How to Calculate 2016 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 2016 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.
Tax rate used in calculating Nebraska state tax for year 2016
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. <
Need a Better Way to Calculate Nebraska State Income Tax Withholdings?
Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
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.
Add taxable fringe benefits (taxable life insurance, etc.) to the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute the taxable income.
Exemption Allowance = >$1,900< x Number of Exemptions
Apply the taxable income computed in step 5 to the following table to determine the annual Nebraska tax withholding.
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
5,325
.00
plus
>2.26%
2,975
5,325
17,275
53.11
plus
3.22%
5,325
17,275
25,025
437.90
plus
4.91%
17,275
25,025
31,775
818.43
plus
6.20%
25,025
31,775
59,675
1,236.93
plus
6.59%
31,775
59,675
and over
3,075.54
plus
6.95%
59,675<
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
10,300
.00
plus
2.26%
7,100
10,300
25,650
72.32
plus
3.22%
10,300
25,650
39,900
566.59
plus
4.91%
25,650
39,900
49,500
1,266.27
plus
6.20%
39,900
49,500
65,650
1,861.47
plus
6.59%
49,500
65,650
and over
2,925.76
plus
6.95%
65,650<
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.
Divide the annual Nebraska tax withholding by 26 to obtain the biweekly Nebraska tax withholding.
in house payroll tax solution for Nebraska small businesses here.
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