Nebraska Wage and Payroll Tax Facts

October 24, 2023

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Nebraska.

Nebraska imposes a higher minimum wage rate than the one required by the federal government in the Fair Labor Standards Act (FLSA). This is similarly reflected in the state's higher tip credit rate. 
When it comes to processing payroll, Nebraska-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated October 20, 2023. It is not intended as legal or tax advice.

Nebraska Minimum Wage Rates

Wage Type

Nebraska Rates

Federal Rates

Minimum Wage



Tipped Minimum Wage



Actual Tip Credit



Nebraska State Income Tax (SIT) Rates

Nebraska's SIT is progress, meaning it adjusts based on the income level of the employee paying the tax:

Filing Status Income Tax Bracket
[Over X] - [But not over Y]
2023 Income Tax Rate
Single / Head of Household $0 - $3,060 $0
$3,060 - $5,990 2.26% of excess over $3,060
$5,990 - $19,470 $66.22 + 3.22% of excess over $5,990
$19,470 - $28,210 $500.28 + 4.91% of excess over $19,470
$28,210 - $35,820 $929.41 + 6.20% of excess over $28,210
$35,820 - $67,270 $1,401.23 + 6.39% of excess over $35,820
$67,270 or greater $3,410.89 + 6.75% of excess over $67,270
Married $0 - $7,530 $0
$7,350 - $11,610 2.26% of excess over $7,350
$11,610 - $28,910 $92.21 + 3.22% of excess over $11,610
$28,910 - $44,980 $649.27 + 4.91% of excess over $28,910
$44,980 - $55,810 $1,438.31 + 6.20% of excess over $44,980
$55,810 - $74,010 $2,109.77 + 6.39% of excess over $55,810
$74,010 or greater $3,272.75 + 6.75% of excess over $74,010


Additional Nebraska SIT Details

Supplemental Withholding Computation


Valid Filing Statuses

  • S = Single
  • M = Married


Number of allowances

Form W-4

Form W-4N

Reconciliation Frequency


Nebraska State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

Nebraska SUI Tax Details

Taxable Wage Base

$9,000 or $24,000*

Employee Subject to Tax


Rates for Experienced Employers

0.00% - 5.40%

Rates for New Employers


Effective Period

Calendar Year

Voluntary Contributions Allowed

Yes; due on or before February 28 every year

*Category 20 employers and employees only.

Nebraska State Disability Insurance (SDI) Rates

SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Nebraska, however, doesn't require employers to collect an SDI tax.

Miscellaneous Nebraska Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Nebraska currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in Nebraska pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL)

The state of Nebraska doesn’t require employers to collect tax for paid sick leave, nor does the state have a program providing paid sick leave to employees.

Nebraska Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Department of Labor for unemployment tax topics.

Registration Details

Department of Revenue

Department of Labor


(402) 471-5729 (402) 471-9898

Online Registration

Online Business Registration NEworks Registration Page

Registration Form

Form 20 UI Form 1

Registration Instructions

Online and paper registration options are available. Account numbers will be issued after the online process or in 2 weeks via mail. Online and paper registration options are available. Account numbers will be issued in 30 days via online process or in 45 days via mail.

Employer Self-Service Login

NebFile Homepage NEworks Login Page

Additional Nebraska Payroll Tax Resources


This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.


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