Nebraska State Income Tax Withholding Information
State Abbreviation: |
NE |
State Tax Withholding State Code: |
31 |
Acceptable Exemption Form: |
W-4 |
Basis for Withholding: |
Federal Exemptions (S, M/Number of Allowances) |
Acceptable Exemption Data: |
Y00, N00 |
TSP Deferred: |
Yes |
Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: |
Additional Information: |
A State tax certificate is not required since Federal exemptions are 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. |
Additional Resources: | TAXES 13-15, Nebraska State Income Tax Withholding |
Withholding Formula (Effective Pay Period 06, 2013)
- 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 amount computed in step 1.
- Add taxable fringe benefits (i.e., taxable life insurance) to the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
- Determine the exemption allowance by applying the following guidelines and subtract this amount from the results in step 4 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 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
$0
plus
0.00%
$0
2,975
5,325
0
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
$0
plus
0.00%
$0
7,100
10,300
0
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 one (1) or fewer exemptions, proceed to step 8. If the employee claims MARRIED and claims two (2) or fewer exemptions, proceed to step 8. Otherwise, calculate the annual tax amount as required by LB223 as follows:
- Calculate the annual tax following step 1 through 6 except use one (1) exemption in step 5 for SINGLE filers and use two (2) exemptions in step 5 for MARRIED filers.
- Multiply the annual tax by one-half (0.50) to get the annual minimum tax.
- 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 exemptions claimed.
- Divide the annual Nebraska tax withholding by 26 to obtain the biweekly Nebraska tax withholding.