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How to Calculate 2017 Nebraska State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2017 Nebraska state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

Learn more about the in house payroll tax solution for Nebraska small businesses here.
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Nebraska State Tax Tables

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2019 Nebraska State Tax Witholding Table
2018 Nebraska State Tax Witholding Table
2017 Nebraska State Tax Witholding Table
2016 Nebraska State Tax Witholding Table
2015 Nebraska State Tax Witholding Table
2014 Nebraska State Tax Witholding Table
2013 Nebraska State Tax Witholding Table
2012 Nebraska State Tax Witholding Table
2011 Nebraska State Tax Witholding Table
2010 Nebraska State Tax Witholding Table

Tax rate used in calculating Nebraska state tax for year 2017

State Abbreviation:

NE

State Tax Withholding State Code:

31

Acceptable Exemption Form:

None

Basis For Withholding:

Federal Exemptions

Acceptable Exemption Data:

None

TSP Deferred:

Yes

Special Coding:

>Determine the Total Number Of Allowances Claimed field as follows:
First Position - S = Single; H = Head of Household; M = Married; 0 = Zero.
Second and Third Positions - Enter the total number of allowances claimed. If less than 10, precede with a zero.<

Additional Information:

A state tax certificate is not required since Federal Exemptions are used in the computation of the state formula. >However, if a state tax certificate is on file, it will be used in the computation of the state formula. Y00 will be entered for employees who have provided proof that they are entitled to lower withholding than required by LB223. <




Withholding Formula >(Nebraska Effective 2017) <
  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.

  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment (s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the adjusted gross biweekly wages.
  3. Add taxable fringe benefits (taxable life insurance, etc.) to the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
  5. Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute the taxable income.
  6. Exemption Allowance = >$1,960< x Number of Exemptions

  7. Apply the taxable income computed in step 5 to the following table to determine the annual Nebraska tax withholding.

  8. Tax Withholding Table
    Single or Head of Household

    If the Amount of
    Taxable Income Is:

    The Amount of Nebraska
    Tax Withholding Should Be:


    Over:

    But Not
    Over:

    Of Excess
    Over:

    $        0 $  2,975 $         .00 plus 0.00% $         0
        2,975     5,480            .00 plus >2.26%     2,975
        5,480   17,790        56.61 plus 3.22%     5,480
      17,790   25,780      452.99 plus 4.91%   17,790
      25,780   32,730      845.30 plus 6.20%   25,780
      32,730   61,470   1,276.20 plus 6.59%   32,730
      61,470   and over   3,170.17 plus 6.95%   61,470<


    Married

    If the Amount of
    Taxable Income Is:

    The Amount of Nebraska
    Tax Withholding Should Be:


    Over:

    But Not
    Over:

    Of Excess
    Over:

    $         0 $  >7,100 $       .00 plus 0.00% $        0
        7,100     10,610          .00 plus 2.26%     7,100
        10,610   26,420       79.33 plus 3.22%     10,610
      26,420   41,100     588.41 plus 4.91%   26,420
      41,100   50,990  1,309.20 plus 6.20%   41,100
      50,990   67,620  1,922.38 plus 6.59%   50,990
      67,620   and over  3,018.30 plus 6.95%   67,620<

  9. If the employee is eligible for the lower withholding than required by Nebraska LB223, proceed to Step 8. If the employee claims SINGLE and claims 1 or fewer exemptions, proceed to Step 8. If the employee claims MARRIED and claims 2 or fewer exemptions, proceed to Step 8. Otherwise, calculate the annual tax amount as required by LB223 as follows:

    a. Calculate the annual tax following Step 1 through 6 except use 1 exemption in Step 5 for SINGLE filers and use 2 exemptions in Step 5 for MARRIED filers.

    b. Multiply the annual tax by one-half (0.50) to get the annual minimum tax.

    c. If the annual minimum tax is greater than the annual tax based on exemptions claimed, then the annual tax amount is equal to the annual minimum tax. Otherwise, the annual tax amount is equal to the annual tax based on exemption claimed.
  10. Divide the annual Nebraska tax withholding by 26 to obtain the biweekly Nebraska tax withholding.
 

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