In recent years, Nebraska policymakers have worked to make the state's individual and corporate tax rates more competitive.
The nonpartisan Tax Foundation has published this update, noting that Nebraska is moving toward a flat corporate rate of 3.99% by 2027. For tax year 2024, Nebraska's top marginal corporate rate will be 5.84% on income exceeding $100,000, down from 7.25%.
For individuals, the state also aims to reduce the top rate to 3.99% by 2027. For tax year 2024, the top individual rate will be 5.84%. (See this analysis from Chamber partner Lutz for tax year 2023 guidance.)
Meanwhile, Gov. Jim Pillen is seeking to reduce the burden of Nebraska's locally imposed property taxes by 40% via a plan to raise state sales taxes. See this analysis by the conservative Platte Institute, which argues against efforts to raise the sales tax rate or extend the sales tax to business purchases.
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