Tax rate used in calculating Nebraska state tax for year 2022
State Abbreviation: |
NE |
State Tax Withholding State Code: |
31 |
Acceptable Exemption Form: |
None |
Basis For Withholding: |
Federal Exemptions |
Acceptable Exemption Data: |
None |
TSP Deferred: |
Yes |
Special Coding: |
>Determine the Total Number Of Allowances Claimed field as follows:
First Position - S = Single; H = Head of Household; M = Married; 0 = Zero.
Second and Third Positions - Enter the total number of allowances claimed. If less than 10, precede with a zero.<
|
Additional Information: |
A state tax certificate is not required since Federal Exemptions are used in the computation of the state formula. >However, if a state tax certificate is on file, it will be used in the computation of the state formula. Y00 will be entered for employees who have provided proof that they are entitled to lower withholding than required by LB223. < |
Withholding Formula >(Nebraska Effective 2022) <
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment (s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the adjusted gross biweekly wages.
- Add taxable fringe benefits (taxable life insurance, etc.) to the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute the taxable income.
Exemption Allowance = >$2,080< x Number of Exemptions
- Apply the taxable income computed in step 5 to the following table to determine the annual Nebraska tax withholding.
Tax Withholding Table
Single or Head of Household |
If the Amount of
Taxable Income Is: |
The Amount of Nebraska
Tax Withholding Should Be: |
Over:
|
But Not
Over: |
|
Of Excess
Over: |
| $ 0 |
$ 2,975 |
$ .00 |
plus |
0.00% |
$ 0 |
| 2,975 |
5,820 |
.00 |
plus |
>2.26% |
2,975 |
| 5,820 |
18,900 |
64.30 |
plus |
3.22% |
5,820 |
| 18,900 |
27,390 |
485.48 |
plus |
4.91% |
18,900 |
| 27,390 |
34,780 |
902.34 |
plus |
6.20% |
27,390 |
| 34,780 |
65,310 |
1,360.52 |
plus |
6.59% |
34,780 |
| 65,310 |
and over |
3,372.45 |
plus |
6.95% |
65,310< |
Married |
If the Amount of
Taxable Income Is: |
The Amount of Nebraska
Tax Withholding Should Be: |
Over:
|
But Not
Over: |
|
Of Excess
Over: |
| $ 0 |
$ >7,100 |
$ .00 |
plus |
0.00% |
$ 0 |
| 7,100 |
11,270 |
.00 |
plus |
2.26% |
7,100 |
| 11,270 |
28,070 |
94.22 |
plus |
3.22% |
11,270 |
| 28,070 |
43,670 |
635.20 |
plus |
4.91% |
28,070 |
| 43,670 |
54,180 |
1,401.16 |
plus |
6.20% |
43,670 |
| 54,180 |
71,850 |
2,052.78 |
plus |
6.59% |
54,180 |
| 71,850 |
and over |
3,217.23 |
plus |
6.95% |
71,850< |
- If the employee is eligible for the lower withholding than required by Nebraska LB223, proceed to Step 8. If the employee claims SINGLE and claims 1 or fewer exemptions, proceed to Step 8. If the employee claims MARRIED and claims 2 or fewer exemptions, proceed to Step 8. Otherwise, calculate the annual tax amount as required by LB223 as follows:
a. Calculate the annual tax following Step 1 through 6 except use 1 exemption in Step 5 for SINGLE filers and use 2 exemptions in Step 5 for MARRIED filers.
b. Multiply the annual tax by one-half (0.50) to get the annual minimum tax.
c. 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 exemption claimed.
- Divide the annual Nebraska tax withholding by 26 to obtain the biweekly Nebraska tax withholding.
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