Nebraska Bonus Tax Calculator 2025
Updated for 2025: Latest federal and Nebraska state tax rates, standard deductions, and FICA limits included.
Gross Bonus Amount:
$0.00
Federal Income Tax:
$0.00
Nebraska State Tax:
$0.00
Social Security Tax:
$0.00
Medicare Tax:
$0.00
Additional Medicare Tax:
$0.00
Total Taxes:
$0.00
Net Bonus Amount:
$0.00
How to Use This Calculator
1
Select Calculation Method
Choose between Percentage Method (for separate bonus checks) or Aggregate Method (for combined pay).
2
Enter Bonus Amount
Input your gross bonus amount before any taxes or deductions are applied.
3
Set Filing Status
Select your tax filing status to ensure accurate withholding calculations.
4
Review Results
View your detailed tax breakdown including federal, state, and FICA taxes to see your net bonus amount.
How Are Bonuses Taxed in Nebraska 2025?
Bonuses in Nebraska are taxed at both federal and state levels in 2025. Your employer withholds a flat 22% for federal taxes (or 37% if over $1 million), plus Nebraska state income tax. Nebraska’s income tax rates range from 2.46% to 5.20% in 2025, depending on your total income.
Federal Bonus Tax Withholding
When you get a bonus check, it’s treated as supplemental income. The percentage method is used if your bonus comes in a separate check from your regular paycheck. This means your employer takes out 22% right away for federal taxes.
Here’s what happens:
- Bonuses under $1 million: 22% federal withholding
- Bonuses over $1 million: 37% federal withholding
- Social Security tax: 6.2% (on wages up to $168,600)
- Medicare tax: 1.45% (plus 0.9% on high earners)
Nebraska State Bonus Tax
Nebraska treats bonuses like regular income for tax purposes. The “special income tax withholding rate” remains 1.5% for certain situations, but most bonuses follow regular withholding rates.
Your Nebraska tax depends on your income bracket:
- 2.46% on the first portion of income
- Up to 5.20% on higher amounts
Real Example
Let’s say you get a $5,000 bonus in Nebraska:
- Federal withholding: $1,100 (22%)
- Nebraska withholding: ~$123-260 (2.46%-5.20%)
- Social Security: $310 (6.2%)
- Medicare: $72.50 (1.45%)
- Take-home: About $3,335-$3,395
Important Things to Know
You might get money back when you file taxes. The withholding is just an estimate. Your actual tax depends on your total yearly income and deductions.
Nebraska provides a standard Personal Exemption tax credit of $157.00 in 2025 per qualifying filer. This helps reduce your final tax bill.
FAQs about Bonus Tax in Nebraska in 2025
1. How is a bonus taxed in Nebraska in 2025?
Bonuses in Nebraska are taxed as regular income under the state’s individual income tax rate, which drops to 5.2% for 2025 per the PTET schedule. Employers may withhold at a flat 1.5% "special income tax withholding rate" if applicable, per the Nebraska Department of Revenue.
2. What is the Nebraska bonus tax rate for 2025?
There’s no separate "bonus tax" in Nebraska; bonuses fall under the state income tax rate of 5.2% for 2025. This rate applies unless your employer uses the optional 1.5% special withholding rate for supplemental wages.
3. Will Nebraska’s tax changes in 2025 affect my bonus?
Yes, the state income tax rate decreasing to 5.2% in 2025 (from 5.84% in 2024) will slightly lower the tax on your bonus. However, federal taxes on bonuses remain unchanged, typically withheld at 22% for amounts up to $1 million.
4. How do I calculate tax on a bonus in Nebraska for 2025?
Multiply your bonus by Nebraska’s 5.2% state income tax rate, then add federal withholding (usually 22%) and any applicable payroll taxes like Social Security (6.2%) and Medicare (1.45%). For example, a $1,000 bonus would see about $52 in state tax and $220 in federal tax withheld, before other deductions.
5. Are there any new tax credits in Nebraska for 2025 that apply to bonuses?
No tax credits specifically target bonuses in 2025, but new credits like the Family Caregiver Tax Credit (up to $2,000-$3,000) or Pregnancy Help Act Credit could offset your overall tax liability. These apply to eligible expenses or donations, not bonus income directly.
6. Does Nebraska’s Pass-Through Entity Tax (PTET) affect bonus taxation in 2025?
The PTET, with a 5.2% rate in 2025, applies to business income for electing partnerships and S-corporations, not employee bonuses. If you’re an employee receiving a bonus, PTET doesn’t impact your tax; it’s for business owners.
7. Why is my 2025 bonus taxed differently than my regular paycheck in Nebraska?
Bonuses may be taxed differently if your employer uses the 1.5% special withholding rate instead of the standard wage bracket method. This flat rate simplifies withholding but reconciles with the 5.2% income tax rate when you file your return.
8. Can I reduce taxes on my 2025 bonus in Nebraska?
You can’t avoid state income tax on your bonus, but contributing to a pre-tax retirement account (like a 401(k)) or claiming credits like the Nebraska Property Tax Credit for community college taxes paid could lower your overall tax burden. Plan deductions before year-end for maximum benefit.
9. When will employers update bonus tax withholding for Nebraska’s 2025 rates?
Employers must use the updated Nebraska Circular EN for 2025, effective January 1, 2025, which reflects the 5.2% income tax rate and 1.5% special withholding option. Most payroll systems will adjust automatically by the first pay period of 2025.
10. How does Nebraska’s 2025 tax rate compare to other states for bonuses?
Nebraska’s 5.2% rate in 2025 is moderate—lower than Iowa’s 5.7% but higher than South Dakota’s 0% (no state income tax). Combined with federal taxes, your bonus tax burden in Nebraska remains competitive regionally.