Some of Nebraska’s income tax rates, including the rate used for supplemental payments and nonperiodic pensions and annuities, decreased for 2026, according to the state revenue department’s withholding methods.
The top four of the six nonzero income tax rates used in the withholding methods decreased from 2025 and range from 2.26% to 4.6%, instead of from 2.26% to 5.37%. The percentage method’s tax brackets were adjusted. The value of a state allowance increased to $2,440 annually, from $2,360, the department said.
Payments that previously had a flat withholding rate of 5% now have a rate of 3.5% starting in 2026, ...
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