Nebraska Capital Gains Tax (2026)
Nebraska capital gains tax rate: Taxed as ordinary income at up to 5.84%
Nebraska taxes capital gains as ordinary income. No preferential rate for long-term gains. As the top rate continues to decline toward 3.99%, the state-level capital gains burden will lessen significantly.
Federal Capital Gains Rates Still Apply to Nebraska Residents
All Nebraska residents also owe federal capital gains tax. Federal long-term capital gains rates are 0% (income up to ~$47,025 single), 15% (income up to ~$518,900 single), or 20% (above). High earners may also owe the 3.8% Net Investment Income Tax (NIIT).
Short-Term vs. Long-Term Capital Gains in Nebraska
Assets held less than one year are taxed as ordinary income at federal rates (10%–37%). Assets held over one year qualify for the preferential 0%/15%/20% federal rates. Nebraska taxes capital gains as ordinary income. No preferential rate for long-term gains. As the top rate continues to decline toward 3.99%, the state-level capital gains burden will lessen significantly.
Planning Considerations for Nebraska Investors
- Tax-loss harvesting can offset gains at both state and federal levels
- Timing asset sales to control income year and bracket placement
- Nebraska taxes capital gains at Taxed as ordinary income at up to 5.84% — factor this into net-of-tax return calculations
- Qualified Opportunity Zone investments can defer federal and potentially state gains
Frequently Asked Questions
What is the capital gains tax rate in Nebraska?
Nebraska taxes capital gains as ordinary income. No preferential rate for long-term gains. As the top rate continues to decline toward 3.99%, the state-level capital gains burden will lessen significantly. Federal rates (0%, 15%, 20% for long-term gains) also apply regardless of state.
Does Nebraska have a different rate for long-term vs. short-term capital gains?
Nebraska does not distinguish between short- and long-term capital gains — both are taxed as ordinary income at up to 5.84%. Only federal law provides preferential long-term capital gains rates.
How do I reduce capital gains tax in Nebraska?
Strategies include: holding assets over one year for federal long-term rates, tax-loss harvesting to offset gains, contributing to retirement accounts (401k, IRA), investing in Qualified Opportunity Zones, and timing sales across tax years. In Nebraska, capital gains are taxed at up to Taxed as ordinary income at up to 5.84%, so these strategies reduce both federal and state tax.
Is this capital gains tax calculator free for Nebraska?
Yes. Enter your gain amount, holding period, and annual income. The calculator applies both federal rates (0%/15%/20% long-term) and Nebraska's Taxed as ordinary income at up to 5.84% state rate to estimate your total tax owed.