Taxes in Lincoln, Nebraska
Complete tax guide for Lincoln, NE. State income tax up to 5.84%, 1.58% property tax, 7.25% sales tax. Calculate your total tax burden.
State Income Tax
5.84%
Nebraska
Property Tax
1.58%
Effective rate
Sales Tax
7.25%
Combined rate
Tax Burden
High
Lincoln, NE Tax Overview
State capital; University of Nebraska
Population
291,082
Median Income
$60,025
Cost of Living
92.8 (100 = avg)
State Income Tax
5.84%
Median Home Price
$230,000
Lincoln Tax Calculator
Pre-filled with Lincoln median: $60,025
Total Tax Burden in Lincoln
$13,262
Take-Home: $46,763 · Effective Rate: 22.09%
Federal Tax
$5,165
8.60% eff.
NE State
$3,505
5.84% eff.
FICA
$4,592
7.65% eff.
Take-Home
$46,763
77.91% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $60,025.00 | $5,002.08 |
| Federal Income Tax | -$5,164.50 | -$430.38 |
| Nebraska State Tax | -$3,505.46 | -$292.12 |
| Social Security (6.2%) | -$3,721.55 | -$310.13 |
| Medicare (1.45%) | -$870.36 | -$72.53 |
| Take-Home Pay | $46,763.13 | $3,896.93 |
Property Tax in Lincoln
Median Home
$230,000
Annual Tax
$3,634
Monthly Tax
$303
Effective Rate
1.58%
Sales Tax in Lincoln
Combined Rate
7.25%
State Portion
~4.8%
Local Portion
~2.5%
The combined sales tax rate in Lincoln is 7.25%, which is above the national average of 7.12%. On a $100 purchase, you would pay $7.25 in sales tax.
Tax Burden Comparison
| Tax Type | Lincoln | Nebraska Avg | National Avg |
|---|---|---|---|
| Income Tax | 5.84% | 5.84% | 4.6% |
| Property Tax | 1.58% | ~1.58% | 1.1% |
| Sales Tax | 7.25% | ~7.25% | 7.12% |
| Overall Burden | High | — | Moderate |
Tax Saving Tips for Lincoln Residents
- Nebraska's income tax rate of 5.84% is above average. Maximize pre-tax retirement contributions (401k up to $23,500, IRA up to $7,000) to reduce both federal and state taxable income.
- Property tax in Lincoln (1.58%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Nebraska
Calculate Your Full Nebraska Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Lincoln, NE?
Lincoln, Nebraska has a state income tax rate up to 5.84%. The property tax rate is 1.58% and the combined sales tax rate is 7.25%. State capital; University of Nebraska
How much is property tax in Lincoln?
The effective property tax rate in Lincoln is 1.58%. On the median home price of $230,000, this equals approximately $3,634 per year or $303 per month. This is above the national average of 1.1%.
What is the sales tax rate in Lincoln?
The combined sales tax rate in Lincoln is 7.25%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Lincoln's tax burden compare to other cities?
Lincoln has a high overall tax burden. The effective total tax rate for a median-income household is approximately 31.2%. The combination of 5.84% state income tax, 1.58% property tax, and 7.25% sales tax determines the total burden. Cost of living index is 92.8 (100 = national average).
Are there any local taxes in Lincoln?
Lincoln does not impose a separate local or city income tax. Residents pay the state income tax of 5.84%, federal income tax, and FICA (Social Security and Medicare). State capital; University of Nebraska