At a glance
- Corporate tax
- 4.55% flat
- Tax on wages
- Up to 4.55%
- Sales tax
- 5.5% + local
- Economic nexus
- $100,000 or 200 transactions
- Minimum wage
- $15.00/hr
- UI wage base
- $9,000
- New-employer UI rate
- 1.25%
- Paid leave program
- None
- Annual report
- Biennial, Mar 1 of even years + occupation tax
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Qualify the corporation
Before doing business in NebraskaApply to the Secretary of State for a certificate of authority with a Delaware good-standing certificate and a Nebraska registered agent.
Register with the Department of Revenue
Before the first Nebraska payrollForm 20, the Nebraska Tax Application, opens withholding and, if needed, sales tax accounts.
Register for unemployment insurance
When the first Nebraska employee is hiredRegister with the Department of Labor; new non-construction employers pay 1.25% on the first $9,000 in 2026.
Report new hires
Within 20 days of hireReport each new hire to the state new-hire registry.
Set wage and sick time policies
First hire; sick time at 11 employeesPay at least $15.00 an hour; set up paid sick time accrual and post the notice once the company reaches 11 employees.
Buy workers’ compensation insurance
Before the first employee startsWorkers’ compensation coverage is required for employees.
Register for sales tax
When nexus is reachedRequired at $100,000 or 200 transactions into Nebraska, if the company sells taxable goods or software.
The six areas
- AccountingAccounting and state tax in NebraskaNebraska taxes corporate income at a flat 4.55% for 2026, falling each year, with single-sales-factor apportionment, market sourcing and combined reporting.Corporate income tax4.55% flat
- ReceivablesReceivables and sales tax in NebraskaNebraska keeps both tests — $100,000 or 200 transactions — and generally leaves access-only SaaS untaxed. The state rate is 5.5% plus up to 2% local.State sales tax rate5.5%
- PayablesPayables and contractors in NebraskaNebraska takes 1099s only when Nebraska tax was withheld. Use tax reaches downloaded software and hardware, not access-only SaaS.1099s to NebraskaWith Nebraska withholding
- PayrollPayroll taxes and employer rules in NebraskaNebraska’s minimum wage is $15.00 in 2026 and rises 1.75% a year from 2027. Paid sick time applies at 11 employees, and new employers pay 1.25% on $9,000.Minimum wage$15.00/hr
- ComplianceCompliance and filings in NebraskaGet a certificate of authority, then file the biennial report and occupation tax by March 1 of even years and the 1120N by the 15th day of the fourth month.Biennial report and occupation taxMar 1, even years
- AdvisoryAdvisory: credits and decisions in NebraskaNebraska’s Angel Investment Tax Credit gives investors a refundable credit for backing small Nebraska tech companies. Personal and corporate rates are falling to 4.55% in 2026.Angel Investment Tax CreditRefundable
Who you register with
- Nebraska Department of Revenue (DOR)Corporation income tax, withholding, sales and use tax (Form 20 registration)
- Nebraska Department of Labor (NDOL)Unemployment insurance, minimum wage and paid sick time enforcement, new-hire reporting
- Nebraska Secretary of State — Business ServicesCertificate of authority, biennial report and occupation tax
- Nebraska Department of Economic Development (DED)Angel Investment Tax Credit and ImagiNE Nebraska incentives
- Nebraska State Treasurer — Unclaimed PropertyAnnual unclaimed property report
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are Nebraska’s neighbors.
- SDSouth DakotaNo income tax at all, but sales tax on SaaS and services — the Wayfair state
- IAIowaFlat 3.8% wage tax, SaaS exempt for business buyers, and a 15-day new-hire clock
- MOMissouriFlat 4% corporate rate, no franchise tax, and a 1% earnings tax in KC and St. Louis
- KSKansas3.5% plus surtax, single sales factor from 2027, and a transferable R&D credit
- COColoradoFlat 4.4% tax, FAMLI premiums, and home-rule cities that run their own sales tax
- WYWyomingNo income taxes at all; a $60 license tax, state-fund workers’ comp and no tax on SaaS
Common questions
What is Nebraska’s corporate rate now?
For tax years beginning in 2026, a flat 4.55% on all Nebraska taxable income. Until 2023 Nebraska had two brackets, 5.58% up to $100,000 and 7.81% above; the 2023 tax package collapsed them and steps the rate down each year — 5.20% in 2025, 4.55% in 2026.
Do I charge Nebraska sales tax on SaaS?
Usually not. Nebraska taxes prewritten software that is transferred to the customer, however delivered, but access-only SaaS — where nothing is transferred — is generally outside the tax. A product that requires the customer to download and install a client should be reviewed against Reg-1-088.
Do I file 1099s with Nebraska?
Only when Nebraska income tax was withheld from the payment; those 1099s are filed with the W-3N reconciliation. A contractor paid in full without withholding is reported to the IRS only.
What is Nebraska’s minimum wage in 2026, and what happens next?
$15.00 an hour from January 1, 2026, the last step voters approved in 2022. LB 258, signed in February 2026, replaces inflation indexing with a fixed 1.75% increase each January from 2027, published by the Department of Labor by October 15 the year before.
When is the Nebraska report due?
Every two years, in even-numbered years. The biennial report and the occupation tax are due March 1 and become delinquent if not filed and paid by April 15. After that, a foreign corporation’s certificate of authority can be revoked.
Is there a Nebraska credit for our angel investors?
Nebraska’s Angel Investment Tax Credit gives investors a refundable state credit for investing in qualifying early-stage Nebraska companies — high-tech businesses with 25 or fewer employees and at least 51% of their workforce and payroll in Nebraska. The Department of Economic Development certifies the company and allocates the credits under an annual cap, so the company applies before the round closes, not after.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- Nebraska Department of Revenue — 2026 Corporation Estimated Income Tax (Form 1120N-ES)
- Nebraska Department of Revenue — 2025 Corporation Income Tax Booklet
- Nebraska Department of Revenue — Pass-Through Entity Tax FAQs
- Nebraska Department of Revenue — Apportionment for Multistate Business: Market-Based Sourcing
- Nebraska Department of Revenue — 2026 Nebraska Circular EN (withholding)
- Nebraska Department of Revenue — Sales and Use Tax
- Nebraska Department of Revenue — Remote Sellers and Marketplace Facilitators
- Nebraska Department of Revenue — Reg-1-088, Computer Software
- Nebraska Department of Labor — 2026 Guide to Understanding Unemployment Insurance Tax
- Nebraska Department of Labor — Minimum Wage and Paid Sick Time
- Nebraska Legislature — LB 258 (2026), final reading copy
- Nebraska Legislature — LB 415 (2025), Healthy Families and Workplaces Act amendments
- Nebraska Secretary of State — Select foreign corporation statutes (biennial report and occupation tax)
- Nebraska Secretary of State — Business Services
- Nebraska Legislature — Angel Investment Tax Credit Act (LB 389, 2011)
- Nebraska State Treasurer — Unclaimed Property
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.