Nebraska Retirement Taxes 2026: 4.55% Rate, Inheritance Tax

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 remain fully taxable with no general retirement exclusion. Death side: Nebraska is the only state in America that levies inheritance tax at the county level, and repeal efforts keep failing — the LB 310 class tables below are fully in force for 2026.

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). What Nebraska never built: any exclusion for pensions, 401(k)s or IRAs — every withdrawal dollar is taxed as ordinary income.

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	Fully taxable as ordinary income — no general retirement exclusion
Military retirement	100% excluded since TY2022 (LB 387)
Estate tax	None
Inheritance tax	Yes — county-levied, 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, siblings, children, grandchildren — 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 levied and kept by counties — 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 loses 15% — 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	Fully taxable; top rate 4.55% (2026)	None	Yes — county tax, 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.

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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:

Nebraska to Florida retirement taxes

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.

Nebraska Retirement Taxes (2026): The Rate Keeps Falling — but the County Inheritance Tax Survived