Nebraska payroll taxes
Every tax withheld from a Nebraska paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: oui.doleta.gov, taxfoundation.org, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Nebraska SUTA | — | 1.25% (new) | $9,000 |
| Nebraska income tax | 2.46%–4.55% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
Nebraska charges new employers 1.25% on the first $9,000 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0% to 5.4%. Wage base is $24,000 for employers in the highest rate category (20).
State Unemployment Insurance Tax (SUIT) portion is included in the combined rate
Register and file with the Nebraska unemployment tax agency.
Income tax withholding
Nebraska has a graduated income tax with 3 brackets, from 2.46% up to 4.55% on taxable income over $24,760 for single filers.
Frequently asked questions
- What payroll taxes do employers pay in Nebraska?
- Social Security, Medicare, federal unemployment (FUTA) and Nebraska unemployment insurance (SUTA).
- What is the Nebraska SUTA wage base for 2026?
- $9,000 per employee.
- Does Nebraska require state income tax withholding?
- Yes. Employers withhold Nebraska income tax based on the employee's state withholding certificate or federal W-4.