December 18, 2025
Each state has unique income tax withholding rules. Below are Nebraska's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates .
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State Abbreviation | NE |
|---|---|
| State Tax Withholding State Code | 31 |
| Acceptable Exemption Form | W-4N |
| Basis For Withholding | State Exemptions |
| Acceptable Exemption Data | S, M, H / Number of Exemptions |
| 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 (e.g. S01). |
| Additional Information | Nebraska uses specific percentage method tables with a 1.5% minimum withholding rule. The value of one allowance for 2026 is $2,440. |
| Official State Tax Website | Visit Official Website |
Nebraska's Form W-4N determines the number of allowances. Generally, one allowance is claimed for the employee, one for a spouse (if filing jointly), and one for each dependent.
| Component | Allowances | Notes |
|---|---|---|
| Yourself | 1 allowance | Base allowance |
| Spouse | 1 allowance | If filing jointly |
| Dependents | 1 allowance each | Per dependent |
Total Allowances = Yourself + Spouse + Dependents
The value of one allowance for 2026 is $2,440.
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
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 = $2,440 × Number of Exemptions
Apply the taxable income computed in step 5 to the tax withholding table (Single/Head of Household or Married) to determine the annual Nebraska tax withholding.
Check for Minimum Withholding (LB 223): If the tax calculated in Step 6 is less than 1.5% of the taxable wage amount, perform the following check: Calculate the tax for a Single employee with 1 allowance (if Single/Head of Household) or a Married employee with 2 allowances (if Married). Multiply that amount by 50% (0.50). If this 'Minimum Tax' is greater than the tax from Step 6, use the Minimum Tax. Otherwise, use the tax from Step 6.
Divide the annual Nebraska tax withholding by 26 to obtain the biweekly Nebraska tax withholding.
Want to calculate in an easier way? Learn how to calculate Nebraska taxes via ezPaycheck below.
Learn More| Withholding Allowance | Annual Amount |
|---|---|
| 1 | $2,440 |
Formula: $2,440 × Number of Exemptions
2026 Allowance Value per Circular EN (Page 9).
Nebraska requires a minimum withholding check (LB 223). If the standard calculation yields less than 1.5% of taxable wages, the withholding must be at least 50% of the tax liability for a Single filer with 1 allowance or a Married filer with 2 allowances.
Minimum Tax = 0.50 × Tax(Single|1 OR Married|2)
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $3,430 | $0 | + | 0.00% | $0 |
| $3,430 | $6,710 | $0 | + | 2.26% | $3,430 |
| $6,710 | $21,810 | $74 | + | 3.22% | $6,710 |
| $21,810 | $31,610 | $560 | + | 4.21% | $21,810 |
| $31,610 | $40,130 | $973 | + | 4.35% | $31,610 |
| $40,130 | $75,370 | $1,344 | + | 4.48% | $40,130 |
| $75,370 | and over | $2,922 | + | 4.60% | $75,370 |
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $8,190 | $0 | + | 0.00% | $0 |
| $8,190 | $13,010 | $0 | + | 2.26% | $8,190 |
| $13,010 | $32,400 | $109 | + | 3.22% | $13,010 |
| $32,400 | $50,400 | $733 | + | 4.21% | $32,400 |
| $50,400 | $62,530 | $1,491 | + | 4.35% | $50,400 |
| $62,530 | $82,920 | $2,019 | + | 4.48% | $62,530 |
| $82,920 | and over | $2,932 | + | 4.60% | $82,920 |
ezPaycheck simplifies payroll calculations, including Nebraska's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date Nebraska state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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