Key figures
Nebraska accounting
2026, with sources
A rate that keeps falling
Nebraska’s 2023 tax package replaced the old two-bracket corporate tax — 5.58% on the first $100,000 and 7.81% above — with a single rate that steps down each year. It was 5.20% for 2025 and is 4.55% on all Nebraska taxable income for tax years beginning in 2026. The return is Form 1120N, due on the 15th day of the fourth month after year end, with estimates on Form 1120N-ES.
For the tax provision, the falling rate matters every year: Nebraska deferred tax balances should be measured at the rate enacted for the year they are expected to reverse, so a schedule of future rates is part of the Nebraska computation rather than a single number.
Single sales factor, market-based, combined
Nebraska apportions with a single sales factor and has sourced services and intangibles to the market — where the service is received — since 2014. Its regulations give examples for services used in several states, attributed to Nebraska in proportion to the benefit received there. A unitary group files a combined report.
So a 10-person software company with its whole team in Lincoln but only 3% of its customers in Nebraska apportions about 3% of its income to Nebraska. The office location drives payroll obligations, not the corporate tax.
No franchise tax — but an occupation tax
Nebraska has no franchise tax on income or net worth. It does charge corporations a biennial occupation tax through the Secretary of State, paid with the biennial report; for a foreign corporation it is measured by the value of the real estate and personal property the corporation employs in Nebraska. It belongs in operating expense, not the income tax provision.
Deadlines
- 15th day of the 4th month after year endNebraska corporation income tax return1120N
- QuarterlyEstimated tax payments1120N-ES
The federal baseline
This page covers what Nebraska adds. The federal rules underneath it apply here too.
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.
Does Nebraska require combined reporting?
Yes. Nebraska requires a combined report for a unitary group, apportioned with a single sales factor. A Delaware parent with a Nebraska operating subsidiary and other affiliates in the same business files as one group.
Accounting next door
- SDSouth Dakota accountingSouth Dakota has no corporate income tax, no personal income tax and no gross receipts tax for an ordinary business. Its claim on a startup is sales tax, payroll and the annual report.
- IAIowa accountingIowa taxes corporations at 5.5% on the first $100,000 and 7.1% above for 2026, apportions by a single sales factor, and follows the federal code on a rolling basis.
- MOMissouri accountingMissouri taxes corporations at a flat 4% on income apportioned by a single sales factor, with services sourced to the customer. There is no franchise tax.
- KSKansas accountingKansas taxes corporations at 3.5% plus a 3% surtax above $50,000, and apportions by three factors until single sales factor arrives in 2027.
- COColorado accountingA flat 4.4% corporate income tax on federal taxable income, apportioned on sales. Conformity is rolling, with a 2026 decoupling from the federal FDDEI deduction.
- WYWyoming accountingWyoming has no corporate, gross receipts or individual income tax; the only state-level levy on a corporation is the annual report license tax — $60 or $0.0002 per dollar of Wyoming assets.
Founder guides on this
- US GAAPUS GAAP for early-stage startups, in plain EnglishAccrual accounting, revenue recognition (ASC 606), leases (ASC 842), stock compensation and capitalized software: what each means for a small company.
- R&D taxThe R&D tax credit and Section 174A for startupsEngineering salaries can earn a federal R&D credit against payroll tax, and Section 174A lets you deduct US research again. What qualifies, what to track.
- FundraisingAudit-ready books before your Series AInvestors, lenders and auditors ask for the same things: accrual statements, reconciled accounts and support for every balance. How to be ready first.
More of the Nebraska guide
- ReceivablesReceivables and sales tax in NebraskaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in NebraskaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in NebraskaWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in NebraskaRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in NebraskaCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
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.