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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 802
Introduced by Revenue Committee: von Gillern, 4, Chairperson; Bostar, 29;
Jacobson, 42; Kauth, 31; Murman, 38.
Read first time January 07, 2026
Committee: Revenue
A BILL FOR AN ACT relating to revenue and taxation; to amend section1
77-2715.03, Revised Statutes Cumulative Supplement, 2024; to change2
individual income tax rates; and to repeal the original section.3
Be it enacted by the people of the State of Nebraska,4
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Section 1. Section 77-2715.03, Revised Statutes Cumulative1
Supplement, 2024, is amended to read: 2
77-2715.03 (1) For taxable years beginning or deemed to begin on or3
after January 1, 2013, and before January 1, 2014, the following brackets4
and rates are hereby established for the Nebraska individual income tax:5
Individual Income Tax Brackets and Rates6
Bracket 7Single Married, Head of Married, Estates Tax
Number 8 Individuals Filing Household Filing and Rate
9 Jointly Separate Trusts
1 10 $0-2,399 $0-4,799 $0-4,499 $0-2,399 $0-499 2.46%
2 11 $2,400- $4,800- $4,500- $2,400- $500-
12 17,499 34,999 27,999 17,499 4,699 3.51%
3 13 $17,500- $35,000- $28,000- $17,500- $4,700-
14 26,999 53,999 39,999 26,999 15,149 5.01%
4 15 $27,000 $54,000 $40,000 $27,000 $15,150
16 and Over and Over and Over and Over and Over 6.84%
(2)(a) For taxable years beginning or deemed to begin on or after17
January 1, 2014, the following brackets and rates are hereby established18
for the Nebraska individual income tax: 19
Individual Income Tax Brackets and Rates20
Bracket 21Single Married, Head of Married, Estates Tax
Number 22Individuals Filing Household Filing and Rate
23 Jointly Separate Trusts
1 24 $0-2,999 $0-5,999 $0-5,599 $0-2,999 $0-499 2.46%
2 25 $3,000- $6,000- $5,600- $3,000- $500-
26 17,999 35,999 28,799 17,999 4,699 3.51%
3 27 $18,000- $36,000- $28,800- $18,000- $4,700- Rate
28 28,999 57,999 42,999 28,999 15,149 Three
4 29 $29,000 $58,000 $43,000 $29,000 $15,150 Rate
30 and Over and Over and Over and Over and Over Four
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(b) For purposes of this subsection, rate three shall be:1
(i) 5.01% for taxable years beginning or deemed to begin on or after2
January 1, 2014, and before January 1, 2026; 3
(ii) 4.55% for taxable years beginning or deemed to begin on or4
after January 1, 2026, and before January 1, 2027; and5
(iii) 3.99% for taxable years beginning or deemed to begin on or6
after January 1, 2027. 7
(c) For purposes of this subsection, rate four shall be:8
(i) 6.84% for taxable years beginning or deemed to begin on or after9
January 1, 2014, and before January 1, 2023; 10
(ii) 6.64% for taxable years beginning or deemed to begin on or11
after January 1, 2023, and before January 1, 2024;12
(iii) 5.84% for taxable years beginning or deemed to begin on or13
after January 1, 2024, and before January 1, 2025;14
(iv) 5.20% for taxable years beginning or deemed to begin on or15
after January 1, 2025, and before January 1, 2026;16
(v) 4.55% for taxable years beginning or deemed to begin on or after17
January 1, 2026, and before January 1, 2027; and 18
(vi) 3.98% 3.99% for taxable years beginning or deemed to begin on19
or after January 1, 2027. 20
(3)(a) For taxable years beginning or deemed to begin on or after21
January 1, 2015, the minimum and maximum dollar amounts for each income22
tax bracket provided in subsection (2) of this section shall be adjusted23
for inflation by the percentage determined under subdivision (3)(b) of24
this section. The rate applicable to any such income tax bracket shall25
not be changed as part of any adjustment under this subsection. The26
minimum and maximum dollar amounts for each income tax bracket as27
adjusted shall be rounded to the nearest ten-dollar amount. If the28
adjusted amount for any income tax bracket ends in a five, it shall be29
rounded up to the nearest ten-dollar amount. 30
(b)(i) For taxable years beginning or deemed to begin on or after31
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January 1, 2015, and before January 1, 2018, the Tax Commissioner shall1
adjust the income tax brackets by the percentage determined pursuant to2
the provisions of section 1(f) of the Internal Revenue Code of 1986, as3
it existed prior to December 22, 2017, except that in section 1(f)(3)(B)4
of the code the year 2013 shall be substituted for the year 1992. For5
2015, the Tax Commissioner shall then determine the percent change from6
the twelve months ending on August 31, 2013, to the twelve months ending7
on August 31, 2014, and in each subsequent year, from the twelve months8
ending on August 31, 2013, to the twelve months ending on August 31 of9
the year preceding the taxable year. The Tax Commissioner shall prescribe10
new tax rate schedules that apply in lieu of the schedules set forth in11
subsection (2) of this section. 12
(ii) For taxable years beginning or deemed to begin on or after13
January 1, 2018, the Tax Commissioner shall adjust the income tax14
brackets based on the percentage change in the Consumer Price Index for15
All Urban Consumers published by the federal Bureau of Labor Statistics16
from the twelve months ending on August 31, 2016, to the twelve months17
ending on August 31 of the year preceding the taxable year. The Tax18
Commissioner shall prescribe new tax rate schedules that apply in lieu of19
the schedules set forth in subsection (2) of this section.20
(4) Whenever the tax brackets or tax rates are changed by the21
Legislature, the Tax Commissioner shall update the tax rate schedules to22
reflect the new tax brackets or tax rates and shall publish such updated23
schedules. 24
(5) The Tax Commissioner shall prepare, from the rate schedules, tax25
tables which can be used by a majority of the taxpayers to determine26
their Nebraska tax liability. The design of the tax tables shall be27
determined by the Tax Commissioner. The size of the tax table brackets28
may change as the level of income changes. The difference in tax between29
two tax table brackets shall not exceed fifteen dollars. The Tax30
Commissioner may build the personal exemption credit and standard31
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deduction amounts into the tax tables. 1
(6) For taxable years beginning or deemed to begin on or after2
January 1, 2013, the tax rate applied to other federal taxes included in3
the computation of the Nebraska individual income tax shall be 29.64
percent. 5
(7) The Tax Commissioner may require by rule and regulation that all6
taxpayers shall use the tax tables if their income is less than the7
maximum income included in the tax tables. 8
Sec. 2. Original section 77-2715.03, Revised Statutes Cumulative9
Supplement, 2024, is repealed. 10
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