NEBRASKA RETIREMENT INCOME TAX · TAX YEAR 2026
Does Nebraska tax Social Security and retirement income?
Nebraska does not tax Social Security benefits. Nebraska taxes pensions and 401(k) and IRA withdrawals at its regular rates, but exempts military retirement pay. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays $453 in Nebraska income tax for 2026.
Your estimate
- Nebraska income tax
- $452.80
- Federal income tax
- $1,810.00
- Total income tax
- $2,262.80
Subtracted from Nebraska income
- Social Security
- $11,300.00
- Additional standard deduction (65+)
- $2,000.00
Not yet published for 2026: Additional standard deduction at 65, unmarried $2,000 (latest published, 2025); Additional standard deduction at 65, married, each $1,650 (latest published, 2025).
Railroad retirement is not modeled.
Nebraska tax at different retirement incomes
Nebraska income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $102 | $0 |
| $40,000 | $849 | $228 |
| $60,000 | $1,759 | $930 |
| $100,000 | $3,579 | $2,641 |
| $150,000 | $5,854 | $4,916 |
Does Nebraska tax Social Security?
No. Nebraska subtracts the full amount of Social Security benefits included in federal AGI.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and Nebraska taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and Nebraska taxes none of it.
Does Nebraska tax pensions?
Yes. Private pensions and civilian government pensions are taxed at the regular rates, with no exclusion or age break. Military retirement pay from any branch of the uniformed services is excluded in full at any age, and railroad retirement benefits are exempt.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension Nebraska exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $0 | $453 |
| Nebraska government | $0 | $453 |
| Federal civil service | $0 | $453 |
| Military | $20,000 | $0 |
Does Nebraska tax IRA and 401(k) withdrawals?
Yes. IRA and 401(k) withdrawals are taxed at the regular rates, with no exclusion. Qualified Roth IRA withdrawals are not taxed.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays $102 in Nebraska income tax for 2026.
At what age do retirement tax breaks start in Nebraska?
At 65, Nebraska's standard deduction rises by $2,000 (latest published, 2025) for an unmarried filer 65 or older, or by $1,650 (latest published, 2025) for each married spouse 65 or older. The Social Security and military retirement exclusions have no age requirement.
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 64 | $523 | $695 |
| 65Additional standard deduction (65+) | $453 | $579 |
What the calculator leaves out
Railroad retirement is not modeled.
- Heads of household use the single and separate filers the married add-on; the 2025 chart shows only single and joint.
The calculator uses Nebraska rules from the 2025 forms and instructions, the latest published.
Figures not yet published for 2026
- Additional standard deduction at 65, unmarried: $2,000 (latest published, 2025).
- Additional standard deduction at 65, married, each: $1,650 (latest published, 2025).
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.