Social Security fully exempt since 2025 and income tax rates are falling. Watch out: some of the highest property taxes in America.
The short version
Social Security: not taxed at all.
Pensions: Pensions taxed as regular income.
401(k) and IRA withdrawals: 401(k)/IRA withdrawals taxed as regular income.
The setup: Brackets up to 4.55% in 2026, falling to 3.99% in 2027.
The average effective property tax rate is about 1.44% — roughly $4,320 a year ($360 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Homestead exemption for homeowners 65+, based on income.
Try your own home value in the Property Tax Estimator.
Overall cost of living runs about 7% below the U.S. average. The combined state and average local sales tax is 6.98%.
January days top out around 33°F and July days around 87°F, with roughly 214 sunny days a year. Watch out for: Tornadoes and blizzards.
Nebraska Medicine in Omaha is strong; the panhandle is remote.
Nebraska has an inheritance tax. Inheritance tax: close relatives pay 1%; more distant heirs up to 15%