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NE · payroll profile

Nebraska

Everything an out-of-state employer needs before running a Nebraska payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 4.55%
Reciprocal agreements
None
SUI wage base 2026
$9,000
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 4.55%
Withholding certificate W-4N
Employee's Nebraska Withholding Allowance Certificate
Accepts federal Form W-4 No
Convenience-of-the-employer rule Yes
Remote days worked outside Nebraska for a Nebraska employer can still be sourced to Nebraska unless the arrangement is an employer necessity.
Nonresident withholding threshold 7 days or $5,000
Nebraska applies a CONVENIENCE-OF-THE-EMPLOYER rule, softened in 2024. Per the 2026 Nebraska Circular EN: if a nonresident works SEVEN employment duty days or fewer in Nebraska, wages earned outside Nebraska for the employee's own convenience are not subject to Nebraska withholding; once the employee exceeds seven Nebraska days, the convenience rule applies to all such wages. Separately, no withholding is required for a nonresident attending a conference or training in Nebraska who works in multiple states, is present in Nebraska seven days or fewer, AND earns $5,000 or less for Nebraska work. The 7-day and $5,000 tests are conjunctive for the conference/training exception.
Local income taxes No
No local personal income or wage taxes in Nebraska.

Reciprocity

States that exempt Nebraska residents

A Nebraska resident working in these states files that state's certificate and is taxed only by Nebraska.

District of Columbia

Unemployment insurance and paid leave

Taxable wage base 2026 $9,000
2025 base was $9,000.
New employer rate 1.25%
Taxable wage base is $9,000 for most employers and $24,000 for employers assigned to the highest (Category 20) tax rate group.
Experience rate range 0% – 5.4%
Experience-rating method reserve ratio
Employee UI contribution No
Paid family / medical leave No

Employer registration

Tax agency
Nebraska Department of Revenue
UI agency
Nebraska Department of Labor

Sources

revenue.nebraska.gov · revenue.nebraska.gov · nj.gov · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.