Nebraska tax deductions and write-offs (2026)

No. Nebraska fully exempts military retired pay from state income tax (100% since tax year 2022). Other retirement income: Pensions and 401(k)/IRA withdrawals are taxed as ordinary income; Nebraska has no general pension or IRA exclusion.

Yes. Pensions and 401(k)/IRA withdrawals are taxed as ordinary income; Nebraska has no general pension or IRA exclusion.

No. Since tax year 2024, Nebraska excludes all Social Security benefits included in federal AGI, at any income level. LB 754 (2023) moved the full exclusion up from 2025 to 2024.

Yes: Nebraska offers the Nebraska Earned Income Credit, 10% of the federal EITC (refundable). Residents and part-year residents only (prorated for part-year); nonresidents cannot claim it.

Only instead of income tax: itemizers in Nebraska pick sales tax (5.5% state rate, about 6.98% with local taxes) or state income tax, whichever is bigger. Vehicles pay the 5.5% state rate plus any local sales tax in effect at the address where the vehicle is registered, collected by the county treasurer.

Yes on your federal return if you itemize, within the $40,400 SALT cap. Nebraska adds its own break: Refundable credit for community college property taxes paid (Form PTC); school tax credit now comes off your tax bill.

No: Nebraska doesn't offer a renter's credit or rent rebate. Nebraska has no state tax credit or rebate specifically for renters. Nebraska's homestead exemption requires owning and living in the home, and its refundable property tax credits go to people who pay property taxes directly. Lower-income renters can still claim Nebraska's earned income credit: 10% of the federal EITC.

Partly: Nebraska's motor vehicle tax is based on your vehicle's value, so it's deductible as personal property tax if you itemize. Base tax is set by MSRP range and reduced each year by age, reaching $0 at 14 years; revenue goes to local schools and governments.

For 2026 Nebraska has three rates of 2.46%, 3.51% and 4.55% (single: over $24,760 taxed at 4.55%; MFJ: over $49,530), down from a 5.20% top rate in 2025 and scheduled to fall to 3.99% in 2027.

Yes on your Nebraska return: $10,000 per return (single or joint); $5,000 MFS. Only contributions to the state's own plan count. NE plans only; incoming rollovers deductible; K-12 withdrawals are nonqualified (recaptured) until K-12 tuition becomes qualified in 2029.

No state child tax credit, but Nebraska has a child care credit: Up to 100% of the federal child and dependent care credit at federal AGI of $22,000 or less, phasing down to 25% above $29,000. Refundable at $29,000 or less; nonrefundable above that. Personal exemption credit of $171 per dependent (2025). Per the National Women's Law Center, Nebraska also has a separate Child Care Tax Credit of up to $2,000 per eligible child in qualifying child care (income-tested); details not independently verified. Nebraska does have an earned income credit: 10% of the federal EITC.

Yes, as a business expense: Nebraska charges $100 online / $110 in office to form an LLC; ongoing: $25 online / $30 paper biennial report. Biennial report due April 1 of odd-numbered years (delinquent June 16). Notice of organization must be published 3 consecutive weeks, plus $25 proof-of-publication filing.