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Capital Gains Tax in Nebraska
By Priya Raman
The numbers here sit close to the national middle.
The numbers here sit close to the national middle.
Nebraska's top state income tax rate is 5.84%, and it applies to capital gains without a separate carve-out. Combined with the federal 20% rate and 3.8% NIIT, a property sale can reach 29.6% total.
Three layers make up that 29.6%: 20% federal, 3.8% NIIT, and 5.84% Nebraska state tax. None of the three is optional once a sale closes without a deferral strategy in place.
As a hypothetical, not tied to any real property, take a $250,000 gain. At Nebraska's combined 29.6% rate, that works out to roughly $74,000 owed across all three layers. For an actual sale, including depreciation recapture, the capital gains tax calculator gives a more precise number.
That $74,000 stays deferred as long as the proceeds go into a replacement property through a 1031 exchange instead of a bank transfer. Model it in the 1031 exchange calculator and check your deadlines with the timeline calculator.