Nebraska

Moving from New Hampshire to Nebraska would RAISE your total state and local tax burden from 9.6% of income to 11.0% of income — an increase of +1.4 pts. On a $100K household budget, that is roughly $1400 more per year in combined state and local taxes.

Nebraska has a state income tax with a top rate of 5.20%, while New Hampshire has NO state income tax. Moving would expose your wage income to state taxation for the first time.

Nebraska state sales tax is 5.50%. With average local add-ons, the combined rate is 6.97%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.

Nebraska median effective property tax rate is 1.63% of home value. On a $400,000 home, that is roughly $6,520/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Nebraska imposes annual vehicle property or ad valorem tax. Expect a recurring annual assessment based on the vehicle's value or registration class, in addition to one-time sales tax at purchase. Budget for this ongoing cost.

Nebraska imposes a state inheritance tax (paid by beneficiaries based on relationship to decedent). Spouses and often children are typically exempt or taxed at lower rates; distant relatives and unrelated heirs pay more. No state estate tax applies to the estate itself.

In Nebraska: Social Security is not taxed. Pensions and 401(k)/IRA withdrawals are fully taxed.

Nebraska capital gains treatment: Taxed as regular income up to 5.20%; special exclusion for employer-granted stock held 5+ years. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Nebraska gas tax is 29.4¢/gal — 5.6¢/gal higher than New Hampshire's 23.8¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Nebraska residency rules: Domicile + 6-month physical presence. Permanent abode rule. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Nebraska recent tax law changes: Top rate cut to 5.20% for 2025 (from 5.84% in 2024). Path to 3.99% by 2027. Social Security fully exempt since 2024. Inheritance tax immediate family exemption raised to $100K in 2023.

For the most current tax information in Nebraska, visit the official source at https://revenue.nebraska.gov/. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.