How LLC Owners Save on Taxes in 2026

Nebraska 2026 Tax Changes — What the One Big Beautiful Bill Act (OBBBA ) and State Tax Cuts Mean for Residents

On January 1, 2026, the tax landscape for Nebraskans will undergo a historic and positive transformation. At the federal level, the One Big Beautiful Bill Act (OBBBA) has made the popular 2017 TCJA tax cuts permanent and introduced new benefits, avoiding the feared “tax cliff.”

This federal relief is amplified by Nebraska’s own landmark tax reform, which is aggressively cutting the state’s top income tax rate to a flat 3.99% by 2027. This creates a powerful “one-two punch” of tax savings for residents, farmers, and business owners across the Cornhusker State.

This guide provides a clear, localized breakdown of how these permanent federal and state tax laws will impact your income, business, and financial strategy in 2026 and beyond.

The Double Win: Federal and State Tax Cuts

Permanent Federal Relief from OBBBA

OBBBA has made the federal tax picture much brighter for all Americans, including Nebraskans.

Nebraska’s New, Lower Flat Tax

This is the biggest state-level tax change in a generation. Nebraska is in the process of dramatically cutting its income tax, with the goal of a single, competitive 3.99% at income tax rate by 2027.

👉 Nebraska Impact: This is a monumental win. It simplifies the state tax code and provides significant, permanent tax relief. When combined with the permanent federal cuts, it means Nebraskans will keep more of their hard-earned money at both the state and federal level.

New Federal Tax Breaks for Nebraska Residents

OBBBA also introduced several new federal deductions that will directly benefit many in Nebraska:

Nebraska-Specific Tax Considerations for 2026

A Major Win for Agriculture

The permanent 20% federal QBI deduction is a huge benefit for Nebraska’s massive agricultural sector. Farmers, ranchers, and related businesses can continue to rely on this powerful federal deduction to lower their tax burden. This provides much-needed certainty for the businesses that are the backbone of the Nebraska economy.

Favorable Treatment of Social Security

Nebraska is phasing out the taxation of Social Security benefits. By 2024, Social Security income is fully exempt from Nebraska state income tax.

👉 Nebraska Impact: The combination of permanent lower federal tax rates under OBBBA and Nebraska’s zero-tax policy on Social Security makes the state an even more attractive destination for retirees.

Real Estate and STRs

For property owners in growing markets like Omaha and Lincoln, OBBBA brings welcome news. The 100% bonus depreciation for qualified property is now permanent. This allows real estate investors and STR hosts to immediately write off the cost of certain assets on their federal return, making strategies like cost segregation incredibly powerful.

What Nebraska Taxpayers Should Do Now

Nebraska 2026 Tax FAQ

No — QBI is federal-only.

Rates do not change, but taxable income rises due to federal changes.

Yes — reduced credits and higher taxable income lower refunds.

Yes — depreciation and participation rules tighten.

Yes — federal bracket changes raise tax cost on withdrawals.

Get Your Personalized 2026 Nebraska Tax Plan

The tax landscape has permanently shifted in your favor. Don’t operate on outdated assumptions. A personalized strategy session will ensure you are structured to maximize every new and permanent benefit under OBBBA and Nebraska’s new, lower state tax rates.

Because tax situations vary by individual and business, many Nebraska residents choose to work with a qualified tax professional. You can explore available Nebraska tax services here:

Book a Free Strategy Call and Meet Your Match.

Professional, Licensed, and Vetted MERNA™ Certified Tax Strategists Who Will Save You Money.