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2026 rules · verified against Nebraska's primary source
Nebraska fully exempts military retirement pay from state income tax.
All military retirees may exclude 100% of military retirement benefits from Nebraska taxable income; no election or form needed (full exemption since tax year 2022).
Treatment
fully exempt
Top marginal rate
4.55%
Source: https://revenue.nebraska.gov/about/frequently-asked-questions/military-retirement-benefits-exclusion · verified July 2026
Estimated Nebraska state income tax on your military retirement, using the top marginal rate on the taxable portion (an upper bound; your effective rate is usually lower).
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