Nebraska taxes capital gains at 5.84%. Combined with federal taxes, your effective rate on a home sale could reach 24.6%.
NE State Rate
5.84%
Top marginal rate
Federal Rate
15%
Most common long-term bracket
Combined Effective
24.6%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If Nebraska is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in Nebraska don't qualify for the exclusion. You'll owe 5.84% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In Nebraska, homes sold in October sell for 13% more than those sold in January (-17%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in Nebraska and nearby states.
| State | Rate | Tax on $150K Gain | Notes |
|---|---|---|---|
| 0% | $0 | No state income tax | |
Wyoming0% | 0% | $0 | No state income tax |
| 3.8% | $5,700 | Flat tax (2026) | |
| 4.4% | $6,600 | Flat tax rate | |
| 4.8% | $7,200 | Top marginal rate | |
| 5.7% | $8,550 | Top marginal rate | |
NebraskaYou | 5.84% | $8,760 | Top marginal rate |
Selling in South Dakota instead of Nebraska would save $8,760 in state tax on a $150K gain.
Nebraska taxes capital gains as ordinary income at rates up to 5.84%.
Omaha and Lincoln drive the majority of market activity. Both markets have seen steady appreciation.
Nebraska does not offer preferential capital gains rates. The state's relatively affordable housing means most gains fall within the federal exclusion.
Sellers of agricultural land near urban areas may face larger gains as farm-to-residential conversion increases property values.
Offering buyer concessions?
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