Nebraska Payroll · Graduated 2.26%–5.37% · Form W-4N · IRS Publication 15-T
Nebraska Paycheck Calculator 2025
Estimate your Nebraska take-home pay for hourly or salaried work in a single form. The calculator deducts federal income tax withholding, Social Security, Medicare, and the graduated Nebraska income tax using the Circular EN percentage method: it subtracts $2,360 for each Form W-4N allowance before applying the 2.26 percent to 5.37 percent schedule for your single or married status. Uses 2025 IRS Publication 15-T and the 2025 Nebraska withholding tables.
Pay Details
Check this on Form W-4 if you hold two jobs or your spouse also works. It switches to the higher Step 2 withholding schedule.
W-4 Adjustments (Optional)
Annual dependent credit total (e.g. $2,000 per child under 17)
Step 4c additional withholding per paycheck
Nebraska Tax (Form W-4N)
Sets the Nebraska rate chart. Head of household uses the single chart in Nebraska.
From Form W-4N. Each allowance removes $2,360 of annual wages before tax. No W-4N on file means zero allowances.
Enter your pay details and click Calculate to see your take-home pay breakdown.
Want the full Nebraska payroll picture, including how the Circular EN formula reconciles on Form 1040N, the 2026 rate cut under LB 754, why Nebraska has no reciprocity, and the employer unemployment obligations? Read the Nebraska Payroll Taxes guide.
Nebraska Payroll Taxes Guide →Short Answer
This Nebraska paycheck calculator estimates net take-home pay after federal income tax withholding, Social Security (6.2%), Medicare (1.45%), and the graduated Nebraska income tax. Nebraska withholds by annualizing wages, subtracting $2,360 per Form W-4N allowance, then applying the 2.26 percent to 5.37 percent withholding rate schedule for single or married status. For a single Nebraska worker earning $65,000 per year paid biweekly with one allowance, gross pay is about $2,500 per period, and net take-home is roughly $1,979 after about $227 of federal withholding, FICA, and about $103 of Nebraska income tax. Nebraska has no local wage tax and no state disability or family leave deduction.
Key Takeaways
- Nebraska withholds a graduated income tax on every paycheck. This calculator applies the Circular EN percentage method: annualize wages, subtract $2,360 per Form W-4N allowance, then apply the 2.26 percent to 5.37 percent schedule for single or married status and divide by pay periods.
- Each Nebraska allowance is worth $2,360 of annual wages for 2025 (rising to $2,440 for 2026). At the 5.23 percent band, one allowance lowers annual Nebraska withholding by about $123.
- Form W-4N, not the federal W-4, sets your Nebraska withholding. Since 2020 a W-4N must be filed for every federal W-4, and an employee who files no W-4N is withheld as single with zero allowances, which is the highest withholding.
- Nebraska cut its withholding rates for 2026 under LB 754: the 2025 schedule tops out at 5.37 percent while the 2026 schedule tops out at 4.60 percent. This calculator is labeled 2025; the Nebraska Payroll Taxes guide covers the 2026 schedule.
- Federal income tax uses the IRS Publication 15-T percentage method on annualized wages. Social Security is 6.2% up to the 2025 wage base of $176,100; Medicare is 1.45% with no cap plus a 0.9% surtax that employers withhold on wages above $200,000.
- Nebraska has no municipal or county wage income tax, no employee-paid disability, family leave, or unemployment deduction, and no reciprocity with any state. For supplemental pay such as bonuses and RSUs, use the Bonus Tax Calculator and RSU Tax Calculator.
2025 Nebraska Payroll Tax Quick Reference
| Tax | Rate | Wage Base / Threshold | Notes |
|---|---|---|---|
| Federal Income Tax | 10%–37% | No cap | Graduated brackets. Based on W-4 filing status and Publication 15-T percentage method tables. |
| Social Security (OASDI) | 6.2% employee | $176,100 (2025) | Withholding stops at wage base. Employer matches 6.2%. |
| Medicare (HI) | 1.45% employee | No limit | Employer matches 1.45%. |
| Additional Medicare Tax | 0.9% | $200,000 single/HOH; $250,000 MFJ; $125,000 MFS | Employee only. Employer withholds once individual wages exceed $200,000 in the calendar year. |
| Nebraska Income Tax | 2.26%–5.37% | Withholding rate schedule | Graduated. Withheld via the Circular EN percentage method after $2,360 per W-4N allowance, using the single or married chart. |
| NE withholding allowance | – | $2,360 each (2025) | From Form W-4N. Reduces annual wages before tax. Rises to $2,440 for 2026. |
| Employee disability / family leave | None | – | Nebraska has no state disability or paid-leave payroll deduction. |
| Employee unemployment (UI) | None | – | Unemployment is employer-funded; the 2026 taxable wage base is $9,000 ($24,000 for the highest-rated employers). |
| Local wage income tax | None | – | No city or county wage tax anywhere in Nebraska. |
How This Calculator Works
Hourly Mode: Gross Pay Per Period
Gross pay per period equals the hourly rate multiplied by hours worked per week, then scaled to the pay period. For biweekly pay: hourly rate × hours per week × 2. For weekly: hourly rate × hours per week. For semi-monthly and monthly: hourly rate × hours per week × (52 ÷ periods per year).
Salary Mode: Gross Pay Per Period
Gross pay per period equals annual salary divided by the number of pay periods per year. Weekly: ÷ 52. Biweekly: ÷ 26. Semi-monthly: ÷ 24. Monthly: ÷ 12.
Social Security Tax
Social Security is 6.2% of annualized gross wages up to the $176,100 wage base for 2025. The per-period amount is the annualized Social Security tax divided by pay periods. This calculator does not track year-to-date cumulative wages, so for workers approaching the wage base, actual withholding will stop mid-year once the limit is reached.
Medicare Tax
Standard Medicare is 1.45% on all gross wages. The calculator adds the 0.9% Additional Medicare Tax on annualized wages above $200,000, matching the employer withholding rule in IRS Topic 560: employers withhold the surtax once wages exceed $200,000 in a calendar year regardless of filing status. Your final liability on Form 8959 uses filing-status thresholds ($200,000 single/HOH, $250,000 MFJ, $125,000 MFS), so married filers may reconcile the difference at filing.
Federal Income Tax Withholding
The calculator follows IRS Publication 15-T Worksheet 1A (Percentage Method for Automated Payroll Systems) for 2025:
- Annualize the per-period gross pay (multiply by pay periods per year) - line 1c.
- Add Step 4a other income; subtract Step 4b additional deductions - lines 1d-1f.
- Subtract the line 1g allowance: $12,900 for married filing jointly or $8,600 otherwise. If the W-4 Step 2 box is checked, subtract $0 instead. The result is the Adjusted Annual Wage Amount (line 1i).
- Apply the Annual Percentage Method table for the W-4 filing status - the STANDARD schedule, or the Step 2 Checkbox schedule when the Step 2 box is checked - to get the tentative annual withholding (line 2g), then divide by pay periods (line 2h).
- Subtract Step 3 dependent credits divided by pay periods (line 3c).
- Add Step 4c extra withholding per period (line 4b).
Nebraska Income Tax Withholding
Nebraska withholds income tax using the percentage method in the Nebraska Department of Revenue's 2025 Circular EN. Unlike a flat-rate state, Nebraska applies a graduated rate schedule to the annual wage after allowances, choosing a single or married chart. The steps are:
- Annualize the per-period gross pay (multiply by pay periods per year).
- Multiply the number of Form W-4N allowances by $2,360 and subtract that from the annual wage. If the result is zero or less, no Nebraska tax is withheld.
- Apply the graduated withholding rate schedule below for your W-4N status, then divide by pay periods to get the per-period withholding.
| Annual wage after allowances (single, incl. head of household) | Withholding |
|---|---|
| $0 to $3,310 | $0 |
| $3,310 to $6,480 | 2.26% of the excess over $3,310 |
| $6,480 to $21,050 | $71.64 + 3.22% of the excess over $6,480 |
| $21,050 to $30,510 | $540.79 + 4.91% of the excess over $21,050 |
| $30,510 to $38,740 | $1,005.28 + 5.07% of the excess over $30,510 |
| $38,740 to $72,750 | $1,422.54 + 5.23% of the excess over $38,740 |
| Over $72,750 | $3,201.26 + 5.37% of the excess over $72,750 |
| Annual wage after allowances (married, incl. surviving spouse) | Withholding |
|---|---|
| $0 to $7,910 | $0 |
| $7,910 to $12,560 | 2.26% of the excess over $7,910 |
| $12,560 to $31,270 | $105.09 + 3.22% of the excess over $12,560 |
| $31,270 to $48,650 | $707.55 + 4.91% of the excess over $31,270 |
| $48,650 to $60,360 | $1,560.91 + 5.07% of the excess over $48,650 |
| $60,360 to $80,040 | $2,154.61 + 5.23% of the excess over $60,360 |
| Over $80,040 | $3,183.87 + 5.37% of the excess over $80,040 |
These are the 2025 Nebraska annual percentage-method withholding rates from Circular EN. The calculator applies the annual schedule and divides by pay periods, which reproduces the state's per-period tables to within about a cent. Your final Nebraska income tax is settled on Form 1040N, where the statutory brackets and the actual standard deduction and credits apply. Because withholding is an estimate, small differences are reconciled at filing.
What Nebraska Does Not Deduct
Nebraska has no state disability insurance, no paid family leave payroll deduction, and no employee unemployment tax. Unemployment insurance is funded entirely by employers through the Nebraska Department of Labor. There is also no local wage tax anywhere in Nebraska, so the only Nebraska line on a pay stub is the state income tax.
Real-World Paycheck Scenarios
Scenario 1: Single Worker Paid Biweekly
Dylan earns $65,000 per year at a firm in Omaha. He is paid biweekly, files single on his W-4, uses the single W-4N status, and claims one allowance. His biweekly gross is $65,000 ÷ 26 = $2,500.00.
Nebraska income tax detail (annualized): one allowance removes $2,360, so the annual wage after allowances is $65,000 − $2,360 = $62,640. On the single chart that is $1,422.54 + 5.23% of ($62,640 − $38,740) = $2,672.51 for the year, divided by 26 = $102.79 per paycheck. His effective Nebraska rate is about 4.1% of gross. Notice there are no disability, family leave, or unemployment lines, money a worker in New Jersey or Washington would see deducted.
Scenario 2: Married Two-Earner Household
Maria earns $95,000 as a project manager in Lincoln. She is paid biweekly, is married filing jointly on her W-4, uses the married W-4N status, and claims two allowances. Her biweekly gross is $95,000 ÷ 26 = $3,653.85.
Maria's Nebraska tax: two allowances remove $4,720, so the annual wage after allowances is $95,000 − $4,720 = $90,280, which on the married chart is $3,183.87 + 5.37% of ($90,280 − $80,040) = $3,733.76 for the year, divided by 26 = $143.61. Because the married chart is wider than the single chart, if Maria's spouse also works and also uses married status, the couple can under-withhold. Claiming fewer allowances or adding an amount on line 2 of Form W-4N raises each check's withholding and closes that gap at filing.
Practitioner Insight
The single most common Nebraska surprise we see is a blank or defaulted Form W-4N. The redesigned federal W-4 no longer carries Nebraska allowances, so an employee who only completed a federal W-4 is defaulted to single with zero allowances and over-withheld all year. People assume the two forms are the same and are startled to learn Nebraska has its own certificate. Filing a W-4N with the correct status and allowance count usually fixes an over-withholding complaint, though because each Nebraska allowance is worth only $2,360 of wages, about $123 a year at the 5.23 percent band, the dollar effect per allowance is smaller than in a state like Minnesota.
The second pattern is the 2026 rate cut catching people off guard mid-year. Nebraska has been phasing income tax rates down under LB 754, and the withholding tables drop again for 2026, with the top withholding rate falling from 5.37 percent to 4.60 percent. Employees who compare a late-2025 stub to an early-2026 stub see the Nebraska line shrink even though nothing about their pay changed. We flag it so clients do not assume a payroll error.
The third thing we watch is border commuting. Nebraska has no reciprocity with Iowa, Missouri, Kansas, Colorado, South Dakota, or Wyoming, so an Iowa resident working in Omaha has Nebraska tax withheld and takes an out-of-state credit at home rather than filing a reciprocity form. There is no W-4N shortcut to stop Nebraska withholding for a cross-border commuter, which trips up people who moved from a state pair that does have an agreement.
When This Calculator Gives a Less Accurate Estimate
- Pre-tax deductions not entered: A 401(k) or 403(b) contribution and Section 125 medical premiums reduce the wages subject to both federal and Nebraska income tax withholding. This calculator does not model pre-tax deductions, so actual income tax withholding is lower and net pay is typically higher than the estimate.
- 2026 rate cut: This calculator is labeled 2025 and uses the 2025 Circular EN schedule (top rate 5.37 percent, allowance $2,360). For 2026 Nebraska cut rates to a 2.26 to 4.60 percent schedule and raised the allowance to $2,440, so a 2026 paycheck has a slightly smaller Nebraska line.
- Wage-bracket versus percentage method: Nebraska also publishes wage-bracket withholding tables and a 1.5 percent special minimum-withholding rule for low wages with many allowances. Small employers using the bracket tables can differ by a few cents from the percentage method this calculator uses; both are approved and reconcile on Form 1040N.
- Year-to-date Social Security cap: The calculator annualizes Social Security evenly. For a worker who passes the $176,100 wage base mid-year, actual Social Security withholding stops at that point rather than spreading across every paycheck.
- Supplemental wages: Bonuses, commissions, and other supplemental pay can be withheld at Nebraska's flat 5 percent supplemental rate (2025), not the graduated schedule. For the federal supplemental math on a bonus, use the Bonus Tax Calculator.
Frequently Asked Questions
How is take-home pay calculated in Nebraska?
Nebraska take-home pay equals gross pay minus federal income tax withholding, Social Security (6.2%), Medicare (1.45%), and Nebraska income tax withholding. Federal withholding uses IRS Publication 15-T. Nebraska income tax is withheld with the Circular EN percentage method: annualize wages, subtract $2,360 for each Form W-4N allowance, then apply the graduated 2.26 percent to 5.37 percent withholding rate schedule for single or married status and divide by pay periods. Nebraska has no local wage income tax and no employee-paid disability, family leave, or unemployment contribution.
What are Nebraska's income tax withholding rates for 2025?
Nebraska's Circular EN percentage method uses six graduated rates on the annual wage after allowances for 2025: 2.26 percent, 3.22 percent, 4.91 percent, 5.07 percent, 5.23 percent, and 5.37 percent. For a single employee the 5.37 percent top rate begins once the wage after allowances exceeds $72,750. For 2026 Nebraska cut these rates: the schedule runs 2.26 percent to 4.60 percent, part of the LB 754 rate phase-down.
How does Form W-4N affect my Nebraska withholding?
Form W-4N is Nebraska's own withholding allowance certificate. Since 2020 a Nebraska Form W-4N must be completed for every federal Form W-4, because the redesigned federal W-4 no longer carries Nebraska allowances. The W-4N sets your Nebraska marital status (single, which also covers head of household, or married) and your number of allowances. Each allowance removes $2,360 of annual wages before the rate schedule is applied for 2025. If you do not file a W-4N, the employer must withhold as if you were single with zero allowances, which is the highest withholding.
What is a Nebraska withholding allowance worth?
Each Form W-4N allowance subtracts $2,360 of annual wages before Nebraska tax is figured for 2025 (rising to $2,440 for 2026). For a middle-income single worker in the 5.23 percent band, one allowance lowers annual Nebraska withholding by about $123 (2,360 times 5.23 percent). Claiming more allowances lowers withholding; claiming zero raises it. A newly hired employee who files no W-4N is treated as single with zero allowances.
Does Nebraska have a local city income tax?
No. Nebraska has no municipal or county wage income tax withheld from employees anywhere in the state, including Omaha, Lincoln, and Bellevue. A Nebraska pay stub shows federal taxes and the state income tax, with no city or local wage line. This differs from states such as Ohio, Kentucky, or Indiana, where cities or counties layer a local income tax on top of the state tax.
Does Nebraska deduct disability or paid family leave from my paycheck?
No. Nebraska has no state disability insurance, no paid family and medical leave payroll deduction, and no employee unemployment tax. Unemployment insurance is funded entirely by employers through the Nebraska Department of Labor. The only Nebraska line on a pay stub is the state income tax.
Does Nebraska have income tax reciprocity with other states?
No. Nebraska has no income tax reciprocity agreements with any state. A resident of Iowa, Missouri, Kansas, Colorado, South Dakota, or Wyoming who works in Nebraska has Nebraska income tax withheld, and their home state generally allows a credit for the tax paid to Nebraska. Nebraska also applies a convenience-of-the-employer rule for remote work assigned to a Nebraska office.
What is the Social Security wage base for 2025?
The Social Security wage base for 2025 is $176,100. Social Security tax at 6.2% applies to wages up to this amount, and withholding stops once cumulative wages exceed $176,100 for the year. Medicare has no wage base limit and continues at 1.45% on all wages. Employers withhold an additional 0.9% Medicare surtax on wages above $200,000 regardless of filing status; final liability thresholds are $250,000 for married filing jointly and $125,000 for married filing separately.
What To Do Next
If your Nebraska paycheck estimate looks off, first confirm you filed a Form W-4N with your employer (the federal W-4 does not set Nebraska withholding) and that the status and allowance count match what you intended, then check whether pre-tax benefit deductions (401k, health insurance) are lowering your taxable wages. If you are married and both spouses work, consider claiming fewer allowances or adding an amount on line 2 of the W-4N so you are not short at filing. To see how your withholding connects to your year-end return, read the Nebraska Payroll Taxes guide and our How Payroll Taxes Work guide.
For hourly workers who also receive overtime, the Hourly Paycheck Calculator lets you model specific hours and frequencies. For a generic multi-state view, use the Paycheck Calculator. To understand every line item on your Nebraska pay stub, see our How to Read a Pay Stub guide.
If you have self-employment income in addition to wages, the 1099 Tax Calculator estimates your full federal tax burden including self-employment tax. If you need to estimate quarterly payments on that income, use the Quarterly Tax Calculator. To track a filed state or federal refund, use the Refund Tracker.
Sources & Editorial Disclosure
- Nebraska Department of Revenue, 2025 Circular EN, Income Tax Withholding Percentage Method Tables (wages paid on or after January 1, 2025): single and married annual schedules (2.26% to 5.37%). The annual schedule reproduces the state's per-period tables to within about a cent
- Nebraska Department of Revenue, 2025 Circular EN Instructions: value of one withholding allowance ($2,360 annual for 2025), Form W-4N requirement, 5% supplemental rate
- Nebraska Department of Revenue, 2026 Circular EN, Percentage Method Tables (wages on or after January 1, 2026): the reduced 2.26% to 4.60% schedule and $2,440 allowance (LB 754 phase-down)
- Nebraska Department of Revenue, Form W-4N, Nebraska Withholding Allowance Certificate
- IRS Publication 15-T (2025), Employer's Tax Guide to Federal Income Tax Withholding
- IRS Topic 751, Social Security and Medicare Withholding Rates
- Social Security Administration, 2025 Wage Base ($176,100)
- Authored by Munib Ur Rehman · Reviewed by Nausheen Shahid, LMN Tax Inc. Not affiliated with the IRS or the Nebraska Department of Revenue. For informational purposes only.