Clear Money Guide
What this state guide covers
A quick view of the questions, practical details and source notes below.
Comparison tables scroll horizontally on smaller screens.
2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.
Updated July 24, 2026. Quick answer: Nebraska’s two headlines run in opposite directions. Income side: Social Security is 100% exempt regardless of income (completed TY2024), and the top income-tax rate falls to 4.55% for 2026 on its way to 3.99% in 2027 (LB 754 schedule) — though pensions, 401(k) and IRA withdrawals are taxable with no general retirement exclusion, apart from military retirement benefits and Civil Service Retirement System annuities. Death side: Nebraska’s inheritance tax is paid to the county treasurer and credited to county funds, and repeal efforts keep failing — the LB 310 class tables below are fully in force for 2026.
Federal civil service pensions in Nebraska: does Nebraska tax federal pensions.
More on public pension systems, topic by topic: Nebraska NPERS reemployment after retirement, Nebraska NPERS early retirement and Nebraska NPERS qualified domestic relations order.
More state retirement-income schedules, line by line: Nebraska Schedule I.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Nebraska tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Nebraska tax 403(b) and 457(b) withdrawals.
Drawing a pension? Whether the state withholds tax from it, from its own documents: Nebraska tax withholding on pension payments.
Married, or planning for a spouse’s death? Whether the state is a community property state, from its own statutes: Is Nebraska a community property state?.
Selling your home? How the state taxes the profit, from its own tax documents: Does Nebraska tax the profit from selling your home?.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Nebraska tax withholding on IRA and 401(k) withdrawals.
For trust income specifically: does Nebraska tax trust income.
For dividends and interest specifically: does Nebraska tax dividends and interest.
Contributing to an HSA? How the state taxes it, from its own tax documents: Does Nebraska tax HSA contributions?.
For annuity payments specifically: does Nebraska tax annuity income.
Planning for what you leave behind? The state’s estate tax answer, from its own tax documents: Does Nebraska have an estate tax?.
Saving for a child’s college? The state’s 529 break has its own page: Nebraska 529 plan tax deduction.
For military retired pay: does Nebraska tax military retirement.
For the sale of stocks, funds or real estate: does Nebraska tax capital gains.
For 401(k) and IRA withdrawals specifically: does Nebraska tax 401(k) and IRA withdrawals.
Before the tax question, the NPERS School Plan payment options, refund and buyback rules: Nebraska NPERS retirement decisions.
The rate-schedule correction
Undated guides quote Nebraska’s top rate as 5.84% or 5.20% — both stale. LB 754 (2023) steps the top rate down annually: 5.84% (2024), 5.20% (2025), 4.55% (2026), 3.99% (2027). The Social Security exemption is likewise done news, not pending news: LB 873’s phase-out was accelerated, and benefits have been fully exempt since tax year 2024 regardless of income (Neb. Rev. Stat. §77-2716). Military retirement has been 100% excluded since TY2022 (LB 387). Nebraska has no general exclusion for pensions, 401(k)s or IRAs. The exceptions in Neb. Rev. Stat. §77-2716 are the military retirement exclusion and, for taxable years beginning on or after January 1, 2024, a subtraction for Civil Service Retirement System annuities earned for federal employment.
How Nebraska taxes retirement income (statute-cited)
| Income tax | Graduated, 2.46% to 4.55% top rate for 2026 (LB 754; falls to 3.99% in 2027) |
| Social Security | Not taxed — 100% exempt since TY2024, no income limits |
| Pension / 401(k) / IRA | No general retirement exclusion; Civil Service Retirement System annuities (TY2024 and later) and military retirement benefits can be subtracted (§77-2716) |
| Military retirement | 100% excluded since TY2022 (LB 387) |
| Estate tax | None |
| Inheritance tax | Yes, paid to the county, by heir class (LB 310 tables below) |
The county inheritance tax (LB 310 tables)
For deaths on or after January 1, 2023 (rates set by LB 310 of 2022, still current for 2026; Neb. Rev. Stat. §§77-2004–77-2006): Class 1 immediate relatives (parents, grandparents, siblings, children and other lineal descendants, and a person who stood in the acknowledged relation of a parent to the decedent for at least ten years) pay 1% above a $100,000 exemption per beneficiary; Class 2 remote relatives (aunts/uncles, nieces/nephews and their descendants) pay 11% above $40,000; Class 3 all others pay 15% above $25,000. Fully exempt: surviving spouses, charities, and any beneficiary under age 22. The tax is paid to the county treasurer and credited to county funds, which is why it survives: LB 468 (2025), the latest cut/repeal attempt, advanced but was not enacted. Full table: inheritance tax by state.
Probate: reasonable fees and a $100,000 affidavit
Nebraska is a UPC state: personal-representative and attorney compensation is “reasonable,” subject to court review (Neb. Rev. Stat. §§30-2480, 30-2482) — no percentage schedule. Small estates: up to $100,000 of personal property (net of liens) passes by affidavit with a 30-day wait (§30-24,125). Context: probate cost by state · small-estate limits by state.
Is Nebraska a good state to retire in for taxes?
Improving fast on the income side — exempt Social Security plus a top rate heading under 4% makes Nebraska genuinely competitive for SS-heavy retirees, though heavy 401(k) spenders still pay on every dollar. The estate side is the differentiator to plan around: children pay only 1% above $100,000 each, but a nephew inheriting $140,000 owes his county $11,000, and an unrelated heir pays 15% of everything above $25,000 — numbers that argue for beneficiary-aware planning, especially against neighboring Iowa, which just finished repealing its inheritance tax.
Nebraska vs. common alternatives
| State | Social Security | Pension / 401(k) / IRA | Estate tax | Inheritance tax |
|---|---|---|---|---|
| Nebraska | Not taxed | No general exclusion; top rate 4.55% (2026) | None | Yes, paid to the county, 1/11/15% |
| Iowa | Not taxed | Fully exempt at 55+ | None | None (repealed 2025) |
| Colorado | Not taxed at 65+; 55–64 AGI-tested | $20,000 (55–64) / $24,000 (65+) subtraction caps | None | None |
| Florida | Not taxed | Not taxed (no income tax) | None | None |
Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.
Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and Nebraska may treat it differently from the retirement income above — see how all 51 jurisdictions tax Roth conversions.
Finding a financial advisor in Nebraska
Per the SEC’s July 2026 Investment Adviser roster, Nebraska has 70 SEC-registered advisory firms (#35 nationally) managing $249.8 billion (#29 by AUM). Full breakdown: Nebraska advisor statistics. Reviewing fee structures: fee-drag calculator.
Thinking about moving?
Four taxes change when you move state in retirement, not one: income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Corridor comparisons involving Nebraska:
Compare any two states with the retirement tax comparison tool, or browse all corridors at the relocation hub.
What probate costs in Nebraska
Nebraska sets probate compensation by a “reasonable fee” standard with no percentage schedule, so anyone quoting a firm figure is estimating. And the small-estate shortcut of $100,000 does not clear a solely owned house on its own, which is the detail most guidance omits. Full detail with the governing statute, the court filing fee and the threshold: Nebraska probate cost. To price a specific estate, use the probate cost calculator.
Cite or share this guide
Suggested citation: Clear Money Guide, “Nebraska Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/nebraska-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.
Figures verified against Neb. Rev. Stat. 77-2004 to 77-2006, 77-2715.03, 77-2716, 30-2480, 30-2482 and 30-24,125, LB 838 (2026) and the Nebraska Department of Revenue military retirement page on September 30, 2026; the no-estate-tax and county-level statements, the charity exemption, the comparison-state rows and the SEC roster figures were not re-checked.
Primary sources
- https://revenue.nebraska.gov/about/frequently-asked-questions/military-retirement-benefits-exclusion
- https://incometaxbystate.com/nebraska
- https://ustax.tools/nebraska-tax-brackets-2026/
- https://nebraskalegislature.gov/laws/statutes.php?statute=77-2004
- https://update.legislature.ne.gov/?p=35450
- https://nebraskaexaminer.com/2025/04/29/nebraska-advances-proposal-to-reduce-inheritance-tax-as-budget-gap-grows/
- https://nebraskalegislature.gov/laws/statutes.php?statute=30-24%2C125
- https://nebraskalegislature.gov/laws/statutes.php?statute=33-125
- https://law.justia.com/codes/nebraska/chapter-33/statute-33-125/
Compare your next step
Not ready to talk to anyone? Browse our guides.Optional next step
Explore an adviser match
Compare the services and the full fee before deciding whether to hire anyone.
- No fee to request a match
- No obligation to hire
Expect questions about your situation, your name, email and phone, and phone verification by text. A match is not guaranteed.
The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide is paid when you submit the form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
Opens here. Nothing loads and nothing reaches Kapitalwise until you press the button.
How our partner relationships workCompare an adviser match before you decide
Ask about the full fee, what it covers and how the adviser is paid. A match is an introduction, not a recommendation from Clear Money Guide.
- Free matching service
- No obligation to hire
The matching service is run by WiserAdvisor, an independent advisor-matching company. It opens on their site, asks for your ZIP code and a few questions, and matches you with 2 to 3 vetted advisors. It is free to you. WiserAdvisor states the service is built for portfolios of $250,000 and above. By submitting, you consent to emails, phone calls and text messages from WiserAdvisor and up to three advisors, so expect to be contacted. Advisers pay for the introduction. Clear Money Guide is paid when you complete the form, whether or not you ever hire anyone. There is no obligation to hire anyone.
Continue to WiserAdvisorOpens on WiserAdvisor’s site in a new tab.
Source: WiserAdvisor’s service description