Bill > LB171

This bill modifies individual and corporate income tax rates in Nebraska, primarily adjusting the tax rates for different income brackets. For individual income taxes, the bill changes the third tax rate (for middle-income brackets) from 4.55% to 4.99% for taxable years beginning on or after January 1, 2026, and similarly adjusts the fourth tax rate (for highest-income brackets) from 4.55% to 4.99% for the same period. The bill removes previously scheduled reductions to 3.99% for both these tax rates. For corporate income taxes, the bill similarly adjusts the overall tax rate from 4.55% to 4.99% for taxable years beginning on or after January 1, 2026, and eliminates the previously planned reduction to 3.99% in 2027. The changes apply to both individual and corporate taxpayers, effectively maintaining slightly higher tax rates than previously scheduled. The bill also includes provisions for the Tax Commissioner to update tax rate schedules and create tax tables to reflect these changes, ensuring that taxpayers can easily understand and calculate their tax obligations under the new rates.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=58969