Single | Married, Filing Jointly | Head of Household | Married, Filing Separate | Tax Rate |
1 | $0 - $2,999 | $0 - $5,999 | $0 - $5,599 | $0 - $2,999 | 2.46% |
2 | $3,000 - $17,999 | $6,000 - $35,999 | $5,600 - $28,799 | $3,000 - $17,999 | 3.51% |
3 | $18,000 - $28,999 | $36,000 - $57,999 | $28,800 - $42,999 | $18,000 - $28,999 | 5.01% |
4 | $29,000 and over | $58,000 and over | $43,000 and over | $29,000 and over | 5.84% |
Tax Bracket Rates by Tax Year | ||||
Tax Year | Bracket 1 | Bracket 2 | Bracket 3 | Bracket 4 |
2025 | 2.46% | 3.51% | 5.01% | 5.20% |
2026 | 2.46% | 3.51% | 4.55% | Bracket Eliminated |
2027 | 2.46% | 3.51% | 3.99% | Bracket Eliminated |
For more information on Nebraska wage and payroll tax laws, check out our Nebraska Wage and Payroll Tax Facts page.
Paylocity will continue to monitor these changes and provide updates as additional guidance from Nebraska becomes available.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.
Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.