2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-2715.03 - Individual income tax brackets and rates; Tax Commissioner; duties; tax tables; other taxes; tax rate.

77-2715.03.
Individual income tax brackets and rates; Tax Commissioner; duties; tax tables; other taxes; tax rate.
(1) For taxable years beginning or deemed to begin on or after January 1, 2013, and before January 1, 2014, the following brackets and rates are hereby established for the Nebraska individual income tax:
Individual Income Tax Brackets and Rates
Bracket
Single
Married,
Head of
Married,
Estates
Tax
Number
Individuals
Filing
Household
Filing
and
Rate
Jointly
Separate
Trusts
1
$0-2,399
$0-4,799
$0-4,499
$0-2,399
$0-499
2.46%
2
$2,400-
$4,800-
$4,500-
$2,400-
$500-
17,499
34,999
27,999
17,499
4,699
3.51%
3
$17,500-
$35,000-
$28,000-
$17,500-
$4,700-
26,999
53,999
39,999
26,999
15,149
5.01%
4
$27,000
$54,000
$40,000
$27,000
$15,150
and Over
and Over
and Over
and Over
and Over
6.84%
(2)(a) For taxable years beginning or deemed to begin on or after January 1, 2014, the following brackets and rates are hereby established for the Nebraska individual income tax:
Individual Income Tax Brackets and Rates
Bracket
Single
Married,
Head of
Married,
Estates
Tax
Number
Individuals
Filing
Household
Filing
and
Rate
Jointly
Separate
Trusts
1
$0-2,999
$0-5,999
$0-5,599
$0-2,999
$0-499
2.46%
2
$3,000-
$6,000-
$5,600-
$3,000-
$500-
17,999
35,999
28,799
17,999
4,699
3.51%
3
$18,000-
$36,000-
$28,800-
$18,000-
$4,700-
Rate
28,999
57,999
42,999
28,999
15,149
Three
4
$29,000
$58,000
$43,000
$29,000
$15,150
Rate
and Over
and Over
and Over
and Over
and Over
Four
(b) For purposes of this subsection, rate three shall be:
(i) 5.01% for taxable years beginning or deemed to begin on or after January 1, 2014, and before January 1, 2026;
(ii) 4.55% for taxable years beginning or deemed to begin on or after January 1, 2026, and before January 1, 2027; and
(iii) 3.99% for taxable years beginning or deemed to begin on or after January 1, 2027.
(c) For purposes of this subsection, rate four shall be:
(i) 6.84% for taxable years beginning or deemed to begin on or after January 1, 2014, and before January 1, 2023;
(ii) 6.64% for taxable years beginning or deemed to begin on or after January 1, 2023, and before January 1, 2024;
(iii) 5.84% for taxable years beginning or deemed to begin on or after January 1, 2024, and before January 1, 2025;
(iv) 5.20% for taxable years beginning or deemed to begin on or after January 1, 2025, and before January 1, 2026;
(v) 4.55% for taxable years beginning or deemed to begin on or after January 1, 2026, and before January 1, 2027; and
(vi) 3.99% for taxable years beginning or deemed to begin on or after January 1, 2027.
(3)(a) For taxable years beginning or deemed to begin on or after January 1, 2015, the minimum and maximum dollar amounts for each income tax bracket provided in subsection (2) of this section shall be adjusted for inflation by the percentage determined under subdivision (3)(b) of this section. The rate applicable to any such income tax bracket shall not be changed as part of any adjustment under this subsection. The minimum and maximum dollar amounts for each income tax bracket as adjusted shall be rounded to the nearest ten-dollar amount. If the adjusted amount for any income tax bracket ends in a five, it shall be rounded up to the nearest ten-dollar amount.
(b)(i) For taxable years beginning or deemed to begin on or after January 1, 2015, and before January 1, 2018, the Tax Commissioner shall adjust the income tax brackets by the percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue Code of 1986, as it existed prior to December 22, 2017, except that in section 1(f)(3)(B) of the code the year 2013 shall be substituted for the year 1992. For 2015, the Tax Commissioner shall then determine the percent change from the twelve months ending on August 31, 2013, to the twelve months ending on August 31, 2014, and in each subsequent year, from the twelve months ending on August 31, 2013, to the twelve months ending on August 31 of the year preceding the taxable year. The Tax Commissioner shall prescribe new tax rate schedules that apply in lieu of the schedules set forth in subsection (2) of this section.
(ii) For taxable years beginning or deemed to begin on or after January 1, 2018, the Tax Commissioner shall adjust the income tax brackets based on the percentage change in the Consumer Price Index for All Urban Consumers published by the federal Bureau of Labor Statistics from the twelve months ending on August 31, 2016, to the twelve months ending on August 31 of the year preceding the taxable year. The Tax Commissioner shall prescribe new tax rate schedules that apply in lieu of the schedules set forth in subsection (2) of this section.
(4) Whenever the tax brackets or tax rates are changed by the Legislature, the Tax Commissioner shall update the tax rate schedules to reflect the new tax brackets or tax rates and shall publish such updated schedules.
(5) The Tax Commissioner shall prepare, from the rate schedules, tax tables which can be used by a majority of the taxpayers to determine their Nebraska tax liability. The design of the tax tables shall be determined by the Tax Commissioner. The size of the tax table brackets may change as the level of income changes. The difference in tax between two tax table brackets shall not exceed fifteen dollars. The Tax Commissioner may build the personal exemption credit and standard deduction amounts into the tax tables.
(6) For taxable years beginning or deemed to begin on or after January 1, 2013, the tax rate applied to other federal taxes included in the computation of the Nebraska individual income tax shall be 29.6 percent.
(7) The Tax Commissioner may require by rule and regulation that all taxpayers shall use the tax tables if their income is less than the maximum income included in the tax tables.
Source
Laws 2012, LB970, § 5;
Laws 2014, LB987, § 1;
Laws 2018, LB1090, § 1;
Laws 2022, LB873, § 1;
Laws 2023, LB754, § 7.
Effective Date: June 1, 2023