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Californiaworking inNebraska
COE Risk — may owe tax even if fully remote

Nebraska

Work State Tax Rate
Up to 5.2% (2025), 4.55% (2026)
Withholding Starts
After 7 days or $5,000 in income
Law Last Updated
Jan 1, 2025 (COE); Jan 1, 2026 (rate)

Employee Obligations (Which Returns YOU Must File)

Nebraska has a Convenience of Employer rule that affects California residents. If your employer is in Nebraska and you work remotely from California, Nebraska may still tax your paycheck. File a nonresident Nebraska return plus your California return and claim the Schedule S credit. Consider consulting a CPA.

Employer Obligations (What Your Employer Must Withhold & Remit)

Nebraska's Convenience of Employer rule may require withholding Nebraska tax even if the California employee works 100% remotely. Register for withholding and unemployment. The COE rule is limited by the 7-day threshold — if the Minnesota employee never travels to Nebraska, no withholding is required. Unemployment is 1.25% on the first $9,000 of wages.

Remote Work Tax Risk — Convenience of Employer (COE) Rule

Nebraska has a full COE rule, but it was modified in 2025 — it only applies if you are physically present in Nebraska for more than 7 days in a year. If you work 100% remotely from California and never travel to Nebraska, you are not affected.

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Row last reviewed: May 9, 2026Home state credit form: Schedule S

This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.