Nebraska State Income Tax Withholding
Reference Number: NFC-24-1707427926
Published: April 9, 2024
Effective: Pay Period 05, 2024
Summary
The state income tax withholding formula for Nebraska includes the following changes:
- The annual amount per withholding allowance has increased from $2,140 to $2,250.
- The single and head of household withholding table has been updated.
- The married withholding table has been updated.
Note: It is the responsibility of the Agency personnel office to process the W-4N form.
Tax Formulas
|
State Abbreviation: |
NE |
|---|---|
|
State Tax Withholding State Code: |
31 |
|
Acceptable Exemption Form: |
W-4/W-4N |
|
Basis for Withholding: |
State or Federal Exemptions (see the Additional Information section) |
|
Acceptable Exemption Data: |
Y00, N00 |
|
TSP Deferred: |
Yes |
|
Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: Y00 - Employee provides proof of number of exemptions claimed to receive the lower withholding percentage, if applicable. N00 - Employee no longer wants to provide proof of number of exemptions claimed to receive the lower withholding percentage. |
|
Additional Information: |
A State tax certificate is required unless the employee has submitted a prior to 2020 Federal Form W-4, since Federal exemptions are no longer used in the computation of the State formula. Employees who have not previously submitted a Form W-4N and have submitted a 2020 or later Federal Form W-4, will default to Single and zero (S00). Employees who have not previously submitted a Form W-4N and have not submitted a 2020 or later Federal Form W-4, will default to the prior to 2020 Federal Form W-4 submission. Y00 will be entered for employees who have provided proof that they are entitled to lower withholding than required by LB223. |
Withholding Formula (Effective Pay Period 05, 2024)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees 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 (e.g., taxable life insurance) to the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- Determine the exemption allowance by applying the following guideline and subtracting this amount from the results in step 4 to compute the taxable income: Multiply the number of Allowances by $2,250.
- Apply the taxable income computed in step 5 to the following tables to determine the Nebraska tax withholding:
Tax Withholding Table for Single or Head of Household
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
| Over $0 but not over $3,210 | $0.00 |
| Over $3,210 but not over $6,290 | $0.00 plus 2.26% of excess over $3,210 |
| Over $6,290 but not over $20,440 | $69.61 plus 3.22% of excess over $6,290 |
| Over $20,440 but not over $29,620 | $525.24 plus 4.91% of excess over $20,440 |
| Over $29,620 but not over $37,610 | $975.98 plus 5.77% of excess over $29,620 |
| Over $37,610 but not over $70,630 | $1,437.00 plus 5.94% of excess over $37,610 |
| Over $70,630 | $3,398.39 plus 6.10% of excess over $70,630 |
Tax Withholding Table for Married
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
| Over $0 but not over $7,680 | $0.00 |
| Over $7,680 but not over $12,190 | $0.00 plus 2.26% of excess over $7,680 |
| Over $12,190 but not over $30,360 | $101.93 plus 3.22% of excess over $12,190 |
| Over $30,360 but not over $47,230 | $687.00 plus 4.91% of excess over $30,360 |
| Over $47,230 but not over $58,600 | $1,515.32 plus 5.77% of excess over $47,230 |
| Over $58,600 but not over $77,710 | $2,171.37 plus 5.94% of excess over $58,600 |
| Over $77,710 | $3,306.50 plus 6.10% of excess over $77,710 |
- If the employee is eligible for lower withholding than required by Nebraska LB223, proceed to step 8. If the employee claims SINGLE and claims one or fewer exemptions, proceed to
step 8. If the employee claims MARRIED and claims two or fewer exemptions, proceed to step 8. Otherwise, calculate the annual tax amount required by LB223 as follows:- Calculate the annual tax following steps 1 through 6 except use one exemption in step 5 for SINGLE filers and use two exemptions in step 5 for MARRIED filers.
- Multiply the annual tax by 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 calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Nebraska tax withholding.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select Taxes from the Publications Library section to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.