Change individual income tax rates

Nebraska's LB 802 lowers individual income tax rates for higher earners starting in 2026. It reduces the top marginal tax rate (rate three) from 5.01% to 4.55% and the highest rate (rate four) from 6.84% to 4.55% for tax years beginning January 1, 2026, through 2027. These changes directly affect Nebraska residents filing individual income tax returns who earn above $28,999 as single filers or $57,999 as married couples filing jointly. The bill modifies existing tax brackets without altering the income thresholds for each bracket.